India-UK FTA to push gem and jewellery exports from USD 400 mn to USD 1 bn: GJEPC

By Admin

31 May, 2025

As the final touches are being put on the proposed India-UK Free Trade Agreement (FTA), the Indian gem and jewellery industry is poised for a transformative leap. With the anticipated elimination of 99 percent of tariffs on Indian goods, the FTA is expected to significantly enhance exports, marking a new chapter for Indian jewellers in the global arena.

Tariff Elimination to Unlock Major Export Growth

The Gem and Jewellery Export Promotion Council (GJEPC) projects a steep increase in Indian jewellery exports to the United Kingdom from the current USD 400 million to a staggering USD 1 billion. More broadly, total gem and jewellery exports to the UK are expected to reach USD 2.5 billion within two years of the agreement’s implementation. This growth will be driven by the increased competitiveness of Indian products once tariff barriers are removed.

High-Value Products Take the Lead

Historically, Indian exports of high-value products such as gold and diamond-studded jewellery have been hindered by significant duties. The removal of these tariffs is set to unleash the full potential of these product categories. GJEPC Chairman Kirit Bhansali emphasized that the demand for gold and diamond jewellery in the UK is already strong, and the FTA will allow Indian exporters to scale up and meet this demand more effectively.

Beyond gold and diamonds, Bhansali also highlighted silver jewellery and coloured gemstones as areas with growing consumer interest. These segments offer an opportunity to diversify export portfolios and capture emerging trends in the UK market.

A Gateway for New Brands and Start-ups

The agreement is also seen as a strategic opening for new and emerging Indian jewellery brands. With reduced entry barriers, start-ups and small-scale exporters are exploring opportunities in the UK by investing in market research and customizing offerings to align with local preferences and regulations.

Operational Challenges Remain

Despite the optimism, industry stakeholders caution that certain operational and regulatory hurdles must be addressed. In 2024, India’s jewellery exports to the UK stood at USD 941 million, underscoring the UK’s importance as a trade partner. However, stringent hallmarking standards and complex documentation requirements continue to challenge exporters especially those new to the market.

To fully capitalize on the FTA, the establishment of robust support infrastructure is essential. Assistance with regulatory compliance, hallmarking standards, documentation, and the development of efficient distribution networks will be crucial in empowering smaller exporters and ensuring long-term sustainability.

Conclusion

The India-UK FTA represents a pivotal opportunity for India's gem and jewellery sector. With projections of exponential growth, particularly in high-value segments, and an open gateway for emerging players, the agreement could redefine India's export dynamics. However, sustained success will depend on addressing operational challenges and supporting all tiers of exporters to navigate and thrive in the evolving UK market.