Following the implementation of the deal, India’s jewellery exports to the United Kingdom (UK) are expected to grow to USD one billion, experts say
With the signing of the Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom, tariff relaxations are expected to double India’s gems and jewellery exports to the UK over the next two to three years. With Ceta securing duty-free access for 99 per cent of India’s exports, the FTA opens up a large market, as the UK imports approximately USD three billion worth of Jewellery annually.
India’s total gems and jewellery (G&J) exports to the UK are valued at USD 941 million, with USD 400 million coming from Jewellery, as per the official data. With the duty concessions in place, this figure is poised to surge to USD 2.5 billion within the next three years, the Gems and Jewellery Export Promotion Council said in a statement. The imports from the UK stood at USD 2.7 billion, bringing bilateral trade in the sector to USD 3.6 billion, GJEPC added.
“Currently, India’s jewellery exports to the UK are worth USD 400 million and have the potential to grow to USD one billion post the implementation of this deal. With the UK being one of our key export markets, the removal of nearly all tariffs on exports, particularly on high-value products like gold, diamond-studded jewellery and lab-grown diamonds, will provide a significant competitive edge to Indian jewellery exporters,” highlighted Colin Shah, Managing Director, Kama Jewelry.
Enhancing Price Competitiveness
With the FTA further strengthening our position in western markets where demand for certified, intricately designed gold jewellery continues to be on the rise, experts noted that removing the 2.5 per cent to 4 per cent import duty on finished gold jewellery significantly enhances the price competitiveness of Indian products in the UK market.
“We expect this to drive a 30 to 40 per cent increase in jewellery exports to UK market over the next 2-3 years driven by increased demand from both brick and mortar stores as well as ecommerce platforms in the UK as Indian made jewellery is in high demand,” explained Mangesh Chauhan, MD and Chief Financial Officer (CFO), Sky Gold and Diamonds.
The major exporters of jewellery to the UK are Switzerland, the United Arab Emirates (UAE), India, France, and Hong Kong. The India-UK FTA benefits India with a nil duty structure as compared to a duty and value-added tax (Vat) on jewellery products from competing nations, Crisil Ratings highlighted.
Key Beneficiary Categories
The FTA will especially benefit lightweight gold jewellery, bridal collections, hallmark-certified pieces and everyday-wear designs, segments where Indian craftsmanship shines and price sensitivity matters. Experts emphasised that the UK jewellery market shows strong demand for elegant, affordable jewellery with cultural resonance, especially among the Indian diaspora
“The UK’s preference for diamond-studded jewellery will benefit polished diamond exports, which were at USD 155 million in fiscal 2025. Jewellery exports from India, contributing over 40 per cent of the total USD 941 million exports, will continue to grow. Furthermore, certified bullion imports by India, ensuring higher authenticity of the metal, will increase, thus boosting the overall India-UK trade,” stated Rahul Guha, Senior Director, Crisil Ratings.
Given the UK’s tilt toward affordable luxury and ethical sourcing, lab-grown diamond pieces in minimalist, everyday wear categories like studs, stackable rings, and charm bracelets will thrive, the experts pointed out.
“The UK has traditionally embraced 9KT gold jewellery, and with India now mandating hallmarking for 9KT as well, there will be a surge in domestic production tailored to this market. This shift will not only lead to cost efficiencies but also elevate design capabilities aligned with UK preferences,” noted Namita Kothari, Founder at Akoirah by Augmont.
Tightening Infrastructure, Policy Gaps
While the agreement will generate more employment opportunities in India, especially in regions where jewellery making is a major livelihood, it will also help smaller jewellery brands, especially those working with lab-grown diamonds, silver and colourful gemstones to get into the competitive space by empowering them to export their offerings to the UK.
However, to truly harness the benefits of the India–UK FTA, experts highlighted that we must address several systemic and infrastructure challenges. This includes expanding hallmarking centres and making certification processes more accessible, particularly for micro, small and medium enterprises (MSMEs).
Chauhan noted that there is a need to modernise export clearances to reduce lead times and enhance compliance efficiency. Strengthening port-side logistics hubs to support faster fulfilment cycles, which are vital for export-driven businesses, also becomes crucial. Chauhan added that we need to upskill artisans and designers in global jewellery trends, sustainability norms, and ethical sourcing to meet UK standards.
Challenges For MSMEs?
While the FTA opens doors, experts noted that MSME jewellery exporters face practical hurdles in meeting international standards. Compliance costs for hallmarking, eco-friendly packaging, and responsible sourcing documentation are a big hurdle. Experts pointed out that limited access to advanced machinery, design innovation, and modern manufacturing tools and inadequate and high-cost working capital to fund large export orders or meet new market entry requirements is also a challenge.
“Higher compliance costs may serve as a deterrent. Furthermore, challenges in meeting quality standards and obtaining certifications in a timely manner will remain critical to reap the benefits of the FTA. Lastly, competition from established larger manufacturers as well as the knowledge gap regarding global consumer buying preferences may serve as an additional constraint for MSMEs,” Guha added.
On a broader note, with proactive policy support, product innovation, and sustainable manufacturing practices, Indian jewellery brands are well-positioned to become global leaders in fine gold jewellery, reinforcing India’s legacy as the world’s trusted jewellery destination.
