India to Slash Duties on Swiss Watch Imports from September

Earlier this week, Mr. Piyush Goyal, India’s minister of commerce & industries announced that the EFTA trade agreement could come into force as soon as September, paving the way for stronger bilateral trade with the EFTA nations. India currently imposes 22% duties on Swiss watch imports, which will be gradually phased out to zero, over a period of 7 years.

Last year, in March, India signed a trade agreement with the European Free Trade Association (EFTA) that comprises of Switzerland, Norway, Iceland, and Liechtenstein, after 16 years of negotiations. Since then the agreement has been awaiting ratification by parliaments of all four European nations. While the ratification process is now complete, there is only the objection period open for the Swiss public until 10th July.

India is currently the fourth largest economy in the world. As part of this trade agreement, India will grant greater market access to EFTA countries by reducing import duties on a broad range of their exports. In return, India will receive investments of $100 billion in a span of 15 years from the EFTA bloc.

The implementation of this trade agreement will come as a relief for the Swiss watch industry given that India is among its most significant growth markets. Especially at a time when two of its top markets - the U.S. and China - are reeling from hefty tariffs and stagnant economic conditions.

Growing demand for Swiss watches in India

In the first quarter of 2025, Swiss watch exports to India grew by 10.5% compared to the same period last year, according to data from Federation of the Swiss Watch Industry (FH). In 2024, annual exports to India grew by 25.2% year-on-year to approximately CHF 274 million, making it the fastest growing market for Swiss watch exports. Industry experts have told Luxury Tribune that India is set for continued double digit growth in premium and luxury watches. To keep up with this rising demand, India’s leading retailers are expanding their presence into smaller yet potential wealth hubs across the country.

In the last few years, India has noted a consistent rise in its wealthy population. India now has the third largest population of billionaires in the world. As demand for luxury goods and services rises in India, the country signed another trade agreement with the United Kingdom, earlier this summer, giving preferred access to luxury cars and alcoholic beverages brands form the UK into the country, through reduced import duties.