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Indian gems, jewellery exports face major blow from US tariff; industry seeks govt intervention
Indian gems, jewellery exports face major blow from US tariff; industry seeks govt intervention
Mumbai, Aug 27 (PTI) The US move to impose a 50 per cent tariff on gems and jewellery imports from India is a major blow to the country's export-driven industry, threatening jobs, denting global competitiveness, and straining bilateral trade ties, industry experts said, urging the government to take urgent measures to safeguard the sector.
Gem & Jewellery Export Promotion Council (GJEPC) Chairman Kirit Bhansali told PTI that the imposition of a 50 per cent tariff on gems and jewellery imports from India by the US is a severe setback for the industry.
"The US is our largest market, and exports during April-July 2025, had already declined 32 per cent year-on-year to USD 2.12 billion. With the new tariff in place from August 27, we fear exports to the US could fall by over 75 per cent, impacting polished diamonds, jewellery, and coloured gemstones alike," Bhansali said.
The gems and jewellery exports to the US touched nearly USD 10 billion in 2023-24, according GJEPC data.
This threatens the livelihood of nearly 1.7 lakh workers, particularly in Surat, Mumbai, and Jaipur, he stated.
"We urge the government to step in with urgent support measures such as a targeted 'duty drawback' or reimbursement scheme, relief on working capital, and permission for reverse job work and limited domestic tariff area (DTA) sales in SEZs," Bhansali added.
All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde told PTI, "It's not merely a trade restriction, it's a direct blow to the heart of India's artisanal legacy. This tariff threatens to erode decades of trust and trade relations built painstakingly with American buyers," he stated.
The abrupt tariff escalation is not just an export concern, it's a macroeconomic jolt, GJC Vice Chairman Avinash Gupta said.
"The pressure on the rupee and rising gold prices will ripple through domestic markets, dampening consumer sentiment and squeezing small retailers. We're staring at a dual crisis: weakened global competitiveness and shrinking local demand. The government must urgently recalibrate its trade strategy to shield this vital sector," Gupta added.
Source: LiveMint
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