India is set to change the face of its luxury retail landscape significantly. Come September 2025, the country will begin slashing the 22% duties currently imposed on Swiss watch imports. This major shift will come with the enforcement of the long-negotiated India-EFTA trade agreement.
Earlier this week, India’s Minister of Commerce & Industry, Mr Piyush Goyal, confirmed that the agreement with the European Free Trade Association (EFTA)—comprising Switzerland, Norway, Iceland, and Liechtenstein—could be implemented as early as September. The duty reduction on Swiss watches will be staggered over a period of seven years, eventually bringing it down to zero.
The trade deal, signed in March 2024 after 16 years of negotiations, has now been ratified by all four European countries involved as of June 11. The final step is a public objection period in Switzerland, which ends on July 10.
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India, now the world’s fourth-largest economy, will offer enhanced market access to EFTA countries across a broad spectrum of sectors, including high-value luxury goods like watches. In exchange, the EFTA bloc has committed to invest $100 billion in India over the next 15 years, reinforcing the long-term strategic importance of the partnership.
For the Swiss watch industry, the timing couldn’t be better. With economic uncertainty and trade barriers dampening demand in key markets like the U.S. and China, India has emerged as a crucial growth market. According to data from the Federation of the Swiss Watch Industry (FH), exports to India surged by 25.2% in 2024, reaching CHF 274 million. The momentum has continued into 2025, with Q1 exports rising by 10.5% year-on-year.
Luxury retail analysts have identified India as a rising star in global watch consumption. The nation has seen an uptick in its high-net-worth population and now boasts the third-largest number of billionaires globally. This affluence is translating into stronger demand for high-end timepieces, prompting top Indian retailers to expand into Tier 2 and Tier 3 cities.
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The Swiss watch industry has welcomed the impending duty cuts, seeing it as a long-term win in a market with deep growth potential. With import costs decreasing gradually, the expectation is that premium and luxury timepieces will become more accessible to India’s aspirational consumers—particularly those exploring their first entry into the world of haute horology.
The move mirrors India’s broader trade strategy aimed at giving its luxury consumer base more access. Earlier this summer, the country signed a trade pact with the United Kingdom to ease import duties on British luxury cars and alcoholic beverages.
As India positions itself as a global luxury consumption hub, the reduction in watch duties marks more than a policy change—it signals a cultural shift in how luxury is consumed, displayed, and valued.
