Q) What impact does the US market have on India’s gem and jewellery exports?
A: In FY 2024-25, India’s gem and jewellery exports to the US stood at USD 9.97 billion, accounting for about 33% of India’s total exports of around USD 30 billion to the world. In other words, nearly one-third of India’s gem and jewellery exports go to the US, reflecting its importance as India’s most significant export destination.
Q) How have US tariffs impacted India’s gem & jewellery industry?
A: The new US tariffs raised duties on polished diamonds and coloured gemstones from 0% to 50%, and jewellery from 5–7% to 55–57%. As a result, exports to the US fell by about 40% during April–June 2025. If this continues, exports, jobs, and trade patterns will be significantly affected in the long run.
Q) What has been the immediate and short-term response from the industry?
A: Many exporters frontloaded shipments to the US ahead of tariff hikes to meet seasonal demand. This has cushioned short-term losses for 2025. At the same time, GJEPC is exploring new markets like UAE, UK, Saudi Arabia and has launched SAJEX 2025 in Saudi Arabia to diversify export opportunities.
Q) What is the risk to employment in India’s gem & jewellery sector?
A: The industry employs over 4 million workers. If tariffs persist, about 175,000 jobs could be at risk, especially in Surat (diamond cutting & polishing) and Mumbai (jewellery manufacturing). Since India handles 85–90% of the world’s loose diamond polishing, jobs are not immediately threatened, but long-term risks remain if trade shifts to competitors like Thailand, Turkey, or African beneficiation centres.
Q) What support does the industry expect from the Indian government?
A: Key asks include:
- Cash reimbursement of 25–50% of extra US tariffs (Aug–Dec 2025).
- Banking relief – moratorium on working capital interest, reintroducing interest equalisation, and concessional loans.
- SEZ flexibility – allow reverse job work and pipeline stock sales.
- Worker welfare – loan restructuring, education grants for daughters, and temporary inclusion in Ayushman Bharat.
These measures would reduce financial stress and protect jobs.
Q) Could this situation create trade shifts away from India?
A: Yes. In the medium term, some diamond trading could shift to UAE, Thailand, Vietnam, larger-size diamonds to Israel, and studded jewellery to Turkey. Silver jewellery may also move to Thailand and Turkey. However, India’s dominance in diamond cutting & polishing (85–90% global share) makes it hard to replace quickly. To mitigate risks, the government is pushing new FTAs with EU and GCC to open alternative markets.
