New Delhi, July 2025 – A major trade breakthrough is set to reshape India’s diamond export landscape. India has officially ratified a landmark agreement with the European Free Trade Association (EFTA) — comprising Switzerland, Iceland, Norway, and Liechtenstein — that will eliminate tariffs on Indian diamond exports to these countries over the next decade.
The Trade and Economic Partnership Agreement (TEPA), signed in March after a record 16 years of negotiations, was formally ratified by all four EFTA members and is now scheduled to take effect on 1 October 2025, as announced by India’s Commerce and Industry Minister, Piyush Goyal.
Swiss Market Key to Indian Diamond Trade
While the pact covers a broad range of sectors, the diamond trade has emerged as a headline beneficiary. Switzerland, a global hub for luxury goods and precious stones, is by far the most significant destination among the four EFTA nations for Indian diamonds. Current import tariffs on Indian diamonds range from 2.5% to 5%, which will now be phased out to zero over the next 10 years.
Though Iceland, Norway, and Liechtenstein currently handle minimal volumes of Indian diamonds, the deal opens potential for growth and diversification in trade relationships.
$100 Billion Investment Target and Job Creation
Speaking at the official announcement on 19 July, Minister Goyal emphasized the sweeping scope and potential of the agreement:
“This is one of India’s most comprehensive trade agreements. It is poised to unlock $100 billion in foreign investment over the next 15 years, with $50 billion targeted in the first decade, followed by an equal sum in the next five years.”
The TEPA is projected to create one million direct jobs in India and significantly deepen trade ties between India and the non-EU European bloc, providing new opportunities in sectors such as jewellery, technology, pharmaceuticals, textiles, and machinery.
A Strategic Win for Indian Exporters
For Indian diamond exporters, especially those dealing in cut and polished stones, the tariff elimination is expected to enhance competitiveness and expand access to the European luxury market, particularly in Switzerland, which serves as a key conduit to global high-end jewellery brands.
The TEPA represents not just a tariff agreement but a broader economic partnership designed to foster sustainable trade, strengthen bilateral ties, and bring Indian manufacturing and exports closer to Western Europe’s affluent markets.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
