The Gem and Jewellery Export Promotion Council (GJEPC) has projected that the proposed free trade agreement (FTA) between India and New Zealand will significantly boost the country's gems and jewellery exports. With zero-duty access to the New Zealand market, exports are expected to reach USD 50 million within three years of the agreement coming into effect.
Key Benefits of the FTA
The FTA is expected to eliminate tariffs on a wide range of gem and jewellery products, making Indian exports more competitive in the New Zealand market. Currently, Indian exporters face duties of up to 10% on certain items. The removal of these duties will provide a substantial advantage over competitors from other countries.
Projected Export Growth
According to GJEPC estimates, the current gems and jewellery exports from India to New Zealand stand at around USD 15 million annually. The zero-duty access is anticipated to more than triple this figure to USD 50 million over three years, driven by increased demand for Indian diamonds, gold jewellery, and colored gemstones.
Strengthening Bilateral Trade
The FTA is part of broader efforts to strengthen economic ties between India and New Zealand. Both nations have been engaged in negotiations to enhance trade in goods and services. The gems and jewellery sector is expected to be one of the major beneficiaries, along with textiles, pharmaceuticals, and agricultural products.
Industry Reactions
The GJEPC has welcomed the development, stating that it will open up new opportunities for Indian exporters. The council emphasized that the agreement will also lead to greater collaboration between the two countries in design, technology, and skill development. Indian jewellery manufacturers are optimistic about tapping into the New Zealand market, which has a growing demand for high-quality, ethically sourced products.
Challenges and Opportunities
While the zero-duty access presents a significant opportunity, exporters will need to comply with New Zealand's strict quality and origin norms. The GJEPC is working with member companies to ensure they meet these standards. Additionally, the council is exploring ways to promote Indian jewellery through trade fairs and buyer-seller meets in New Zealand.
The FTA is expected to be finalized soon, with both countries keen to conclude negotiations. Once implemented, it will mark a new chapter in India-New Zealand trade relations, particularly for the gems and jewellery sector.
