UK India Pact Opens Tariff Free Floodgates for Indian Jewellery

Gems News: Historic Trade Deal Ushers in New Era for Indian Jewellery Exports In a landmark move poised to reshape global jewellery commerce, the United Kingdom and India officially signed the Comprehensive Economic and Trade Agreement (CETA) on July 24, 2025. The deal eliminates import duties on Indian gems and jewellery entering the UK market, setting the stage for a dramatic surge in exports and bilateral trade. The agreement, hailed as a historic milestone, was signed at Chequers by UK Prime Minister Sir Keir Starmer and Indian Prime Minister Shri Narendra Modi.

Jewelry from India will soon be flooding the UK markets
Image Credit: AI-Generated

Under this agreement, nearly 99 percent of Indian exports will now enjoy zero-duty access to the UK—one of the world’s most competitive and mature luxury markets. For Indian jewellers, the removal of the 2.5–4 percent import duty is a game changer, instantly enhancing their competitiveness against rival Asian markets like Thailand and Malaysia. According to the Gem & Jewellery Export Promotion Council (GJEPC), this Gems News report finds that India’s jewellery exports to the UK could skyrocket from the current $941 million to $2.5 billion within just three years.

Bilateral Trade Set to Double as Industry Leaders Applaud the Pact

During the signing ceremony, UK Trade Secretary Jonathan Reynolds reinforced the commercial and diplomatic value of the agreement by presenting a symbolic coffee-table book and engaging in closed-door talks with Indian counterparts. Among the select 20-member Indian business delegation was GJEPC Chairman Mr. Kirit Bhansali, who expressed immense pride in representing the Indian gem industry at this historic moment. Mr. Bhansali emphasized that the deal unlocks exciting opportunities for Indian manufacturers, MSMEs, and artisans. “This transformative FTA will stimulate growth across the value chain — from mining and cutting to intricate design and export. It is a tribute to the Hon’ble Prime Minister’s vision of making ‘Design in India’ a global standard,” he said.

The new jewellery trade pact signed between India and UK
Image Credit: GJPEC

The UK has long been a high-value destination for Indian jewellery, and in 2024 alone, India exported $941 million worth of gems and jewellery to Britain. Imports from the UK stood at $2.7 billion, making the sector’s total bilateral trade approximately $3.6 billion. With the new tariff-free access, this figure is expected to double to $7 billion within two years.

Design in India Vision Gains Momentum in Global Luxury Markets

As part of the UK–India Reception, a special jewellery collection titled Indian Crafts Reimagined was unveiled, celebrating the country’s traditional artistry including filigree, Meenakari, enamelling, Kashmiri architecture, and Warli motifs. This curated showcase reflects the government’s intent to push Indian craftsmanship to the forefront of global luxury.

The agreement not only boosts Indian jewellery’s visibility but also paves the way for deeper collaboration in retail, trade, and cultural exchange between the two nations. It’s a timely development as India forges similar FTAs with other key consumer markets, creating a ripple effect across the global luxury landscape.

The removal of tariffs doesn’t just signify financial savings—it marks India’s elevation as a preferred sourcing destination for finely crafted jewellery. For the UK, it provides direct access to some of the world’s most intricate, hand-crafted pieces, rich with heritage and tradition. Both sides stand to benefit, but it’s India’s jewellery sector that is poised for a golden renaissance on the world stage.

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