In 2024, India exported gems and jewellery worth $941 million to the UK, while imports from the UK were at $2.7 billion, taking the total bilateral trade in the sector to $3.6 billion.
With the FTA in place, Indian gem and jewellery exports to the UK are expected to rise to $2.5 billion, and overall trade in the sector is projected to reach $6 billion in the next two years.
Ray also highlighted that the UK has a large South Asian population, with people from Indian, Bangladesh, Sri Lanka, and Nepal, who traditionally prefer ethnic jewellery, which aligns with Indian exports.
Indian retailers like Malabar Gold and Kalyan Jewellers have already opened stores in the UK to tap into this demand. With the FTA bringing import duties down to zero, Indian jewellers will now be in a stronger position to compete with players from Hong Kong and China.
Silver jewellery, in particular, is expected to drive exports, as demand for it in the UK is high while Indian exports in that category remain limited.
When asked about India-US trade talks, Ray expressed cautious optimism, noting that the talks with the US are progressing well and that the Indian government is hopeful and confident about reaching a comprehensive deal.
He points out that while there have been many announcements about trade deals with various countries, the details, such as import duties and value addition, are often not finalised.
Ray emphasises the importance of a comprehensive bilateral trade agreement with the US, which should include all necessary details to ensure a fair and beneficial deal for India.