Jewellers set to strike gold with UK trade deal

India’s gold and diamond jewellery exports are expected to get a boost as the India-UK Comprehensive Economic and Trade Agreement (CETA) allows Indian jewellers to access the UK market at zero duty, down from the current 2.5%–4% tariff. This will provide them a level playing field against local UK jewellers and an edge over competition from countries like Malaysia.

The government estimates jewellery exports to the UK to double in 2-3 years due to the CETA.

While the South Asian community in the UK are always on the lookout for Indian plain gold jewellery, British consumers prefer diamond-studded jewellery as daily wear, industry executives said.

India currently exports $941 million worth of gems and jewellery to the UK, of which almost $400-million comes from plain gold, studded and silver jewellery.

Industry executives said the CETA will also boost imports of gold, silver and platinum bars from the UK, which are certified by London Bullion Market Association, ensuring authenticity of the metals.

India will levy zero import duty on gold and silver bars (which currently attract 6% duty), platinum bars (6.4%), cut and polished diamonds (5%) and gold jewellery (20%) from the UK.

Sabyasachi Ray, executive director of Gem & Jewellery Export Promotion Council (GJEPC), said India can now depend on the UK for its bullion supply and shift from other sources.

GJEPC estimates bilateral trade in gems, jewellery and bullion to double to $7 billion in next two years. Indian gem and jewellery exports to the UK are expected to climb to $2.5 billion, GJEPC chairman Kirit Bhansali said.

The government expects the trade deal to help enhance India’s position in the UK’s luxury and lifestyle segments as well. Indian jewellery chains such as Titan-owned Tanishq, Malabar Gold & Diamonds and Joy Alukkas already have a presence in the UK.

Bhansali said the benefits of the deal will reverberate across jewellery clusters from Jaipur to Kolkata and Surat to Coimbatore, generating employment for artisans and goldsmiths.