Landmark Trade Deal will Double India Gem Exports to UK
May 07, 25
(IDEX Online) - A landmark trade deal between India and the UK will abolish tariffs on 99 per cent of imports from India, and provide a significant boost to India's gem and jewelry trade.
Exports of gems and jewelry are expected to more than double in the next two years as a direct result, up from $941m in 2024 to a projected $2.5bn in 2026.
UK prime minister Keir Starmer and India's prime minister Narendra Modi yesterday (6 May) announced the signing of the historic India-UK Free Trade Agreement (FTA) after more than three years of negotiations.
It is described by both governments as the biggest and most economically significant bilateral trade deal either country has signed since the UK left the European Union (Brexit) in January 2020.
The FTA eliminates tariffs on 99 per cent of Indian exports to the UK and cuts tariffs on 90 per cent of UK exports to India.
It makes Indian diamond and jewelry products more competitive in the UK market, as well as providing opportunities for deeper collaboration between Indian and UK jewelers.
India's gem and jewelry exports to the USA are currently around $10bn a year - more than 10 times the UK figure - but are under threat from 26 per cent US tariffs, which could come into force in July.
Pic shows Keir Starmer and Narendra Modi.