India’s new trade agreement with the European Free Trade Association (EFTA) is set to reshape the country’s luxury retail landscape, with Swiss watchmakers poised to benefit the most, The Times of India reported on October 20 based on statements by Adrian Bosshard, Chief Executive Officer of Rado, one of Switzerland’s leading luxury watch brands. The deal, which will gradually bring down basic customs duty on Swiss watches to zero over seven years, is expected to make premium timepieces more competitively priced and accessible to India’s growing pool of affluent consumers.Bosshard, said the move will significantly strengthen the company’s position in India — now its largest market, surpassing both China and the United States. “When you take out high taxes from a product, it’s definitely an advantage. It becomes easier to buy luxury goods,” he said, adding that the reduction in duties will also cushion exporters from losses arising out of currency fluctuations.
For Rado, the Indian market has become a major growth engine, Bosshard told ToI’s Asmita Dey. The company has been recording double-digit growth annually, driven by a wider consumer base that now includes younger buyers entering the luxury segment for the first time.
“More and more Indians can afford our watches due to rising purchasing power,” Bosshard said, adding. “India has a young, ambitious and hard-working population that is entering the luxury market.”
The brand’s popularity has deepened across segments. Traditional patrons continue to buy its high-end models, while younger professionals are gravitating towards its entry-level collections, priced around ?1 lakh. These first-time luxury consumers view watches not merely as instruments of timekeeping, but as markers of achievement and personal style.
Even Rado’s premium lines, such as the Captain Cook range priced above Rs 2 lakh, have found steady takers among India’s younger demographic. Bosshard said the company saw robust pre-Diwali sales in September and expects this trend to continue through October, typically the strongest period for luxury retail in India.
The timing of the EFTA trade pact could not be more crucial. Luxury brands have long cited India’s high import duties — up to 20% on watches — as a key barrier to expansion. The phased elimination of these taxes could align India’s retail environment more closely with global shopping destinations like Dubai and Switzerland, where low-tax policies encourage luxury spending.
While India offers optimism, the picture remains mixed elsewhere. Bosshard noted that the Chinese market continues to pose challenges, though it is showing signs of stabilisation.
Meanwhile, in the United States, Rado faced an unexpected jolt when tariffs on Swiss imports were raised to 39%, compared with the European Union’s 15%.
“That came as a big shock,” Bosshard admitted. However, the brand mitigated the immediate impact by building up local inventory before the tariff hike took effect. Despite raising prices, Rado’s sales in the US have remained stable, supported by the market’s size and purchasing power.
