Chennai: India having signed a trade pact, the gems and jewellery industry hopes to grow exports to EFTA countries- Switzerland, Iceland, Norway and Liechtenstein- from $335 million to $1 billion in the coming years.
The Trade and Economic Partnership Agreement (TEPA) has opened immense opportunities for the Indian gem and jewellery sector to enhance its exports to the untapped EFTA countries especially to Switzerland. EFTA countries have removed customs duties on gem and jewellery products, enabling Indian exporters to have duty free access.
EFTA’s total imports of finished gem and jewellery products are $12.3 billion and shipments from India is just $335 million or 2.7 per cent of EFTA imports.
“I am sure that exports of gem and jewellery products to the EFTA group will scale up from $335 million to at least $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,” said Vipul Shah, Chairman of GJEPC.
Further, imports of natural or cultured pearls, rough diamonds, precious semi-precious coloured gemstones, polished synthetic stones and dust and powder of diamonds from EFTA countries would be duty free at the end of 5 years, 7 years or 10 years.
Customs duty on the imports of cut and polished diamonds, precious and semiprecious coloured gemstones and lab grown diamonds from EFTA has been reduced from 5 per cent to 2.5 per cent. Further, there is a reduction of duty by 1 per cent from the Bound Rate on precious metal gold imports from EFTA countries.
