Exporters in Rajasthan are expecting a sharp rise in gems, jewellery, handicrafts and textiles shipments to the United Kingdom once the Free Trade Agreement (FTA) with India comes into effect.
As part of the FTA, which was signed in July this year and is likely to come into effect next year, duties on 99 per cent exports to the UK will be reduced to zero.
Jaipur-based jeweller K B Goyal of Dwarka Jewellers said the removal of the 3-3.5 per cent duty on jewellery items in the UK will give Indian jewellers a strong edge in global markets.
“The duty removal will help jewellers in sales and marketing of jewellery samples abroad… We will give tough competition to China, Thailand, and Hong Kong,” Goyal said.
He said India’s estimated export of gold, silver, and platinum jewellery to the UK stands around USD 400 million, with Rajasthan contributing nearly 40 per cent.
“We expect this export to increase 1.5 times in the next 2-3 years,” he added.
Trade policy expert Ridhish Rajvanshi, International Trade Law Consultant and Policy Advisor with CTIL, said the FTA would open new avenues for several key sectors in Rajasthan.
“In terms of Rajasthan, the FTA will benefit gems and jewellery, handicraft, engineering goods, renewable energy, IT services and textiles sectors. There will be almost zero duty on a majority of sectors, which will boost exports,” Rajvanshi said.
He added that while opportunities will be plenty, “industry players will have to come forward to tap them”.
Chairman, Insolation Energy Ltd, Manish Gupta said described the trade agreement as a “game changer” that could reshape India’s export landscape.
He stated that around 18- 19 per cent of India’s exports currently go to the US, and greater access to the UK market would diversify trade partnerships.
Addressing India-United Kingdom Comprehensive Economic and Trade Agreement organised by FICCI Rajasthan State Council and the Centre for Trade and Investment Law (CTIL) here in Jaipur earlier this month, Stephen Hickling, British Deputy High Commissioner to Gujarat and Rajasthan, said the FTA is expected to boost bilateral trade by 25.5 billion pounds (Rs 3.01 lakh crore) annually, with 99 per cent of Indian exports to the UK becoming duty-free.
