US Tariffs Shake India's Gems and Jewellery Sector

The recent imposition of US tariffs, effective April 2025, on Indian gems and jewellery has sent shockwaves through the industry. With a proposed tariff of around 27%, this move threatens to significantly impact India's exports to its largest market, the US.

The Numbers Tell the Story

India's gems and jewellery sector is heavily reliant on exports, with the US accounting for 30.29% of its total exports, valued at $9.95 billion in FY 2023-2024. The US, importing $89.12 billion worth of gems and jewellery globally in CY 2024, sourced 12.99% from India. This dependency makes the sector particularly vulnerable to changes in US tariff policies.

Challenges Multiply for the Sector

Already facing hurdles from changing consumer preferences, the rise of lab-grown diamonds, and high gold prices, the sector now braces for further declines in exports and potential job losses due to the new tariffs. The industry's exports have seen a 14.5% drop to $32.3 billion in the 2023-24 fiscal year, with projections indicating a further fall to $8.6 billion in 2024-25.

Call for Strategic Negotiations

The sector urges the Indian government to engage in strategic negotiations with the US to mitigate the adverse impacts of these tariffs. Ensuring the long-term sustainability of the gems and jewellery sector is crucial for India's economy and the millions employed within this industry.