The sparkle of strategy
India’s gems and jewellery industry—long the silent artisan of global luxury—is preparing for a louder debut. With the India–UK Free Trade Agreement (FTA) signed in late 2024, a sector that cuts and polishes nine out of every ten diamonds in the world now seeks to etch its name higher up the value chain. The FTA is less about tariffs and more about trust: aligning hallmarking standards, securing duty-free access for lab-grown diamonds, and—critically—embedding “Made in India” into the language of authenticity.
The stakes are enormous. Gems and jewellery accounted for $42.2 billion in exports in FY2023–24, about 15% of India’s total merchandise exports (DGFT data). The UK, the fifth-largest buyer, currently imports roughly $1 billion annually, but GJEPC projects this could triple to $3 billion within five years, particularly on the strength of lab-grown diamonds and hallmark gold jewellery.
Reframing value, not just volume
India’s traditional dominance—90% of the world’s polished diamonds pass through Surat and Mumbai—has long been undercut by its limited presence in branded retail. The UK FTA offers a pathway to change that. By ensuring mutual hallmark recognition between India’s BIS and the UK’s Hallmarking Council, the deal eliminates a key bottleneck in authenticity verification.
“Consumers in London or Birmingham will soon see Indian hallmark gold and lab-grown stones certified to the same standards as British products,” explains Colin Shah, former GJEPC Chairman. “That unlocks consumer trust—and trust is the new tariff.”
The hallmarking alignment dovetails with India’s digital hallmarking and blockchain provenance initiative, launched under the Ministry of Commerce’s Trade Infrastructure for Export Scheme (TIES). This push for traceability—especially for synthetic stones—makes it possible for UK regulators and buyers to verify every step from creation to certification.
Lab-grown: the sustainable sparkle
The global market for lab-grown diamonds (LGDs) has expanded to an estimated $22 billion in 2025, up from $12 billion in 2021 (Bain & Co). India, which produces about 15% of global LGD output, is scaling fast. Surat alone houses over 1,200 CVD reactors, and industry experts forecast $2 billion in LGD exports by FY2026.
However, credibility remains a bigger gem than capacity. Western consumers often confuse LGDs with imitation stones. To counter this, Indian exporters are tying up with UK-based jewellery schools and influencers to educate buyers. Brands like Limelight Diamonds and Greenlab are already collaborating with Selfridges and Liberty London to launch ethically certified lines.
London: the runway for Indian luxury
Beyond sales, London serves as the brand launchpad. “The UK is where India can transform craftsmanship into narrative,” says Neha Dani, a contemporary jewellery artist whose handcrafted pieces now feature in Sotheby’s showcases.
London’s post-Brexit trade stance—seeking non-EU sourcing diversity—aligns perfectly with India’s ambitions. With reduced logistics friction and a growing e-commerce infrastructure, even mid-sized Indian jewellery firms can now reach European consumers directly. E-commerce jewellery sales in the UK grew 18% year-on-year in 2024, driven by customization and ethical preferences.
AI and artistry meet the loupe
Technology is recutting the business model. AI-driven design tools are helping Indian workshops translate consumer data into bespoke creations within days. In October 2025, ChatGPT Commerce’s design pilot, launched with select jewellery houses, demonstrated how conversational AI could personalize digital catalogues for buyers across London and Dubai.
AI-aided sketch generation—where algorithms suggest motifs from Indian art to match Western fashion cues—is blurring the line between tradition and trend. “We are exporting not just stones, but stories,” says Ramesh Parekh, a Surat-based exporter integrating AI-driven inventory and design systems.
Sustainability: polishing the conscience
Environmental compliance has become the new hallmark of luxury. With the EU’s 2025 Sustainable Product Initiative and UK’s Green Claims Code, retailers now demand verified low-impact sourcing. India’s Ministry of Commerce has responded with incentives for solar-powered polishing units, water recycling systems, and zero-waste certification for exporters (The Indian Express, Oct 2025).
This convergence of craftsmanship and clean technology positions India as a “green jeweller to the world.” Lab-grown diamonds, with a 70% lower carbon footprint than mined stones, could become the centerpiece of this sustainable luxury narrative.
Challenges under the sheen
Still, the path isn’t flawless. Roughly 65% of India’s diamond polishing units are family-run SMEs with limited access to certification technology or international branding capital. The government’s Credit Linked Capital Subsidy Scheme (CLCSS) and India Diamond Institute’s digital certification training are helping—but adoption remains uneven.
Counterfeiting, too, continues to haunt exporters. Industry experts estimate that fake certification and mixed-origin diamonds account for 5–7% of shipments—a reputational risk that could undercut the credibility gains of the FTA unless tackled by robust traceability infrastructure.
A new chapter in global luxury
At its heart, the India–UK FTA is less a policy document and more a design brief for India’s luxury future. It invites Indian jewellers to move from anonymous subcontracting to branded storytelling; from polishing others’ gems to polishing their own image.
“Every hallmark is now a handshake of trust,” remarks Vipul Shah. “That’s what will make ‘Made in India’ shine brighter than the stone itself.”
London, with its centuries-old jewellery culture and cosmopolitan consumer base, may well become the proving ground for India’s ascent from a workshop economy to a design-driven luxury powerhouse. If the execution matches the ambition, the next British heirloom may well be an Indian signature.
- FTA springboard: GJEPC expects UK sales to rise 2.5–3x within five years, driven by lab-grown exports.
- Traceability + hallmarking = pricing power: Certified authenticity is India’s new luxury language.
- AI illustration brief: Close-up of an artisan’s loupe over a lab-grown diamond ring, subtle India–UK color ribbon, boutique box; luxe editorial, shallow depth; 4:5.
- Sustainability frontier: 70% lower carbon footprint for LGDs; clean-tech polishing units emerging in Surat and Mumbai.