India-UK FTA spurs export hopes for jewellery sector

For brands like Joyalukkas, which already operate in the UK, catering to both, the Indian-origin consumer base and UK consumers is key.
| Photo Credit:
ARUN SHARMA

The proposed India-UK Free Trade Agreement (FTA) is expected to give a significant boost to gem and jewellery exports, with industry players optimistic about a sharp rise in shipments to the UK. The agreement, currently in its final stages of negotiation, is expected to eliminate 99 per cent of tariffs on Indian goods, including high-value categories like gems and jewellery—making way for stronger export growth and increased job creation in the labour-intensive sector.

According to the Gem and Jewellery Export Promotion Council (GJEPC), jewellery exports to the UK are expected to grow from $400 million to $1 billion, with total gem and jewellery exports reaching $2.5 billion within the next two years.

gain traction

Indian jewellery players anticipate gold and diamond jewellery to gain traction in the UK market. According to Kirit Bhansali, Chairman of GJEPC, “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.”

For brands like Joyalukkas, which already operate in the UK, catering to both, the Indian-origin consumer base and UK consumers is key. “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 & MD of Joyalukkas.

Avenues for start-ups to establish global presence

The FTA is also a gateway for emerging brands and start-ups. For lab-grown diamond start-up Lucira, the reduced market entry cost and streamlined regulations open new avenues for direct-to-consumer (D2C) expansion.

“The UK is seeing a strong shift toward ethical luxury and sustainable alternatives in fine jewellry, particularly among Gen Z and millennial consumers, our core target group. With growing awareness of lab-grown diamonds, a digitally savvy audience, and a deep appreciation for design-forward pieces, the UK presents a promising market for expansion, especially through D2C and curated retail partnerships,” said Rupesh Jain, Founder of Lucira.

Strategic Collaboration

Players who are yet to make their way in UK markets are tracking consumer trends to adapt effectively. “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,” said Piyush Gupta, Director, PP Jewellers by Pawan Gupta.

operational issues

Despite the optimism, Indian players have noted the operational challenges that hamper the long-term benefits of an agreement like this. In 2024, India’s jewellery exports to the UK reached $941 million however, meeting UK hallmarking standards and managing documentation requirements pose a challenge, especially for new entrants.

“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.

Players also cite logistical gaps, limited legal and IP support, and the need for stronger distribution frameworks to make this a sustainable long-term opportunity. They noted where government and trade bodies must offer market access programs, training, and export guidance.

(Report filed by bl intern Nethra Sailesh)

Published on May 29, 2025

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