On July 24, 2025, India and the United Kingdom signed a landmark Free Trade Agreement (FTA), opening new avenues for Indian exporters, particularly in the gems and jewellery sector.
With India’s current gems and jewellery exports to the UK valued at US$ 941 million, including US$ 400 million from jewellery alone, the FTA is set to capitalize on the UK’s US$ 3 billion annual jewellery import market. This agreement, signed in the presence of Hon’ble Prime Ministers Shri Narendra Modi and Keir Starmer, is poised to transform India’s jewellery industry by doubling exports and fostering economic growth.
India’s jewellery exports to the UK, encompassing natural or cultured pearls, precious or semi-precious stones, precious metals, have shown a promising upward trend. Starting at US$ 526 million in 2020, the value rose to US$ 964 million in 2021, reflecting early growth. A slight decline to US$ 700,514 occurred in 2022, followed by a recovery to US$ 617 million in 2023.
The most notable increase came in 2024, reaching US$ 941 million, highlighting India’s growing influence in the UK market. This surge, driven by demand for exquisite craftsmanship, lays a strong foundation for the FTA’s anticipated boost.
Diverse product strength
India’s jewellery exports to the UK boast a rich variety, with articles of jewellery and parts other than silver leading at 33%, showcasing the industry’s innovative designs. Silver holds a significant 32% share, underscoring its popularity. Additionally, silver in forms plated with gold or platinum and semi-manufactured variants contribute 17%, while worked diamonds (excluding industrial types) account for 12%. Articles of jewellery and parts, whether or not plated or clad with other metals, make up 6%. This diverse portfolio highlights India’s versatility and expertise, positioning it well to leverage the FTA.
Boosting exports: Tariff relaxations under the FTA
The cornerstone of the FTA lies in its tariff relaxations, projected to double India’s gems and jewellery exports to the UK within the next 2-3 years. By eliminating or reducing customs duties, the agreement lowers the cost of Indian products, making them highly competitive against global rivals. The UK’s substantial US$ 3 billion jewellery import market presents a golden opportunity, and industry leaders are optimistic about capturing a larger share. This growth is expected to spur investments in advanced manufacturing technologies and skilled craftsmanship, enhancing India’s export capacity.
The signing of the FTA has been widely covered, with reports emphasizing its economic significance. The agreement is seen as a strategic step to deepen Indo-UK ties, with the jewellery sector playing a pivotal role. Simplified trade procedures and reduced tariffs are anticipated to benefit small and medium enterprises, enabling them to scale operations and access international markets. This move aligns with global trends toward bilateral trade enhancement, positioning India as a key player in the luxury goods sector.
Economic and industry impact
The FTA’s impact extends beyond immediate export growth. It is expected to create thousands of jobs, particularly in jewellery hubs like Jaipur, Surat, and Mumbai, where artisans and manufacturers thrive. The influx of orders from the UK could encourage the adoption of sustainable practices, aligning with the growing demand for eco-conscious products among British consumers. This shift may elevate India’s brand reputation, attracting premium buyers and boosting long-term profitability.
Moreover, the agreement fosters innovation. With access to a larger market, Indian firms are likely to invest in design and technology, blending traditional techniques with modern aesthetics. This evolution could position India as a trendsetter in the global jewellery industry, challenging established markets like Europe and the Middle East. The presence of Hon’ble Prime Ministers Shri Modi and Mr. Starmer at the signing ceremony underscores the political will to support this transformation, signaling a commitment to mutual prosperity.
Challenges and Opportunities
While the outlook is promising, challenges remain. Indian exporters must navigate stringent UK regulations on quality, sustainability, and labor practices. Meeting these standards will require significant investment and training. However, this also presents an opportunity to upgrade infrastructure and enhance competitiveness. Government support through subsidies and export incentives could further ease this transition, ensuring the sector maximizes the FTA’s benefits.
In conclusion, the India-UK FTA signed on July 24, 2025, marks a transformative chapter for India’s jewellery exports. With a robust export value of US$ 941 million, a clear growth trend, and a diverse product range, the industry is well-positioned to double its UK market presence. Tariff relaxations, job creation, and innovation opportunities underscore the agreement’s potential. As India leverages its rich heritage and skilled workforce, this deal promises to illuminate the global stage with Indian craftsmanship.
