In a major development for India’s export sector, the recently signed India-UK Free Trade Agreement (FTA) is poised to significantly boost the country’s gems and jewellery exports, setting a new benchmark for bilateral trade in this luxury sector. According to the Gem & Jewellery Export Promotion Council (GJEPC) and industry stakeholders, the FTA is expected to more than double India’s jewellery exports to the United Kingdom, reaching ₹21,183 crore (US$ 2.5 billion) within the next two years.

This comes at a crucial time when Indian exports to traditionally strong markets like the United States and China are witnessing a decline, primarily due to economic headwinds and demand softening. The UK, however, remains a robust and untapped market with import potential exceeding ₹25,000 crore annually, offering a strategic opening for India’s world-renowned craftsmanship and design.

Trade Scenario and Market Impact

In 2024, India exported jewellery worth ₹7,973 crore (US$ 941 million) to the UK. The UK, in turn, imported a total of ₹22,877 crore (US$ 2.7 billion) in jewellery from India and other global suppliers. With the FTA eliminating or significantly reducing tariffs, industry leaders project a surge in Indian exports, with a goal of reaching ₹21,183 crore by 2027.

According to Mr. Kirit Bhansali, Chairman of GJEPC, this FTA will transform the trade landscape, positioning India to leverage its heritage of jewellery design, craftsmanship, and scale of manufacturing. He stated that the deal is not just about numbers but about forging deeper trade ties and collaborative partnerships between India and the UK.

The overall bilateral trade in gems and jewellery is projected to reach ₹59,311 crore (US$ 7 billion), a dramatic increase that underlines the economic and strategic significance of the agreement. This includes not just direct trade but also joint ventures, investments in artisan clusters, and collaborative innovation efforts.

Strengthening Industry Collaboration and Innovation

A key outcome of the FTA is the anticipated collaboration with artisan partners and design houses in the UK. The agreement will allow Indian manufacturers and exporters to work closely with UK-based jewellers, retailers, and designers, creating a fusion of traditional Indian craftsmanship with contemporary global trends.

Mr. Jayant Ranige, Chief Executive of Pure Jewels by Bhanji Gokaldas, a UK-based jewellery house, hailed the agreement as a bridge between legacy and modernity. He emphasized that the FTA would not only improve commercial prospects but also create an avenue to celebrate the shared cultural heritage of India and the UK in the field of jewellery.

The UK jewellery market, valued at over ₹25,419 crore (US$ 3 billion) annually in imports alone, presents a huge growth opportunity for Indian exporters. The streamlined access granted through the FTA enables Indian firms to respond faster to market trends, launch new collections, and integrate more deeply into the European luxury market via UK-based channels.

Key Opportunities Under the India-UK FTA:

• Tariff Reduction: Elimination or reduction of duties on finished jewellery products enhances cost competitiveness.

• Market Access: Better access to UK retail and wholesale networks helps Indian brands expand globally.

• Ease of Doing Business: Simplified trade procedures reduce logistical bottlenecks and improve delivery timelines.

• Artisan Support: Opens doors for more structured artisan exchange programs, joint exhibitions, and product innovation labs.

Socioeconomic Impact in India

The projected increase in exports also implies a positive economic impact on India’s employment and MSME sector. The gems and jewellery industry in India is labour-intensive, employing over 4.5 million people, especially in manufacturing hubs like Surat, Mumbai, Jaipur, and Kolkata.

The FTA will stimulate production activity, creating new jobs in polishing, design, quality assurance, and logistics. With the global demand opening up, Indian jewellery businesses—especially smaller exporters and artisan units—will see enhanced visibility and access to premium markets.

Additionally, the deal is expected to encourage more foreign direct investment (FDI) in India’s gem and jewellery ecosystem, particularly in areas such as:

• Jewellery design schools

• Diamond processing units

• Technology-enabled manufacturing setups

Cultural Diplomacy Through Jewellery

Jewellery has historically played a symbolic role in cultural exchange between India and the UK. From Mughal-era influences on British royal jewellery to modern Indo-Western fusion styles, this sector reflects deep historical ties.

The FTA is being hailed as a vehicle for cultural diplomacy, where handcrafted pieces and heirloom designs from India will be showcased in major fashion shows, trade exhibitions, and art galleries across the UK. It allows the UK audience to experience India’s rich jewellery heritage, blending traditional techniques with modern sensibilities.

Looking Ahead: Industry Outlook

Industry experts believe that with consistent policy support and sustained promotional efforts through GJEPC trade fairs, buyer-seller meets, and digital B2B platforms, India could emerge as the preferred global supplier of high-quality, affordable, and customisable jewellery.

Major jewellery exporters are now preparing to scale up operations, invest in design innovation, and develop collections that cater to UK-specific consumer preferences such as:

• Ethical sourcing and sustainability

• Minimalist luxury

• Personalised jewellery

• Bridal and festive collections tailored for diaspora markets

Conclusion

The India-UK Free Trade Agreement marks a strategic turning point for India’s gems and jewellery sector, offering immense potential to scale up exports to ₹21,183 crore over the next two years. More than just a trade deal, the agreement represents a fusion of commerce, culture, and creativity, providing a global stage for Indian artistry while boosting domestic employment and innovation.

By tapping into the UK’s strong demand and global position as a fashion capital, Indian jewellers are set to redefine global luxury with traditional elegance and modern precision. The path ahead is promising, with FTA-led bilateral trade poised to shape the next chapter of India’s export journey.

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