Forging Brilliance: India–UK Free Trade Pact to Spark $6 Billion Gem & Jewellery Trade Boom

A new chapter in global trade diplomacy unfolded on 24th July 2025, as India and the United Kingdom officially signed a landmark Free Trade Agreement (FTA) at Chequers, the country residence of UK Prime Minister Sir Keir Starmer. This historic accord, signed in the presence of Hon’ble Prime Minister Shri Narendra Modi, signals a transformative phase in India–UK economic relations, with profound implications for multiple sectors, especially India’s thriving gem and jewellery industry.

Among the distinguished members of the Prime Minister’s business delegation was Mr. Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), who actively participated in the ceremonial exchange and diplomatic engagements that marked the occasion.

Mr. Kirit Bhansali, Chairman, GJEPC (extreme left), attended a business event during the FTA ceremony in London.

Opening New Avenues for the Jewellery Sector

The India–UK FTA represents a pivotal policy breakthrough, granting zero-duty access to 99% of Indian exports entering the UK market. With this unprecedented market opening, Indian gem and jewellery exports, which currently stand at USD 941 million, are projected to surge to USD 2.5 billion, almost tripling in value within the next three years. The bilateral trade in the gem and jewellery segment is expected to reach USD 6 billion, establishing the UK as one of India’s top destination markets for jewellery exports.

The duty concessions will significantly enhance the competitiveness of ‘Made in India’ products, especially high-value segments like plain gold jewellery, diamond-studded ornaments, handcrafted pieces, and heritage-inspired collections.

“This deal is not just an agreement, it’s a vision realised. It is about empowering artisans, energising exporters, and placing Indian craftsmanship on the global luxury map,” remarked Mr. Kirit Bhansali, reflecting on the significance of the FTA.

Celebrating Craftsmanship: ‘Gem of a Partnership’ & UK–India Reception

As part of the cultural and economic diplomacy accompanying the FTA signing, Mr. Bhansali presented a special coffee table book titled ‘Gem of a Partnership’ to both Prime Ministers. The publication highlights the evolution, artistry, and economic contribution of India’s gem and jewellery sector from heritage designs to cutting-edge contemporary craftsmanship.

Mr. Kirit Bhansali presenting the GJEPC-curated coffee-table book ‘Gem of a Partnership’ to Mr. Jonathan Reynolds, Honorary Secretary of State for Business and Trade, President Board of Trade of United Kingdom (Commerce Minister of UK).

In parallel, the UK–India Reception showcased a curated exhibit titled ‘Indian Crafts Reimagined’, a jewellery collection blending traditional techniques with modern aesthetics. From filigree and Kashmiri-inspired motifs to Warli art, Meenakari, and precious enamel work, the pieces embodied India’s creative diversity and celebrated its artisan legacy.

“This collection echoed our Hon’ble Prime Minister’s powerful call for ‘Design in India, ’ a mission to position Indian craftsmanship not just as a product, but as an experience,” said Bhansali. “It was an honour to represent this vision on a global stage.”

The FTA is structured to benefit India across various verticals engineering goods, footwear, textiles, and particularly labour-intensive sectors. Importantly, the pact includes a Double Contribution Convention, exempting Indian professionals and employers from social security contributions in the UK for up to three years. This move is expected to enhance the competitiveness of Indian professionals and exporters alike.

Union Minister for Commerce and Industry, Shri Piyush Goyal, hailed the deal as a milestone in bilateral trade policy, calling it “ambitious, balanced, and forward-looking.” He emphasised how the agreement advances the ‘Make in India’ initiative while promoting inclusive economic growth, especially for MSMEs, artisans, startups, farmers, and contractual service providers.

He added:

“This agreement enhances ease of doing business, reduces operational costs, and fosters trust between both economies. It not only facilitates trade in goods and services but also strengthens mobility frameworks and digital cooperation areas vital for the future of global trade.”

GJEPC’s Role in Enabling Industry Readiness

With the FTA unlocking expansive opportunities, GJEPC is actively working to support stakeholders and exporters in navigating this new trade environment. The Council will organise webinars, awareness programs, and expert-led seminars to ensure that exporters, artisans, and MSMEs are equipped to leverage the benefits of the agreement.

Mr. Bhansali added:

“The GJEPC has always been a catalyst in building bridges between policy and practice. With this FTA, we are not just looking at numbers, but at possibilities of expanding India’s soft power, creating employment, and reinforcing our leadership in the global jewellery narrative.”

Dignitaries posing at the India Crafts Reimagined showcase during the UK-India Reception.

A Step Towards a Shared Future

The India–UK FTA stands as more than just a trade pact; it symbolises shared ambition, mutual respect, and a future-focused economic vision. It is expected to fuel innovation, boost investments, and enhance consumer access to fine-quality goods at competitive pricing in both countries.

With both governments committed to sustainable growth, skilled job creation, and innovation-led trade, the agreement marks the dawn of a truly collaborative era, one where Indian jewellery, deeply rooted in culture yet boldly contemporary, continues to shine on the global stage.

Author: Jewellery Pursuer

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