Surat Jewellers Cheer India-UK Free Trade Agreement

Surat, Gujarat –  A wave of optimism is sweeping across the diamond and jewelry industry in Surat following the recent free trade agreement (FTA) between India and the United Kingdom.

One of the major highlights of this pact is the elimination of the 4% import duty previously imposed by the UK on Indian diamond and jewelry exports. This game-changing move is expected to significantly boost Surat’s global trade footprint, especially in the UK market.

Until now, Indian traders exporting jewelry and diamonds to the UK had to account for an additional 4% import duty, which made their products less competitive in comparison to other international markets.

With the implementation of the FTA, the import duty has now dropped to zero. This means Indian jewelry will now be up to 4% cheaper in the UK compared to offerings from countries still facing the duty—an advantage expected to translate directly into increased export volumes.

According to official trade data from 2024, jewelry worth ₹21,866 crore was exported to the UK globally, of which India’s share stood at ₹2,750 crore. Similarly, the global diamond export value to the UK was ₹8,422 crore, with Indian diamonds accounting for ₹1,422 crore.

In the silver jewelry segment, India exported ₹540 crore worth of goods, compared to a global figure of ₹3,327 crore. With the new agreement in place, India’s market share is poised to rise significantly across all these categories.

Jayanti Savaliya, Chairman of the Gem and Jewellery Export Promotion Council (GJEPC), emphasized the importance of this development for Surat’s exporters. “This free trade agreement is a big win for Indian jewelers, especially those based in Surat. The removal of the 4% duty makes our products more price-competitive. However, success will depend on our ability to maintain quality and compliance in manufacturing,” he said.

Savaliya further noted that the FTA opens new opportunities for innovation and diversification in design, as UK buyers are known to value craftsmanship and ethical sourcing. “If Surat’s manufacturers focus on producing better quality and comply with international standards, the growth potential is immense,” he added.

Industry experts predict a sharp uptick in exports in the coming quarters, with many traders already exploring new partnerships and expansion plans in the UK. The FTA is also seen as a morale booster amid global market uncertainties and is likely to encourage more investment in Surat’s already vibrant gem and jewelry sector.

With zero duty now levied on exports to the UK, Surat’s traders are preparing to meet the expected surge in demand, firmly positioning themselves as key players in the international jewelry market.