Tuesday, May 21, 2024
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GJEPC Anticipates India’s Trade Pact with EFTA to Propel Gem & Jewellery Exports

India’s recent Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) is poised to catalyze gem and jewellery exports to Switzerland, Iceland, Norway, and Liechtenstein, with projections indicating a potential surge from the current USD 335 million to USD 1 billion in the near future.

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The elimination of customs duties on Chapter 71 (Gem and Jewellery products) has granted Indian exporters duty-free access across all EFTA countries, heralding a significant boost for the gem and jewellery sector.

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Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), Vipul Shah, expressed appreciation towards the Indian government, particularly Minister of Commerce & Industry Piyush Goyal, for incorporating GJEPC’s recommendations in the India-EFTA TEPA. Shah emphasized the considerable opportunities now available for Indian manufacturers to expand their export horizons in the EFTA region. He anticipates a substantial uptick in gem and jewellery exports to EFTA countries, driven by fine gold and silver jewellery, alongside exquisite diamond and coloured gemstone jewellery.

GJEPC played an instrumental role in the negotiation process, collaborating closely with the Ministry of Commerce and Industry to advocate for industry interests. The council provided strategic recommendations aligned with the industry’s objectives, ensuring a favorable outcome for Indian exporters.

Despite EFTA’s total imports of finished Gem & Jewellery products amounting to US$12.3 billion, India’s share currently stands at a modest US$335 million. This discrepancy underscores the vast potential for Indian manufacturers to capture a larger share of the untapped EFTA markets.

Key relaxations for EFTA members in the gem and jewellery sector include phased duty eliminations and reductions over a span of 5 to 10 years. Import duties on various products, including natural pearls, rough diamonds, coloured gemstones, and lab-grown diamonds, are set to be gradually phased out, fostering a conducive trade environment.

The reduction of customs duty on precious metal gold imports from EFTA countries further underscores India’s commitment to fostering robust trade relations with the EFTA bloc.

The prescribed Post-shipment Credit (PSR) norms align with Foreign Trade Policy (FTP) guidelines, ensuring feasibility and compliance within the regulatory framework.

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