The Free Trade Agreement (FTA) signed by India and UK eliminates import duties on all gems and jewellery exports to the UK, bringing the current tariff of up to 4% down to zero. This move delivers immediate cost advantage and margin relief to Indian exporters, and levels the playing field with competitors from countries that already enjoy preferential access to the UK.
Signed by Prime Ministers Narendra Modi and Keir Starmer, the FTA is one of the most comprehensive trade deals India has signed to date — it directly names gems and jewellery among the key labour-intensive sectors expected to benefit from unprecedented market access and tariff elimination. The UK, a long-standing destination for Indian jewellery, especially gold, diamond, and bridal segments, now offers zero-duty entry, unlocking stronger profitability and volume potential for Indian jewellery exporters.
The agreement also supports the services that power the jewellery trade, including:
• Visa liberalisation and simplified movement for Indian designers, merchandisers, gemstone graders, and branding professionals
• A three-year exemption from social security contributions for Indian employees working in the UK
• Increased access to the UK’s retail, luxury, and design ecosystem, especially for professionals delivering CAD, prototyping, or brand services from India
With Indian goods gaining zero-duty access on nearly 99% of tariff lines, this is one of the most important concessions ever achieved in a bilateral trade pact. It sends a strong signal of trust in India’s quality, scale, and design capabilities, opening a premium global market at a time when Indian exporters are looking to expand and diversify.
While jewellery continues to be classified under industrial goods in the FTA schedule, the agreement also recognizes “works of art” as a separate duty-free category. This small, but notable, inclusion prompts wider industry reflection: whether certain categories of Indian jewellery— particularly those representing heritage craftsmanship or contemporary design — could eventually be positioned not just as luxury items, but as cultural products with artistic value in global trade frameworks.
Commerce Minister Piyush Goyal described the FTA as a “benchmark for equitable and ambitious trade”, emphasizing its role in empowering India’s MSMEs, artisans, and entrepreneurs. With India-UK bilateral trade currently valued at $ 60 billion, and projected to double by 2030, the jewellery industry now has a clearer, faster path to market in one of the world’s most influential economies.
