Editor’s Note
This article highlights a significant milestone in India-UK trade relations, as the first zero-duty jewellery consignment from Kolkata marks a promising step toward boosting Indian gem and jewellery exports to $1.75 billion over three years, offering cost advantages in the UK’s $4 billion market.
The first consignment of jewellery from Kolkata to the United Kingdom (UK) has been dispatched under the new India-UK trade agreement, which provides zero-duty access. It is expected that Indian gem and jewellery exports could increase to **$1.75 billion** over the next three years. This will help Indian exporters reduce their costs in the UK’s **$4 billion** market.
On Wednesday, the first jewellery shipment from Kolkata to the UK was dispatched. This is a major initiative under the new Comprehensive Economic and Trade Agreement (CETA) between India and the UK. On this historic occasion, jewellery worth a total of **$10 million** was sent to the UK from key centers across the country.
Previously, Indian jewellery faced an import duty of up to **4%** in the UK, but this has now been eliminated under CETA. The removal of this duty will give Indian exporters a significant advantage in the UK’s nearly **$4 billion** annual jewellery market. Companies will be able to reduce their costs and become more competitive globally. This is expected to either increase profits or boost export volumes.
The Gem and Jewellery Export Promotion Council (GJEPC) estimates that India’s jewellery exports to the UK could rise from the current **$754 million** to **$2.5 billion** over the next three years. Kolkata, known for its unique craftsmanship and traditional artistry, will play a key role in this growth. This will directly benefit small and medium enterprises (MSMEs) and local artisans.
However, while duty-free access is good news, the real benefit for companies will depend on maintaining global demand and quality standards. Additionally, fluctuations in gold and diamond prices could impact export value and demand. Investors will need to monitor whether this export growth translates into revenue for listed jewellery companies in the coming quarters. Keeping an eye on GJEPC data and companies’ future plans will be essential.