New Delhi [India], July 15 (ANI): Jewellery exporters hailed the India-UK Comprehensive Economic Partnership Agreement (CETA) for its potential to scale up gems and jewellery exports as the first batch of consignments was dispatched to the United Kingdom.
Speaking to ANI at the India-UK CETA export flag-off ceremony held at the Santacruz Electronic Export Processing Zone (SEEPZ), sector representatives noted that the transition to a zero-duty regime removes a significant entry barrier. Previously, Indian gems and jewellery faced a 4 per cent tariff in the UK, which has now been dismantled under the bilateral agreement.
Dnyaneshwar B. Patil, Development Commissioner of SEEPZ, stated that the commencement of these shipments marks a significant milestone for the export processing zone, which currently registers an overall annual export volume of Rs 37,000 crore.
“Our expectation is that next year it will be more than Rs 6,000-7,000 crore for UK. Benefit is employment generation. Since tax on the electronic sector is coming down from 14% to 0% production will increase,” Patil stated.
While the United States remains the primary destination for these goods, shipments to the UK are expected to witness robust expansion.
“Jewellery and diamonds are being sent to the UK today as well. We have selected some parcels. This is a big achievement for India,” Patil said.
“Because the tax export used to be 4% for gems and jewellery. Now it will be 0%. And it will be smooth. Country of origin and all these criteria will be smooth. So our exports will grow a lot,” he added.
The development commissioner outlined specific growth targets for the upcoming financial year, noting that the trade pact will also yield substantial employment benefits. Out of the roughly 80,000 individuals employed at SEEPZ, the gems and jewellery segment accounts for more than 60,000 workers.
“The Government of Maharashtra has told us that in Gems and Jewellery their exports will reach up to Rs 5,000 crore from around Rs 3,000 crore now,” Patil added.
Adil Kotwal, President of the SEEPZ Gems and Jewellery Manufacturers Association, emphasised that the elimination of tariffs gives Indian manufacturers a direct edge over regional competitors that continue to face import duties in the UK market.
“Our export from SEEPZ is Rs 35,000-36,000 crore total. Out of that, the UK’s export is Rs 3,000 crore. It can double this year,” Kotwal said.
“The goods going from China and Bangkok to England, there is a duty. We will not have a duty from there. So, all the production will come to India. Those who will purchase in UK, they will not have to pay duty. So, we hope that our turnover will double,” he added.
Kotwal further explained that the expansion of the jewellery sector is inherently tied to job creation due to the artisanal nature of the production process.
“For jewellery, we need people. Machines do not do much work. People do it by hand. So, employment will increase. To make jewellery. So, it is beneficial for employment,” Kotwal stated.
Additionally, the electronics manufacturing sector at SEEPZ stands to benefit from the elimination of a 14 per cent tariff. Vijay Gujarathi, Chairman of the Electronics Processing Zone, Electronics Manufacturers Association, stated that the trade agreement aligns with broader global supply chain shifts and domestic manufacturing initiatives.
“See, for electronics manufacturers, for electronics industries, it is beneficial in two ways. One, it grows for China plus one strategy. And plus, it grows for ‘Make in India’,” Gujarathi said.
“Mostly, in electronics, automated machines are used. But in China plus one strategy, where low cost labour is utilized, it will help to fuel the growth of the electronics industry,” Gujarathi added. (ANI)
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