Mumbai: The implementation of the India-United Kingdom Free Trade Agreement (FTA) 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 (IBJA) 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)
