India-UK FTA Adds Sparkle to Jewellery Exports, Silver Leads the Way

The recently signed India-UK Free Trade Agreement (FTA), also known as the Comprehensive Economic and Trade Agreement (CETA), is expected to significantly enhance jewellery exports from India, according to Sabyasachi Ray, Executive Director of the Gem & Jewellery Export Promotion Council (GJEPC).

In 2024, India exported gems and jewellery worth $941 million to the UK, while imports from the UK stood at $2.7 billion, bringing the total bilateral trade in the sector to $3.6 billion.

With the FTA now in place, exports of Indian gems and jewellery to the UK are projected to rise to $2.5 billion, with overall trade in the sector expected to reach $6 billion over the next two years.

Ray noted that the UK’s sizeable South Asian population, including people from India, Bangladesh, Sri Lanka, and Nepal, has a traditional preference for ethnic jewellery, which aligns well with Indian export offerings.

Indian jewellery retailers such as Malabar Gold and Kalyan Jewellers have already established stores in the UK to cater to this growing demand. With the FTA reducing import duties to zero, Indian jewellers will be better positioned to compete with rivals from Hong Kong and China.

Silver jewellery is anticipated to be a key driver of export growth, as UK demand remains high while India’s current exports in this category are relatively limited.

When asked about ongoing India-US trade talks, Ray expressed cautious optimism. He stated that discussions are progressing well and that the Indian government remains hopeful and confident about reaching a comprehensive agreement.

He added that while there have been several announcements regarding trade deals with various countries, crucial details, such as import duties and value addition requirements, are often yet to be finalised.

Ray stressed the need for a comprehensive bilateral trade agreement with the US that includes all necessary specifics to ensure a fair and beneficial outcome for India.

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