Editor’s Note
The recently signed India-UK Free Trade Agreement eliminates import duties on gems and jewelry in the UK, a development hailed as a potential “game changer” for Rajasthan’s exporters. This analysis explores the new opportunities for the state’s signature industry.
The Free Trade Agreement (FTA) between India and the United Kingdom (UK) has opened a new flight path for Rajasthan’s gem and jewelry industry in the international market. There will now be no import duty on these products in the UK, which will provide significant relief to exporters from Rajasthan.
The state government has described this as a ‘game changer’ for the state’s products. Under the leadership of Chief Minister Bhajanlal Sharma, the upcoming ‘Rising Rajasthan Partnership Conclave-2025’ in December will also have a special focus on linking this agreement with the state’s industrial development.
Textile industries in districts like Bhilwara, Pali, and Barmer will get a new market and an opportunity for direct dealings with UK fashion brands. Rajasthan’s traditional items like Bandhani, Lahariya, and Khadi could become popular in foreign markets. A potential increase of 15 to 20 percent in exports to the UK is being projected.
Clusters in cities like Jaipur for gems, jewelry, marble, textiles, furniture, and handicrafts will find it easier to reach the international market. The government may plan to develop these clusters as Special Export Zones (SEZs). The government could also connect youth and startups through e-export promotion schemes. Exports of auto parts will also get a boost with local value addition rules.
Zero duty on products like precious, semi-precious stones, pearls, and artificial jewelry. Marble, traditional furniture, handicrafts, and metal crafts will find a new place in the UK’s luxury market. The Tapukara Honda plant serves as a model for engineering exports. Engine parts like crankshafts are being exported from here.
