India-UK CETA kicks in: Kolkata ships first jewellery exports to Britain with zero import duty

Kolkata on Wednesday flagged off its first jewellery export consignment to the United Kingdom under the India-UK Comprehensive Economic and Trade Agreement (CETA).

Six city-based exporters shipped goods worth USD 2.7 million (around ₹27 crore) as part of a nationwide inaugural consignment valued at USD 10 million, according to news agency PTI. 

The flag-off was part of a simultaneous nationwide launch held in Delhi, Mumbai, Surat, Jaipur, and Chennai, marking India's first jewellery exports to the UK under the trade agreement, according to the Gem & Jewellery Export Promotion Council (GJEPC).

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Zero-Duty Access Opens UK Market

"Today, jewellery worth Rs 27 crore, or USD 2.7 million, made from 21 kg of gold, was flagged off for export to the UK under CETA, which provides the direct benefit of the elimination of the two per cent import duty. The agreement provides zero-duty access to the UK market from the day it enters into force, eliminating UK import tariffs," GJEPC Eastern Region Chairman Pankaj Parekh was quoted as saying by PTI.

The council said the trade pact is expected to boost West Bengal's gem and jewellery industry by improving market access, encouraging value-added manufacturing, generating employment and strengthening the participation of artisans, MSMEs and exporters.

Six Kolkata Exporters Part Of First Shipment

The ceremony was held at the Kolkata Air Cargo Complex in the presence of Industry and Commerce Minister Tapas Roy, CBIC Member Yogendra Garg, Additional Director General of Foreign Trade Chandra Kant Mishra, British Deputy High Commissioner for East and Northeast India Andrew Fleming, and GJEPC Eastern Region Chairman Pankaj Parekh.

The six Kolkata-based exporters participating in the inaugural shipment are Jais Jewellery Pvt Ltd, Modern Impex, L Gopal & Sons (Jewellers), AB Jewels Pvt Ltd, JS Jewels Private Limited and Hasmukh Parekh Jewellers.

The shipment comprises gold, diamond, silver, and platinum jewellery.

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Exports Seen Rising To $2.5 Billion

GJEPC Chairman Kirit Bhansali said the agreement gives Indian exporters a significant advantage in the UK's USD 4 billion jewellery import market.

"With zero-duty access, we expect India's gem and jewellery exports to the UK to increase from around USD 754 million to nearly USD 2.5 billion over the next three years," he said, crediting the Narendra Modi government with concluding the trade pact.

Calling the agreement a "transformative opportunity", Parekh said it would help showcase Indian craftsmanship in one of the world's most discerning jewellery markets, adding that Kolkata's long-standing manufacturing legacy positions the city to play a significant role in the projected growth.