The recently concluded trade agreement between the European Union and India will significantly reduce India’s import duty on naturally polished diamonds of European origin, from 5.5% to 2.5%. The measure represents a boost to the Antwerp diamond industry and strengthens Antwerp’s position as an international polishing centre.
The tariff reduction is the result of sustained lobbying efforts by AWDC in close cooperation with the European Commission. The lower duty is expected to improve the competitiveness of diamonds polished in Europe and to have a positive impact on exports from Antwerp to the Indian market.
India is considered one of the fastest-growing consumer markets for jewelry worldwide. Easier access to this market could therefore create new opportunities for European diamond companies, particularly those active in cutting and polishing. With the reduced tariff, diamonds polished in Europe will enter India at a more favourable rate than before and, in some cases, at a competitive advantage compared with other major trading hubs.
Beyond the immediate financial impact, the trade agreement also brings greater predictability. In the past, India’s import duty on polished diamonds fluctuated frequently, rising from 2% in 2012 to 7.5% in 2018 before being lowered again to 5.5% in 2022. The new rate of 2.5% is now formally anchored in the EU–India agreement, meaning it can no longer be changed unilaterally.
This added stability is particularly important at a time when the diamond sector, like many others, is facing uncertainty due to broader geopolitical and economic developments.
Trade agreements need to be ratified by European and national parliaments before entering into force. This procedure that usually takes multiple months or sometimes even years
