India-UK FTA to boost gems and jewellery exports: Industry leaders
Synopsis
The India-UK Free Trade Agreement eliminates duties on 99 per cent of products, opening a major new channel for India's gems and jewellery sector. With lab-grown diamonds, polished stones, and jewellery all set to benefit, industry leaders say this is the most significant tariff breakthrough for the sector in years — and part of a broader Indian push to diversify its export footprint globally.
Key Takeaways
The India-UK Free Trade Agreement (FTA) , formally called the Comprehensive Economic and Trade Agreement , has come into force, eliminating duties on 99 per cent of products .
IBJA President Prithviraj Kothari said exports of jewellery , diamond jewellery , lab-grown diamond jewellery , and polished diamonds are expected to rise significantly.
Adil Kotwal , President of the Gems and Jewellery Manufacturer Association , highlighted the importance of the pact for SEEPZ -based exporters in Mumbai .
India has signed similar FTAs with Australia and is in negotiations with other major economies, reflecting a broader export diversification strategy.
Market expert Sunil Shah noted a technical rebound in Indian equity markets on Wednesday , though crude oil prices remain elevated at around $85–86 .
The implementation of the India-United Kingdom Free Trade Agreement (FTA) is set to give a significant lift to India's gems and jewellery exports, with duties eliminated on 99 per cent of products and tariffs on jewellery, diamonds, and precious stones set to fall sharply, industry leaders said on Wednesday, 15 July. Prithviraj Kothari, President of the India Bullion and Jewellers Association (IBJA), described the agreement as a landmark development for the sector.
What the FTA Means for Gems and Jewellery
According to Kothari, the pact is expected to drive a sharp rise in shipments of jewellery, diamond jewellery, lab-grown diamond jewellery, polished diamonds, and other precious stone products to the United Kingdom. 'Our jewelry will be exported heavily — jewelry, diamond jewelry, lab-grown diamond jewelry, diamonds, polished diamonds — all of that will now be exported to the UK. Before this, the taxation slabs were quite high. And today, the items that are mainly required there will become cheaper here,' Kothari said.
He added that the agreement creates a genuine two-way trade opportunity. 'When you open up with any country, there is no doubt it becomes a two-way business. And having this with the UK is a very big achievement for us,' he said, noting that India has been expanding its trade network through similar agreements with countries including Australia, with negotiations ongoing with other major economies.
Duty-Free Access on 99 Per Cent of Products
Adil Kotwal, President of the Gems and Jewellery Manufacturer Association, underlined the scale of the tariff concessions embedded in the pact, formally referred to as the Comprehensive Economic and Trade Agreement. 'Under this, duties will no longer be levied on 99 per cent of the products,' Kotwal said, speaking at an event attended by managers from the Santacruz Electronic Export Processing Zone (SEEPZ).
Kotwal called the occasion a significant milestone for the India-UK partnership, particularly for export-oriented manufacturing units operating out of zones like SEEPZ in Mumbai, which house a large concentration of gems and jewellery exporters.
India's Expanding Global Trade Footprint
Kothari noted that the government's policy support for exporters has improved considerably over the past decade, and the India-UK FTA is part of a broader push to deepen trade ties with major economies. Beyond Australia and the UK, negotiations with other trading partners are reportedly progressing, reflecting what Kothari described as a 'booming' Indian market.
This comes amid a sustained effort by New Delhi to reduce dependence on a narrow set of export destinations and diversify market access for labour-intensive sectors such as gems and jewellery, which employ millions across Gujarat, Maharashtra, and Rajasthan.
Market Reaction and Broader Economic Context
Market expert Sunil Shah noted that Indian equity markets staged a technical rebound on Wednesday after the previous session's sharp decline. 'It is positive, but this looks more like a technical bounce-back because crude oil prices are still at around the 85–86 level. Of course, that is still better than what they were at one point in time, when they touched more than $112,' Shah said.
With the FTA now in force, industry bodies are expected to engage closely with the government on implementation timelines and certification frameworks to ensure exporters can fully capitalise on the improved market access from the outset.
Point of View
But the real test will be in implementation — specifically, whether SEEPZ exporters and smaller diamond processors can navigate certification and rules-of-origin requirements quickly enough to capture first-mover advantage. India's lab-grown diamond segment is particularly well-positioned, given surging UK consumer demand and the cost advantage Indian manufacturers hold. What mainstream coverage underplays is that the FTA's value for gems and jewellery is as much about signalling — to global buyers and competing hubs like Dubai — as it is about the tariff numbers themselves.
NationPress
15 Jul 2026
Frequently Asked Questions
What is the India-UK Free Trade Agreement and what does it cover for gems and jewellery?
The India-UK Free Trade Agreement, formally known as the Comprehensive Economic and Trade Agreement, eliminates duties on 99 per cent of products traded between the two countries. For India's gems and jewellery sector, this means significantly lower tariffs on jewellery, diamond jewellery, lab-grown diamond jewellery, polished diamonds, and other precious stone products exported to the UK.
Who are the key industry voices welcoming the India-UK FTA?
Prithviraj Kothari, President of the India Bullion and Jewellers Association (IBJA), and Adil Kotwal, President of the Gems and Jewellery Manufacturer Association, both welcomed the agreement. Kothari said the pact is a major achievement for India's export sector, while Kotwal highlighted its importance for SEEPZ-based exporters in Mumbai.
How does the India-UK FTA fit into India's broader trade strategy?
The India-UK FTA is part of a wider effort by India to expand its global trade footprint, with similar agreements already in place with Australia and negotiations ongoing with other major economies. Industry leaders say the Indian market is increasingly attractive to global partners, driving a wave of new trade pacts.
Which exporters will benefit most from the India-UK FTA?
Exporters of gems and jewellery — particularly those operating out of the Santacruz Electronic Export Processing Zone (SEEPZ) in Mumbai — are expected to benefit most. The sector spans jewellery manufacturers, diamond polishers, and lab-grown diamond producers across Gujarat, Maharashtra, and Rajasthan.
What was the market reaction on the day the India-UK FTA news broke?
Indian equity markets recorded a technical rebound on Wednesday following the previous session's sharp decline, according to market expert Sunil Shah. He cautioned, however, that the bounce was technical in nature, with crude oil prices still elevated at around $85–86 per barrel.
