The deal, signed by Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, is among the most ambitious bilateral trade agreements India has negotiated. It specifically highlights gems and jewellery as one of the labour-intensive sectors poised to gain from full tariff elimination and expanded market access.

The UK has long been a key export destination for Indian jewellery, particularly in the gold, diamond, and bridal categories. With duties now removed, exporters anticipate increased volumes and improved margins, placing them on firmer ground against global competitors with existing trade privileges in the UK.

Beyond tariff relief, the FTA includes provisions aimed at bolstering the services ecosystem that supports jewellery exports. These include visa liberalisation for Indian professionals such as designers, gemstone graders, and merchandisers, as well as a three-year exemption from social security contributions for Indian workers in the UK. It also promises greater access to the UK’s design and luxury sectors, particularly for CAD and prototyping services based in India.

The agreement provides zero-duty access on nearly 99% of tariff lines, making it one of India’s most wide-ranging trade pacts. In a notable inclusion, “works of art” have been carved out as a separate duty-free category—raising questions within the industry about whether certain forms of Indian jewellery, particularly those rooted in heritage craftsmanship, could be redefined as artistic or cultural exports under future trade frameworks.

Commerce Minister Piyush Goyal described the deal as a "benchmark for equitable and ambitious trade,” underlining its potential to benefit India’s MSMEs and artisan-led sectors. With bilateral trade between India and the UK currently valued at $60 billion and projected to double by 2030, the FTA is expected to pave the way for a more streamlined and profitable presence for Indian jewellery in one of the world’s key luxury markets.