The European Union removes tariffs on Indian jewelry to boost bilateral trade

 

La Unión Europea and India They signed a strategic free trade agreement on January 27, 2026, eliminating tariffs on jewelry imported from the Asian country. The pact aims to mitigate the decline in exports to other markets and strengthen the economic link between the two blocs through almost complete tariff liberalization.

 

Trade liberalization and scope of the agreement

 

After nearly two decades of complex negotiations, the treaty establishes an unprecedented framework for openness. UE will liberalize 99,5% of its tariff lines for goods originating from the India within seven years. For its part, the Asian giant will reduce tariffs in the 96,6% of imports of European origin, promoting a two-way flow of goods.

 

The sector gems and jewelry India is the biggest beneficiary of this alliance. Until now, finished Indian jewelry faced tariffs of between 2% and 4%, which will disappear completely once parliamentary ratification is complete. This strategic move responds to the Indian industry's need to diversify its export markets, especially after a severe 44% drop in its exports to [unspecified countries]. EE.UU. during the year 2026.

 

Economic impact and projections of the sector

 

The figures support the magnitude of this decision. In 2024, jewelry exports from the India towards the European bloc they added 2.700 millionWith the new regulatory framework, forecasts indicate that bilateral trade in this segment will double, reaching 9.900 million (approximately 910.000 billion rupees) over a three-year horizon.

 

Market Concept	Data / Value
Tariffs eliminated (Finished jewelry)	2% to 4%
Tariff lines liberalized by the UE	99,5 %
Tariff lines liberalized by the India	96,6 %
Exports to the UE (2024)	$2.700 million
Bilateral trade forecast (3 years)	$9.900 million
Drop in exports to EE.UU. (2026)	-44%

 

Industry statements

 

Kirit Bhansali, Chairman of the Consejo de Promoción de la Exportación de Gemas y Joyería (GGEPC) from India, has highlighted the importance of this preferential access: "Tariff-free access to the world's largest consumer market empowers export hubs in Gujarat, Rajasthan, Maharashtra y Bengala Occidental to increase shipments of precious jewelry, silver, and imitations."

 

Likewise, Sabyasachi Ray, executive director of GJEPCHe confirmed that the effective elimination of tariffs is contingent upon the final approval of the agreement by the parliamentary bodies of both territories. The agreement covers everything from simple jewelry to pieces with precious stones, taking advantage of the Indian renown in design to consolidate its presence in the community market.

 

Key points and frequently asked questions about the EU-India agreement

What types of jewelry products will benefit?

The agreement includes the elimination of tariffs for the precious jewelry (both plain and with stones), items of plata and pieces of imitation manufactured in the India.

What is the commercial growth objective of this agreement?

Bilateral trade in gems and jewelry is expected to increase from current levels to 9.900 million within three years, offsetting weakness in other international markets.

When will the complete elimination of tariffs come into effect?

Although the announcement was made on January 27, 2026, the elimination of the 2-4% tariffs will take effect after the parliamentary approval and formal ratification by both parties.