Gold bangles are displayed at a jewellery store in Mumbai.
Credit: DH photo
Mumbai: The US-India trade deal offers vital relief to India’s gem and jewellery sector amid US tariff pressures, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), the apex body of the industry, which is undergoing a major transformation.
“The US accounts for 31 per cent (US$ 9.23 billion) of FY 2024–25 exports—India’s largest market. Tariff cuts lower costs for US importers, provides immense relief to diamond jewellery manufacturers , boost competitiveness of Indian diamond jewellery, revive demand, and stabilize operations,” said Kirit Bhansali, Chairman, GJEPC.
“The GJEPC is optimistic that based on India signing the trade deal, loose diamonds and coloured gemstones from India will get the benefit of zero duty imports in USA vide Annexure 3 of the US reciprocal tariff list, providing much-needed support for diamond exports. This will enhance trade flows, rebuild confidence, and deliver a strong sector-wide boost,” he added.
The GJEPC also lauded the efforts of prime minister Narendra Modi, union industries and commerce minister Piyush Goyal and US president Donald Trump.
The U.S. remains India’s largest gem and jewellery export market, accounting for 31% (US$ 9.23 billion) of total exports in FY 2024–25.
In 2025, reciprocal U.S. tariffs disrupted trade flows to the USA sharply. Duties on polished diamonds and coloured gemstones surged from 0% to 10% in April, then to 50% by August—unviable for these raw materials, which strained working capital, liquidity, and margins. Jewellery duties jumped from 5–7% to 55–57%.
This led to a 44.42% plunge in India’s gem and jewellery exports to the U.S. from April–December 2025 (US$ 8,691.25 million to US$ 3,862.08 million), with key categories hit hard: Cut & Polished Diamonds: -60.11% (US$ 3,636.36 million → US$ 1,450.38 million), Studded Gold Jewellery: -24.54% (US$ 2,113.46 million → US$ 1,594.83 million), Plain Gold Jewellery: -28.89% (US$ 258.53 million → US$ 183.84 million).