The gem and jewellery trade in Surat has turned optimistic with the India-UK Free Trade Agreement (FTA) set to take effect on July 15, granting duty-free access for various gem and jewellery products to the UK market.
Signed in July 2025, the agreement eliminates UK import duties that currently range from 2.5% to 4%, depending on the product category. Trade participants and exporters believe that removing these levies will enhance the price competitiveness of Indian products in the UK and open up opportunities for larger order volumes across jewellery, diamonds, and other segments.
Projected Growth in Exports
According to projections by the Gem and Jewellery Export Promotion Council (GJEPC), India's exports of gems and jewellery to the UK were approximately $941 million in 2024, including about $400 million in jewellery alone. Imports from the UK stood at $2.7 billion, bringing total bilateral trade in the sector to $3.6 billion. With the FTA in effect and the UK relaxing duties on jewellery, India's jewellery exports are projected to rise to $1 billion, while total gem and jewellery exports are expected to increase to $2.5 billion over the next two years. Bilateral trade in the segment is forecast to nearly double to about $7 billion.
Job Creation and Industry Impact
Industry representatives anticipate gains beyond export numbers. The India-UK partnership is projected to generate more than 1.4 lakh new jobs, directly supporting artisans, manufacturers, and exporters across major jewellery clusters.
Dinesh Navadiya, chairman of the Indian Diamond Institute (IDI), stated: "The FTA will reduce trade barriers, streamline logistics, and ensure that Indian jewellers can serve global consumers with greater competitiveness. This will ensure that gem and jewellery manufacturers are better positioned compared to other manufacturing hubs in the world."
Navadiya added that earlier Indian exporters often depended on routing through other countries that enjoyed lower duties in the UK, but the agreement now strengthens India's position as an end-to-end manufacturing hub, from gems to finished jewellery.
