Kirit Bhansali, Chairman of the GJEPC, was present at the celebration of the signing of the historic deal, which is set to transform bilateral trade between the two nations, with nearly 99% of Indian exports – including gems, diamonds and gold jewellery -gaining zero-duty access to the UK market
London: The historic India-UK Free Trade Agreement (FTA), signed by Prime Minister Narendra Modi with UK Prime Minister Sir Keir Starmer on July 24, 2025, is poised to catalyse a transformative leap for the Indian gems and jewellery industry, with experts forecasting a quantum leap in exports to the United Kingdom over the next few years. The trade deal will give Indian jewellers duty-free access to the UK market, significantly enhancing their global competitiveness.
The UK, one of India’s top five export destinations for jewellery, currently imports approximately $400 million worth of Indian gems and jewellery annually. With tariffs on key product lines now eliminated, that figure is projected to exceed $1 billion by 2026, according to the Gem & Jewellery Export Promotion Council (GJEPC).
Kirit Bhansali, Chairman of the GJEPC, was present at the celebration of the signing of the deal, along with other senior representatives of GJEPC. He presented a coffee-table book titled ‘Gem of a Partnership’ to Jonathan Reynolds, Honorary Secretary of State for Business and Trade, President, Board of Trade of the United Kingdom and other officials during a key business interaction following the UK-India FTA signing.
Before the agreement, Indian jewellery faced import duties ranging from 2.5% to 4% in the UK. The elimination of these levies not only improves price parity with competitors such as Thailand and Malaysia but also boosts margins for Indian exporters, making India a more attractive sourcing destination for British retailers. The India-UK FTA covers 99% of India’s export tariff lines, including gems, diamonds and gold jewellery.
According to trade analysts, total gems and jewellery exports to the UK could reach $2.5 to 3 billion within five years, driven by duty-free pricing, better market penetration, and higher demand for handcrafted and lab-grown diamond jewellery. According to GJEPC, post FTA, India’s gem and jewellery exports are projected to grow 34% to $2.45 billion in the next two years.
The FTA is expected to create significant new opportunities for India’s MSME sector, especially in jewellery clusters such as Surat, Jaipur, Hyderabad and Mumbai. Artisanal manufacturers, who traditionally face high barriers to global entry, can now access UK buyers with a more level playing field.
Additionally, the agreement includes eased visa norms and a three-year social security exemption for Indian professionals working in the UK. This paves the way for designers, CAD specialists and gemstone graders to offer services directly or collaborate with UK-based partners.
The zero-duty clause also opens new export pathways for lab-grown diamonds, a fast-growing segment in which India is a global leader. Industry leaders believe branded and certified jewellery lines—especially from organized players—stand to gain substantial traction in the UK’s mid-to-premium market.
With global inflationary pressures and shifting consumer tastes, the India-UK FTA arrives at a strategic time for Indian jewellers seeking to diversify markets and strengthen margins. The deal not only unlocks new business potential in a mature Western market but also sets a precedent for similar trade negotiations with other high-value markets.
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