India-UK FTA to give major boost to gems, jewellery exports: Industry leaders
Mumbai, July 15
The implementation of the India-United Kingdom Free Trade Agreement is set to provide a major impetus to India's gems and jewellery exports by lowering tariffs and improving market access for a wide range of products, India Bullion and Jewellers Association President Prithviraj Kothari said on Wednesday.
Speaking on the trade pact coming into force, Kothari said exports of jewellery, diamond jewellery, lab-grown diamond jewellery, polished diamonds and other precious stone products are expected to increase significantly as the agreement reduces the tax burden on these products.
"Our jewelry will be exported heavily -- jewelry, diamond jewelry, lab-grown diamond jewelry, diamonds, polished diamonds -- all of that will now be exported to the UK. Before this, the taxation slabs were quite high. And today, the items that are mainly required there will become cheaper here," he told IANS.
"So, look at business, when you open up with any country, there is no doubt it becomes a two-way business. And having this with the UK is a very big achievement for us. And as you have seen, it is also happening with Australia, with France-FTAs are being signed everywhere. So the Indian market now is booming," he added.
According to Kothari, trade agreements create mutual benefits for both participating countries by expanding two-way commerce, and the India-UK pact marks an important milestone for India's export sector.
He added that India has been actively expanding its global trade footprint through similar agreements with countries including Australia, while negotiations with other major economies are also progressing, reflecting the growing strength of the Indian market.
Commenting on the broader economic landscape, Kothari said the government's policy support for industries and exporters has improved considerably over the past decade.
Echoing similar views, Adil Kotwal, President, Gems and Jewellery Manufacturer Association, said that all our SEEPZ (Santacruz Electronic Export Processing Zone) exam managers and others are present here. This is a very important occasion for the India-UK partnership, which is referred to as the Comprehensive Economic and Trade Agreement.
"Under this, duties will no longer be levied on 99 per cent of the products," Kotwal told IANS.
Meanwhile, market expert Sunil Shah said Indian equity markets witnessed a technical rebound on Wednesday after the sharp decline in the previous session.
"It is positive, but this looks more like a technical bounce-back because crude oil prices are still at around the 85-86 level. Of course, that is still better than what they were at one point in time, when they touched more than $112," Shah mentioned.
— IANS
Reader Comments
I'll believe it when I see the actual benefits trickle down to small jewellers and artisans. Often, these big trade deals only help large corporates. Labour costs and quality standards need to be maintained too. Let's watch this space.
Finally, some positive economic news! Our traditional craftsmanship combined with lab-grown diamonds is a winning formula. The UK loves Indian jewellery — I've seen it during Diwali sales there. Hope this reduces prices for local consumers too. 🌟
All these FTAs sound good on paper, but we need to ensure our small-scale artisans and workers in the unorganised sector are protected. Labour rights, fair wages, and environmental standards for mining should not be compromised just for export numbers. Just saying.
Excellent move! India's 'Make in India' push combined with these trade pacts is really paying off. The gems and jewellery sector employs millions — from polishers in Surat to designers in Mumbai. This will create more jobs and bring foreign exchange. Proud of our growing global footprint! 🚀
Interesting development. As someone who follows trade, I note the UK is also negotiating with other nations. India must ensure its FTAs include strong provisions on intellectual property and dispute resolution. Let's hope this is a comprehensive win-win for both economies.
A We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.