India-UK CETA 2025: Impact on Gold & Jewellery Explained

India and the UK’s Comprehensive Economic and Trade Agreement (CETA) 2025 marks a significant milestone in bilateral ties. It offers promising opportunities and challenges for India’s gold and jewellery sector. 

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With revised tariffs, streamlined customs protocols, and regulatory harmonization, exporters could gain enhanced access to the UK market and reduced costs. Simultaneously, UK buyers may benefit from lower prices and a broader product range. 

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This blog explores how the agreement reshapes trade dynamics, competitiveness, and supply‑chain efficiencies in gold and jewellery.

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Key Impacts on the Bullion & Jewellery Sector 

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Here’s how the India–UK Comprehensive Economic and Trade Agreement (CETA/CETA)—signed in May 2025 and finalised on July 24, 2025—will impact India’s bullion and jewellery exports:

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Key Impacts on the Bullion & Jewellery Sector 

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Here’s how the India–UK Comprehensive Economic and Trade Agreement (CETA/CETA)—signed in May 2025 and finalised on July 24, 2025—will impact India’s bullion and jewellery exports:

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1. Zero Tariffs on Jewellery Exports to the UK 

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• Prior to the agreement, Indian plain gold and diamond jewellery exports to the UK faced import duties of 2.5–4%. Under CETA, these tariffs have been slashed to zero, giving Indian exporters a significant competitive edge over UK domestic producers and rivals like Malaysia and Turkey.

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• Export volumes are expected to double within 2–3 years, especially benefiting major production clusters (Jaipur, Surat, Kolkata, and Coimbatore) and states like Rajasthan, contributing around 5% of India's gems and jewellery exports. 

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2. Zero Duties on Precious Metal Bullion Imports 

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• The agreement eliminates tariffs on gold and platinum bars imported into India from the UK (previously around 6% duty). 

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• Silver import duties from the UK are slated to gradually fall—currently around 5.4% and reaching zero over a decade—though this is still slightly above existing rates on similar imports from CEPA partners like the UAE. 

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3. Rebalance of Trade Flows

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• With zero duties on jewellery exports and bullion imports, Indian refiners and exporters are better positioned to manage bilateral trade. Indian refiners may gain access to  LBMA-certified bullion from the UK, enhancing the credibility and authenticity of metal sources. 

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• The pact could shift supply chain dynamics—UK becoming a preferred supplier of refined silver/gold bars, spurring growth in organised refining and vaulting services. 

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4. Domestic Refining & Value-Addition Challenges 

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• Some concerns remain that past agreements (e.g., India-UAE CEPA) inadvertently encouraged trading over refining, undermining domestic capacity. Unless structured properly, similar incentives could distort refining economics. 

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• Indian refiners will need policy support to avoid losing volumes to import-based arbitrage and to upgrade facilities toward international standards. 

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5. Socio-economic Benefits

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• Doubling exports to the UK is expected to generate employment across jewellery clusters, benefiting artisans and small manufacturers.

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• Enhanced export potential may help mitigate job losses in other markets, especially amid risks like U.S. tariffs on handmade Indian jewellery.

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Summary

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Strategic Considerations

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• Exporter Strategy: Focus on UK market expansion through high-margin plain gold and diamond jewellery, leveraging tariff advantages. 

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• Policy Advocacy: Domestic jewellery and bullion stakeholders should ensure mechanisms incentivise refining and value addition, not just trading. 

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• Diversification: Particularly for small-scale exporters and artisans, linking UK trade benefits with transparent, accessible quota systems and support schemes will be vital. 

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The India–UK CETA offers a transformative boost for India's bullion and jewellery sector—eliminating key tariffs, empowering exporters, and opening new growth corridors. However,  realising its full potential hinges on careful policy design to support refining and equitable market  access. 

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Disclaimer: This report contains opinion, which is not to be construed as investment advice. We cannot be held responsible  for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed  above. The opinions mentioned above are based on information, which is believed to be accurate, and no assurance can be  given for the accuracy of the information.

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Past results are no indication of future performance. Information provided in this  report is intended solely for informative purposes and is obtained from sources believed to be reliable. The information  contained in this report is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

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We do not offer any sort of portfolio advisory, portfolio management, or investment advisory  services. The reports are only for information purposes and are not to be construed as investment advice.