The Free Trade Agreement (FTA) between India and the UK removes all import duties on gems and jewellery exports from India to the UK. Previously, these exports faced tariffs of up to 4%. The new agreement provides immediate cost savings and margin relief for Indian exporters, making it easier to compete with other countries that already benefit from preferential access to the UK market.
Signed by Indian Prime Minister Narendra Modi and UK Leader Keir Starmer, this FTA is one of the most comprehensive trade deals India has made. It specifically highlights gems and jewellery as key sectors that will benefit from better market access and the elimination of tariffs. The UK, a long-time destination for Indian jewellery—especially gold, diamond, and bridal jewellery—now offers zero-duty entry, which will increase both profitability and export volumes.
The agreement also supports services essential to the jewellery trade, including:
- Easier visa rules and simplified movement for Indian designers, merchandisers, gemstone graders, and branding experts.
- A three-year exemption from social security contributions for Indian workers in the UK.
- Increased access to the UK’s retail, luxury, and design sectors, particularly for professionals offering services like CAD design, prototyping, or branding from India.
With nearly 99% of tariff lines now duty-free, this FTA represents one of the biggest trade concessions India has ever achieved. It reflects strong international trust in India’s quality, scale, and design capabilities, opening up a premium global market for Indian exporters seeking to expand and diversify their reach.
While jewellery remains classified as an industrial good in the agreement, the inclusion of “works of art” as a separate duty-free category sparks broader discussions in the industry. This could potentially allow certain categories of Indian jewellery, particularly those that showcase traditional craftsmanship or modern design, to be recognized as cultural products with artistic value in global trade.
Commerce Minister Piyush Goyal called the FTA a “benchmark for equitable and ambitious trade,” stressing its role in empowering India’s small businesses, artisans, and entrepreneurs. With India-UK trade currently valued at $60 billion, and expected to double by 2030, the jewellery industry now has a clearer and faster path to one of the world’s most influential markets.
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