Mumbai: India and New Zealand recently concluded a Free Trade Agreement (FTA) that offers significant duty-free access for Indian exports, but Gems & Jewellery (G&J) are listed among the sensitive sectors excluded from immediate zero-duty benefits under the FTA, with India protecting these products, alongside dairy, sugar, and metals, from immediate tariff cuts, though the overall deal aims to boost labour-intensive exports like textiles, leather, and processed foods, supporting MSMEs and enhancing Indian competitiveness in the NZ market. 

Key Details for Jewellery Sector:

• Exclusion: Gems and jewellery are on New Zealand’s sensitive list, meaning they do not get immediate zero-duty access like many other Indian goods.
• Protections: This exclusion safeguards India’s (and New Zealand’s) sensitive domestic industries from sudden import surges, maintaining strategic economic control.
• Broader Benefits: While jewellery isn’t zero-duty, the FTA provides overall market access, strengthens IP protection, and boosts trade in services, creating a better environment for related industries.
• Labour-Intensive Focus: The FTA prioritizes boosting labour-intensive sectors like textiles, leather, and handicrafts, helping MSMEs

Welcoming the move, Mr. Kirit Bhansali, Chairman, GJEPC said, “The India–New Zealand FTA is a significant step forward for India’s gem and jewellery sector. The agreement enhances India’s competitiveness in the New Zealand market by extending tariff advantage up to 2.5% for various product lines including gem and jewellery. We see strong potential to scale India’s G&J exports to New Zealand from USD 16.61 million in 2024 to USD 50 million over the next three years, strengthening India’s footprint in this important market.”