India-EFTA $100 bn FTA Indicates potential and paves the way for more & larger FTAs with European countries
FinTech BizNews Service
Mumbai, March 14, 2024: The Trade and Economic Partnership Agreement (TEPA) between India and European Free Trade Association (EFTA) has opened immense opportunities for Indian gem and jewellery (G&J) sector to enhance its exports to the untapped EFTA countries especially to Switzerland. EFTA countries have removed customs duties on the entire chapter 71 (Gem and Jewellery products) enabling Indian exporters of G&J to have a duty free access in all the EFTA countries - Switzerland, Iceland, Norway and Liechtenstein.
Vipul Shah, Chairman, GJEPC said, “I extend my gratitude to the Government of India, particularly to Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, for incorporating GJEPC’s recommendations in the India-EFTA Trade and Economic Partnership Agreement (TEPA). The $100 bn bilateral trade pact has opened up immense opportunities for Indian gem and jewellery manufacturers to broaden their export prospects in the EFTA region. It will also pave the way for new and larger FTAs with many other European countries. I am sure that exports of gem and jewellery products to EFTA group will scale up from US$335 million to at least US$1 billion in the coming times. I believe there is a huge scope for exporting fine gold jewellery and silver jewellery with high gloss and matte finishes, as well as luxurious diamond and coloured gemstone jewellery.”
GJEPC had closely worked with the Ministry of Commerce and Industry during the negotiations of this momentous agreement with EFTA group. The GJEPC recommended HS line-wise (at 8 digit level) stance pertaining to offerings/ requests to be made to the EFTA group in the light of best interest of the whole industry.
EFTA’s total imports of finished Gem & Jewellery products are at US$12.3 billion and from India its imports are merely at US$335 million (India’s share is 2.7% in EFTA total imports of G&J from World) leaving a vast scope for Indian manufacturers and exporters to enhance its exports to the untapped EFTA markets.
Relaxations for EFTA group w.r.t gem and jewellery sector are as follows:
· Imports of the following products from EFTA countries in India would be duty free at the end of 5 years, 7 years or 10 years meaning thereby duties on the following products would be eliminated in equal instalments over a period of 5/7/10 years.
o Natural/Cultured Pearls – Worked and Unworked
o Rough diamonds – Natural
o Precious and Semiprecious coloured gemstones – Unworked
o Polished Synthetic stones.
o Dust and Powder of Diamonds and Stones
· Cut and Polished Diamonds
· Precious and Semiprecious coloured gemstones – Worked
· Lab grown diamonds -polished
