MUMBAI – India’s gem and jewellery industry, like the rest of the world, is analysing the evolving global economic landscape due to the reciprocal tariff announcement by the United States on countries around the world.
The Gem & Jewellery Export Promotion Council (GJEPC), which promotes Indian gem and jewellery exports, understands the U.S. administration’s intent to address trade and tariff imbalances through reciprocal tariffs, but urges the United States to uphold the spirit of the longstanding trade partnership between India and the United States, which has been built on mutual respect and shared economic interests.
The Trump administration’s announcement of a 27% reciprocal tariff on Indian gem and jewellery exports to the U.S. would be a significant burden on Indian exporters and American consumers alike.
While the tariff’s application to competing nations presents both challenges and opportunities, it is likely to significantly impact India’s diamond and jewellery sector—a cornerstone of its exports to the United States.
“In the long term, we foresee a reshaping of global supply chains,” the GJEPC said.
“In the short run, we anticipate challenges in sustaining India’s current export volume of USD 10 billion to the U.S. market. We urge the Government of India to progress the Bilateral Trade Agreement between India and the U.S., as it would be crucial in navigating the tariff issues and securing the long-term interests of the sector.”
Additionally, the GJEPC is actively engaging with stakeholders to address these risks and to advocate balanced solutions that ensure continued access to the U.S. market.
Mr Kirit Bhansali, Chairman, GJEPC
