The forthcoming India–UK Free Trade Agreement (FTA) is expected to remove nearly all tariffs on Indian jewellery exports to the UK.
According to the Gem and Jewellery Export Promotion Council (GJEPC), the agreement could see exports of Indian jewellery to the UK increase from approximately £297 million to £742 million, with total gem and jewellery exports reaching £1.85 billion within two years of implementation.
Product Categories and Market Focus
Gold and diamond jewellery are expected to remain the primary categories of interest for the UK market. “Gold and diamond-studded jewellery are expected to gain more traction, driven by strong consumer demand and established market preference. However, we also see potential in other segments like silver jewellery and coloured gemstones, and we intend to actively explore opportunities in these categories to diversify and tap into emerging trends,” said Kirit Bhansali, Chairman of GJEPC.
For established exporters such as Joyalukkas, both diaspora and domestic UK markets are relevant. “In the UK, there is strong demand for bridal and festive pieces among Indian-origin customers. But we are also seeing growing interest in lightweight daily wear, contemporary gold, and solitaire-based diamond jewellery among younger, style-conscious buyers. UK consumers tend to prefer more minimalist, design-forward pieces compared to the heavier, traditional styles favoured in India,” said Joy Alukkas, Chairman and Managing Director of Joyalukkas.
Entry Prospects for New and Small-Scale Exporters
The FTA may also lower entry barriers for start-ups, especially those focused on lab-grown and sustainably sourced jewellery. Lab-grown diamond company Lucira has identified the UK as a market of interest. “The UK is seeing a strong shift toward ethical luxury and sustainable alternatives in fine jewellery, particularly among Gen Z and millennial consumers, our core target group. With growing awareness of lab-grown diamonds, a digitally savvy audience, and interest in contemporary designs, the UK presents a promising market for expansion, especially through D2C and curated retail partnerships,” said Rupesh Jain, Founder of Lucira.
Piyush Gupta, Director of PP Jewellers by Pawan Gupta, noted the need for preparation and adaptability: “The India–UK FTA is a very positive and promising development. It opens up a lot of opportunities, and we’re carefully studying the UK market, buyer preferences, and compliance needs. If the right opportunity comes, whether in collaborations or product adjustments, we’re definitely open to exploring and evolving our strategy accordingly.”
Regulatory Considerations and Infrastructure Needs
Although the FTA is expected to reduce tariffs, Indian exporters continue to face regulatory and operational challenges. In 2024, jewellery exports to the UK reached £698 million. However, UK hallmarking and documentation requirements remain a barrier for some exporters, particularly those new to the market.
“Documentation and hallmarking requirements in the UK are understandably rigorous, and for Indian exporters unfamiliar with these standards, it can be a learning curve,” said Joy Alukkas.
Industry representatives have also highlighted the need for improved logistics, legal support, and distribution networks. Ongoing support from government and trade bodies is seen as important to help exporters address compliance and establish reliable access to the UK market.
