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May 1, 2026 · Economy

Import Duties on Swiss Watches in India: What Changed in 2026

India’s import duty on Swiss watches dropped to 15.71 percent in January 2026, the second step in a programme that ends at zero by 2031. Here is what changed, and what it means for buyers, brands, and the broader Indian luxury watch market.

Eva Winterer

In January 2026, India’s import duty on Swiss watches dropped from 18.86 to 15.71 percent. This is the second annual reduction under the Trade and Economic Partnership Agreement between India and the European Free Trade Association, in force since October 2025. The schedule continues in equal annual steps, reaching zero by January 2031. Each step is precisely calibrated, with a clear endpoint and a structural logic that distinguishes it from short-term policy adjustments.

The full TEPA tariff schedule

Before TEPA, Swiss watch imports into India faced a duty of 22 percent. The reduction follows a seven-year programme.

NEW GEOGRAPHIES · THE SILENT LUXURY

India’s tariff path to zero

Swiss watch import duties under TEPA, 2024 to 2031

22%

18.86%

15.71%

12.57%

9.43%

6.28%

3.14%

BeforeTEPA

Oct2025

Jan2026

— NOW —

Jan2027

Jan2028

Jan2029

Jan2030

Jan2031

A counter-trajectory: US duties on Swiss watches in 2025

39%

The schedule was the result of sixteen years of negotiation between India and EFTA, signed in March 2024 and ratified in October 2025. It runs in the opposite direction from US trade policy, which imposed 39-percent duties on Swiss watches in 2025 before partially reversing course.

What the duty cut means for prices in India

The immediate effect on consumer prices is moderate. Most Swiss watch brands operate on globally aligned retail pricing, which means that a Rolex Submariner or a Patek Philippe Nautilus does not become structurally cheaper in Mumbai because the duty fell. Brands absorb part of the reduction into margin recovery and reinvestment in retail infrastructure. The visible effect for buyers is access, not discount.

The deeper effect is structural. Lower duties reduce the incentive for grey-market purchasing abroad. Buyers who previously acquired watches in Dubai, Singapore, or Switzerland to avoid the 22-percent duty now find official Indian retail competitive on convenience, warranty, and authentication. This formalises the Indian luxury watch market.

Boutique expansion as the second-order effect

Swiss brands are responding with capital investment. Rolex, Patek Philippe, Audemars Piguet, IWC, and Vacheron Constantin are expanding monobrand boutique presence in Mumbai and Delhi. Bengaluru and Hyderabad are emerging as the next-tier targets, supported by the World Economic Forum’s documentation of consumer growth decentralising across India’s Tier II and Tier III cities. This forms part of the Swiss watch industry’s broader strategic repositioning following the contraction of Chinese demand.

The wider market context confirms the trajectory. Swiss watch exports to India grew 25.2 percent in 2024 and held the position of fastest-growing market globally in 2025, against a worldwide contraction of 1.7 percent. The full picture, including the cultural and consumer-behaviour shift behind the policy change, is laid out in the analysis of India’s luxury watch market and the new geographies of power.

What you need to know about Swiss watch import duties in India

India’s import duty on Swiss watches falls in equal annual steps from 22 percent before October 2025 to zero by January 2031, under the Trade and Economic Partnership Agreement between India and the European Free Trade Association. The reduction reshapes pricing structures, retail strategy, and consumer behaviour across the Indian luxury watch market. The questions below address the most common enquiries from buyers, brands, and market analysts.

When will Swiss watch import duties in India reach zero?

Swiss watch import duties in India will reach zero in January 2031, under the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association. The schedule moves in seven equal annual steps: 18.86 percent in October 2025, 15.71 percent in January 2026, 12.57 percent in 2027, 9.43 percent in 2028, 6.28 percent in 2029, 3.14 percent in 2030, and zero in January 2031. Each step represents a 3.14-percentage-point reduction from a starting duty of 22 percent.

Will Swiss watches become cheaper in India because of TEPA?

Consumer prices for Swiss watches in India are unlikely to drop dramatically in the short term. Most Swiss watch brands operate on globally aligned retail pricing, which means the duty reduction is absorbed into margin recovery, retail infrastructure investment, and boutique expansion rather than passed through as discounts. The visible effect for buyers is improved access: stronger official retail presence in Mumbai, Delhi, Bengaluru, and Hyderabad, better warranty and authentication, and a gradual decline in incentive for grey-market purchasing abroad. The deeper effect is structural formalisation of the Indian luxury watch market.

Which Swiss watch brands are expanding boutique presence in India under TEPA?

Rolex, Patek Philippe, Audemars Piguet, IWC, and Vacheron Constantin are expanding monobrand boutique presence in India under the new tariff regime. Mumbai and Delhi are the primary expansion centres, with Bengaluru and Hyderabad emerging as next-tier targets. The expansion is part of the Swiss watch industry’s broader strategic repositioning following the contraction of Chinese demand, and reflects India’s emergence as the fastest-growing global luxury watch market in 2025.

How does India’s tariff schedule compare to US trade policy on Swiss watches?

India and the United States are moving in opposite directions on Swiss watch tariffs. While India is reducing duties from 22 percent to zero between 2025 and 2031 under TEPA, the United States imposed 39-percent duties on Swiss watches in 2025 before partially reversing course. The contrast positions India as the structurally most stable growth corridor for Swiss watch brands navigating a contracting Chinese market and a volatile US one.