The recent announcement by US President Donald Trump to impose a 25 per cent tariff on Indian imports will severely impact India's gem and jewellery industry, a major contributor to the country's export economy, highlighted the jewellery manufacturers and exporters in a conversation.
Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, said, "The handmade jewellery exports could be hit hard. These products may no longer be accepted or sold there." He added that when the US earlier imposed a 10 per cent tariff, nearly 50,000 workers in the industry reportedly were affected.
“Previously, when there was a 10 per cent tariff, around 50 thousand people were suspected to be unemployed. If the same pattern follows with the new tariff hike, more than one lakh people could be impacted this time. Such an outcome would be very unfortunate for the jewellery industry,” Rokde noted.
Rokde stated, "This is very sad; the tariffs have been increased from 10 per cent to 25 per cent, which will be implemented from August 1". However, he also shared that this might impact America more than it will impact India. He stated, "Jewellery from India is exported across the world. In such cases, India had earlier found alternate markets like the European Union and the Middle East."
As per the data by the Ministry of Commerce, the United States is one of the biggest markets for Indian gems and jewellery, and it exports jewellery worth $9.9 billion to the US in the last financial year. Colin Shah, Managing Director of Kama Jewellery, also expressed concern over the move.
"With the US being one of the key export destinations, this will severely impact sectors like gems and jewellery that are heavily dependent on exports," he said.
He added that the industry has already been struggling due to prolonged geopolitical tensions between Russia-Ukraine and the Middle East for over two years. "With the return of Trump to power, his tariff threats have caused uncertainty in Indian markets. Going ahead, we expect trade activities with the US to remain muted," he said. However, industry stakeholders are now looking forward to the sixth round of India-US Bilateral Trade Agreement talks scheduled for the end of August, hoping for a deal or relief when the US counterparts arrive in India.
