India has become a top 15 destination for Swiss luxury watches, with import values climbing to 168.7 million Swiss francs in the first half of 2026. This growth is driven by a rise in first-time luxury buyers and the impact of the India-Switzerland trade agreement. Retailers like Ethos are expanding their networks to tap into this increasing appetite for high-end timepieces.
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India has emerged as a significant growth market for the Swiss watch industry, officially breaking into the top 15 global export destinations for Swiss timepieces. During the first half of 2026, the country imported 200,000 Swiss watches, a 37% increase in volume compared to the same period last year. In terms of value, imports rose by over 31% to reach 168.7 million Swiss francs, which is approximately ₹1,991 crore. This performance is notable as it occurs while global exports for the Swiss watch industry have seen a marginal decline of 0.7%.
Impact of the Trade and Economic Partnership Agreement
A major factor supporting this trend is the India-Switzerland Trade and Economic Partnership Agreement (TEPA). Effective since October 2025, the trade pact has begun to reduce tariffs on Swiss imports. By lowering duties, the agreement has made high-end luxury goods more accessible, directly benefiting global watch brands and their Indian retail partners. Industry data indicates that while currency volatility and the rising cost of precious metals used in watch manufacturing have influenced the overall import value, the actual volume of units sold confirms a genuine expansion in market demand.
Wealth Growth and Retail Expansion
The surge in demand is not just from established collectors but significantly from a growing base of first-time luxury buyers. Market analysts have noted that increasing personal wealth and the rising purchasing power of the middle class in India are the primary drivers. Retail networks are responding by scaling up their presence to capture this move toward higher-value products. For instance, the luxury watch retailer Ethos has expanded its footprint to over 100 stores, reflecting the increased confidence brands have in the Indian retail environment.
Growth in Premium Segments
While the luxury segment is seeing broad growth, the most rapid gains are occurring in watches priced above ₹10 lakh, followed by the ₹5-10 lakh category. Many Indian consumers are increasingly viewing premium watches as investment assets, which has supported sales growth even at higher price points. Global brands like TAG Heuer, Tissot, and Rado are reportedly prioritizing India by allocating more expensive models to the domestic market to satisfy this demand.
Looking ahead, the sustainability of this growth will depend on whether consumer demand remains steady despite potential fluctuations in luxury spending patterns. Investors may track how major luxury retailers continue to manage their store expansion costs and whether the ongoing reduction in tariffs under the TEPA continues to support profit margins for distributors and retailers in the coming quarters.