Surat: The city’s gem and jewellery trade has turned upbeat with the India-UK Free Trade Agreement (FTA) set to come into force on July 15, bringing duty-free access for a range of gem and jewellery products to the UK market.Signed in July 2025, the agreement will eliminate UK import duties that currently range from 2.5% to 4%, depending on the product category. Trade participants and exporters believe the removal of these levies will improve price competitiveness for Indian products in the UK and open up space for larger order volumes across jewellery, diamonds and other segments.Projections by the Gem and Jewellery Export Promotion Council (GJEPC) indicate that in 2024 India’s exports of gems and jewellery to the UK were around $941 million, including about $400 million in jewellery alone. Imports from the UK stood at $2.7 billion, taking total bilateral trade in the sector to $3.6 billion. With the FTA in effect and the UK relaxing duties on jewellery, India’s jewellery exports are projected to rise to $1 billion, while total gem and jewellery exports are expected to increase to $2.5 billion over the next two years. Bilateral trade in the segment is forecast to nearly double to about $7 billion.Industry representatives expect gains beyond export numbers. The India-UK partnership is projected to generate more than 1.4 lakh new jobs, directly supporting artisans, manufacturers and exporters across major jewellery clusters.“The FTA will reduce trade barriers, streamline logistics, and ensure that Indian jewellers can serve global consumers with greater competitiveness. This will ensure that gem and jewellery manufacturers are better positioned compared to other manufacturing hubs in the world,” said Dinesh Navadiya, chairman, Indian Diamond Institute (IDI).Navadiya added that earlier Indian exporters often depended on routing through other countries that enjoyed lower duties in the UK, but the agreement now strengthens India’s position as an end-to-end manufacturing hub, from gems to finished jewellery.
