Jaipur: The India–European Union Free Trade Agreement (FTA) is set to unlock new opportunities for Rajasthan’s gems, jewellery and textile sectors, with exporters in Jaipur expecting a gradual rise in European orders as import duties are phased out.Exporters noted that Europe has so far remained a smaller market due to 2–4% import duties, which eroded price competitiveness for handcrafted jewellery. Meanwhile, steep 50% US tariffs squeezed exports, hitting labour-intensive businesses hard.Rajiv Arora, president of the Federation of Rajasthan Exporters, said the FTA will help offset a 44% decline in shipments to the US by opening the 27-nation EU market. “Diversification reduces reliance on the US and helps regain lost share,” he said, adding that reduced tariffs will allow Indian manufacturers to compete more effectively with rivals already enjoying preferential access.Industry estimates suggest Rajasthan contributes $500–800 million annually to India’s EU-bound gem and jewellery exports, with Jaipur accounting for a major share. In garments, the EU already absorbs nearly 40% of Rajasthan’s exports, a figure expected to rise significantly under the new pact.Rakshit Poddar, president of Garment Exporters of Rajasthan, said, “After nearly 2 decades of waiting, the India–EU FTA finally became a reality. For Rajasthan’s apparel industry, this brings confidence, growth and jobs.”Jaipur, home to a large base of MSMEs in both readymade garments and gems and jewellery, is expected to benefit from the agreement.The FTA is also expected to accelerate design innovation and compliance in the readymade garment segment, as European buyers increasingly insist on traceability, responsible sourcing and low-carbon manufacturing. Many units in Jaipur are already investing, including in solar power, waste recycling and certified supply chains.
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