The India-UK free trade agreement (FTA) is likely to give a significant impetus to gems and jewellery exports to the UK from India.
From $941 million in terms of exports currently, the jump is likely to be to the tune of $2.5 billion in the next two years, Kirit Bhansali, chairman of the Gems & Jewellery Export Promotion Council (GJEPC), said.”The agreement will open up new opportunities for growth, investment and collaboration strengthening trade between the two nations,” he added.
Some experts also see total bilateral trade in this segment, including exports as well as imports, doubling from levels of about $3.6 billion now to about $7 billion in the next few years with the trade deal. Imports from UK to India are currently valued at $2.7 billion. This could double to about $4.3 billion in the next two years, experts said.
Currently, the UK’s tariffs on Indian gems and jewellery are up to 4%; the FTA will bring these down to zero.
“The India-UK trade deal has come at a time when markets such as the US and China are on the decline,” an official at PC Jeweller said. “The deal will open up prospects for Indian firms in this regard. The UK was a smaller export market versus US and China so far. It will increase significantly with this trade deal,” the executive said.
Jayant Ranige, chief executive officer of UK-based PureJewels by Bhanji Gokaldas, said that he saw more collaboration between Indian and British artisans following the trade deal. “The doors to innovation and collaboration with artisans will increase,” he said. “This will open up the possibility of showcasing the shared legacy of Indian and British craftsmen,” he added.
The UK, with a large south Asian diaspora, is home to many luxury jewellery brands. Indian firms like Kalyan Jewellers and Malabar Gold and Diamonds have inaugurated new stores in the UK in recent months, other top retailers are also in the process of setting up shop in the country. “Given the UK’s high spending potential and luxury brands, the FTA will also come in handy for for Indian artisans and small-scale businesses,” Bhansali added.
Vipul Shah, CEO & Managing Director of Asian Star Jewellery, said the FTA would give a fillip to the Santacruz Electronics Export Processing Zone (SEEPZ), which houses over 180 gems and jewellery processing units. “The employees at SEEPZ has faced uncertainty due to the tariff war and an overall decline in demand from countries such as China. With the prospects of increased exports of studded jewellery and other precious metals to the UK, their jobs will be safeguarded,” he said.
According to Alkesh Shah, Vice Chairman of Goldstar Jewellery, studded and gold jewellery segments stand to benefit the most from the agreement. “We can comfortably predict a 10-15% year-on-year growth for our UK exports, maybe even more,” he said. Colin Shah, managing director at Kama Jewellery, said the FTA would provide Indian exporters preferential access to UK over competitors like China and Thailand.