Editor’s note: Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council, has offered his thoughts on how the U.S. “reciprocal” tariffs will affect Indian gem and jewelry exports. His comments are below:
(PRESS RELEASE)The U.S. announcement of a sweeping 50% tariff on all Indian goods is a deeply concerning development. This move would have far-reaching repercussions across India’s economy — disrupting critical supply chains, stalling exports, and threatening thousands of livelihoods.
The Indian gem and jewellery sector, in particular, stands to be severely impacted. The United States is our single largest market, accounting for over $10 billion in exports — nearly 30% of our industry’s total global trade. A blanket tariff of this magnitude is severely devastating for the sector.
There is significant dependency on the US market, as 85% of exports from SEEPZ SEZ, which provides 50,000 jobs, is directed there. For cut and polished diamonds, half of India’s exports are US-bound. With revised tariff hike, the entire industry may come to a standstill, placing immense pressure on every part of the value chain — from small karigars to large manufacturers.
What adds to the concern is that competing manufacturing hubs such as Turkey, Vietnam and Thailand continue to enjoy significantly lower tariffs of 15%, 20% and 19% respectively, making Indian products relatively less competitive in the U.S. market. This imbalance, if unaddressed, could erode India’s long-standing position as a key supplier to the U.S.
We are also concerned about the possibility of trade rerouting through low-tariff destinations such as Mexico, Canada, Turkey, UAE, or Oman — undermining the spirit of legitimate trade and impacting transparency.
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Despite these challenges, the Indian gem and jewellery industry remains resilient. The recent success of IIJS Premiere 2025, the world’s largest jewellery fair, was a testament to strong domestic demand, with projected business ranging from ₹70,000 crore to ₹1 lakh crore. The domestic market — currently pegged at $85 billion — is expected to grow to ₹130 billion in the next two years. This domestic growth offers some cushion, particularly for the diamond sector.
Simultaneously, GJEPC is actively exploring new markets. The upcoming Saudi Arabia Jewellery Exhibition (SAJEX) is one such initiative aimed at opening fresh avenues in emerging regions and diversifying India’s export destinations.
While we understand that no trade talks can happen in the current scenario, we urge the Government for immediate relief. We appeal for policy reforms and extensive support to aid the industry in these extraordinarily challenging times.
As a responsible industry and as citizens of this nation, we are respectfully aligned and stand in solidarity with the Government of India. In these testing times, we remain committed to protecting the integrity of our trade and upholding the nation’s economic interests with unity and resolve.
