India-Swiss Trade Deal: A Win for the Watch Industry?
By Shilpa Dhamija26 septembre 2024
India will phase out import tariffs on Swiss watches from 22% to 0% following the ratification of a trade agreement with the European Free Trade Association (EFTA). This move is expected to unlock vast growth potential for the watch industry in one of the world’s fastest-growing economies. How does India stand to gain?
On March 10th, 2024, a significant milestone was marked in international trade as India signed its first-ever free trade agreement (FTA) with a European partner. After 16 years of negotiations, the European Free Trade Association (EFTA)—comprising Switzerland, Norway, Iceland, and Liechtenstein—signed an FTA with India, home to 1.45 billion people, the world’s most populous country, to strengthen bilateral trade.
A key provision in this deal is the gradual reduction of India’s import tariffs on Swiss watches from 22% to 0%, in seven equal annual instalments, starting from the agreement’s enforcement date.
The significance of Indo-Swiss trade relations
India has become a crucial growth market for luxury and premium watch brands, driven by the rising spending power of its affluent population. In 2023, India imported CHF 219 million worth of watches. Though this accounted for less than 1% of global Swiss watch exports, the growth trajectory is notable—India saw a 39% increase in Swiss watch imports by value compared to 2021.
Overall, India is Switzerland’s 7th largest global trading partner with gold accounting for about 80% of India’s Swiss imports. However, gold trade was excluded from the FTA.
Pour continuer à lire cet article, abonnez-vous maintenant
CHF 10.- par mois / CHF 99.- par année
- Accès illimité à tous les contenus payants
- Des analyses approfondies sur l'industrie du luxe que vous ne trouverez nulle part ailleurs.
- Des études et rapports sur les principaux défis à venir ainsi que leur décryptage.
- Des articles académiques élaborés par des professeurs et des doctorants membres du Swiss Center for Luxury Research, ainsi qu’un certain nombre d’universités à l’étranger.
- Des événements réservés aux membres pour enrichir vos connaissances et votre réseau.
Partager l'article
Continuez votre lecture
Watch industry: Deloitte study predicts a booming in India
The latest Deloitte Swiss Watch Industry Study, released on Thursday 12 October, analyses a decline in optimism among industry professionals. The causes are the complex geopolitical situation, inflation and the rising cost of living. The watch industry is now betting on India as the next growth market.
Luxury goods: as the geopolitical situation worsens, hopes turn to India
The latest Deloitte Swiss Watch Industry Study, published on Thursday, October 12, comes out in a tense geopolitical context, with the world still reeling from […]
S'inscrire
Newsletter
Soyez prévenu·e des dernières publications et analyses.