India-UK FTA to push Gem & Jewellery exports from USD 400 million to USD 1 billion: GJEPC
NEW DELHI : The proposed India-UK Free Trade Agreement (FTA), currently in final negotiation stages, is positioned to substantially enhance Indian gem and jewellery exports through the elimination of 99 percent of tariffs on Indian goods.
The Gem and Jewellery Export Promotion Council (GJEPC) projects jewellery exports to the United Kingdom will increase from the current USD 400 million to USD 1 billion, with total gem and jewellery exports anticipated to reach USD 2.5 billion within two years of the agreement’s execution.
These projections reflect substantial growth potential in high-value product categories that have traditionally faced tariff barriers.
Industry leaders identify gold and diamond jewellery as primary growth drivers in the UK market.
Kirit Bhansali, Chairman, GJEPC, noted that gold and diamond-studded jewellery are expected to benefit from strong consumer demand and established market preferences, while opportunities also exist in silver jewellery and coloured gemstones segments to diversify export portfolios and capitalise on emerging market trends.
The agreement presents particular opportunities for emerging brands and start-ups seeking market entry.
Companies preparing for UK market entry are conducting comprehensive market analysis to ensure effective adaptation to local conditions.
Despite industry optimism, stakeholders have identified operational challenges that may impact the long-term benefits of the trade agreement.
India’s jewellery exports to the UK reached USD 941 million in 2024, yet meeting UK hallmarking standards and managing documentation requirements present challenges, particularly for new market entrants unfamiliar with regulatory frameworks.
The implementation of effective support infrastructure is viewed as critical for enabling smaller exporters and new entrants to navigate regulatory requirements, establish distribution networks, and compete effectively in the UK market while maintaining compliance with local standards and consumer expectations.
