Swiss Watch Imports To Get Cheaper As India Cuts Duties
5 min read
Starting September 2025, watch enthusiasts in India can expect more accessible Swiss watches as a strip down in duties on Swiss imports will roll out as part of the landmark India-EFTA Trade and Economic Partnership Agreement (TEPA). This is not just an economic development. It’s a cultural milestone, one that redefines how time, luxury, and global trade intersect in the world’s fastest-growing democracy. This move is set to reshape India’s luxury watch market, making high-end timepieces more affordable to Indian consumers.
What’s Changing With This Trade Deal?
On March 10, 2024, after 16 long years of negotiations, India signed a sweeping free trade agreement with the European Free Trade Association (EFTA) - a bloc comprising Switzerland, Norway, Iceland, and Liechtenstein.
Under this pact:
India will progressively eliminate its 22% import duty on Swiss watches over a period of 7 years to zero. With the new agreement, these tariffs will be slashed, leading to lower retail prices and a potential surge in demand. This deal is a major victory for Swiss watchmakers, who have long viewed India as a high-potential but underpenetrated market. With a growing base of affluent consumers, India’s luxury watch sector is poised for further growth.
In exchange, EFTA nations have committed to investing $100 billion into the Indian economy over the next 15 years.
The deal awaits implementation in September 2025, following ratification by all four EFTA parliaments. Switzerland's objection window closes on July 10.
What Does This Mean For Indian Consumers?
Consumers in India can expect price drops of 10-20% initially, with further reductions as duties phase out. With duties slashed, expensive Swiss watch models become price‑aligned with global markets. This shift responds to India’s fastest‑growing Swiss watch imports, fueled by its swelling affluent base and rising disposable incomes.
Swiss brands may expand their retail presence in India, offering a wider selection. Also, as the high import duties have fueled a thriving gray market, the accessible official prices post TEPA implementation could curb this trend.
Why This Matters For Swiss Watch Brands?
For the Swiss watch industry, this is massive. India is no longer a “potential” market, it is a priority. According to the Federation of the Swiss watch industry FH, in 2024, Swiss watch exports to India grew by nearly 25%, reaching CHF 273.9 million. The first quarter of 2025 alone has seen the exports to India reach CHF 80.1 million as compared to CHF 72.5 and 62.7 million respectively for 2024 and 2023. That’s a 10.5% increase in 2025 over the same period last year. As the 21st largest importer of Swiss watches globally, with that ranking expected to improve dramatically post-TEPA, India is projected as a major importer for Swiss watches with a potential to surpass even the conventional high-import markets such as Turkey, Canada and Saudi Arabia.
Luxury watchmaker brands like Rolex, Omega, Jaeger-LeCoultre, Breitling, and Panerai are already recalibrating their India strategies. Many mono-brand boutiques have opened across Mumbai, Delhi, and Bengaluru, and more are on the way. For these brands and others as well, the tariff reduction is a favorable impetus to leverage better sales in India over the coming years. The new duty cuts will definitely help convert rising demand into deeper market footholds for many Swiss watch brands.
India’s Luxury Market On The Rise
This move comes at a time when India's luxury economy is booming. A growing base of High Net-Worth Individuals (HNIs) and affluent millennials are driving premium purchases. A July 2024 survey by Deloitte found that 78% of affluent Indians plan to buy a luxury watch in the near future. Also, the pre-owned luxury watch market is exploding, with over 50% of respondents in the survey open to buying used high-end timepieces.
As duties drop, Swiss watches will become competitively priced, aligning more closely with Europe, the UAE, and Singapore - places where Indian buyers previously preferred to shop. This shift will also challenge India’s grey market and increase sales through official retail channels, boosting both consumer confidence and after-sales service standards.
Broader Deal Impacts
The trade pact isn’t just about watches, it’s part of a broader $100 billion investment commitment from EFTA nations over 15 years. For Switzerland, it means easier access to one of the world’s fastest-growing luxury markets. For India, it signals a push toward boosting high-end retail and manufacturing. India’s minister of commerce & industries, Piyush Goyal confirmed that in return for tariff relaxations, EFTA has pledged $100 billion in direct investments, aimed at sectors such as pharmaceuticals, cybersecurity, clean energy, and manufacturing.
This TEPA marks India’s first pact featuring a direct investment‑for‑duty swap, streamlining economic cooperation.
In Summary
The strong GDP growth, rising HNWI numbers, and millennial interest in investment-grade timepieces are fueling a booming luxury-watch market in India. The lowering of duties will achieve a surge in consumer appeal as well as a subsequent investment in retail. The India‑EFTA deal marks a transformative shift for luxury retail and a potent catalyst to expand India’s luxury-lifestyle economy.
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