Quick Summary
India's gems and jewellery sector, valued at over $85 billion domestically, is bracing for a challenging export season after the United States doubled tariffs on Indian gems and jewellery imports to 50%impacting nearly $10 billion worth of shipments, including $7-8 billion in diamonds. The new tariff regime raises the effective duty to 52.1% striking at major hubs in Surat, Mumbai, and Jaipur, where millions are employed in cutting, polishing and jewellery manufacturing. While exports face seve
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FAQ :
The US has doubled tariffs on Indian gems and jewellery imports to 50%, impacting nearly $10 billion worth of shipments, with $7-8 billion specifically in diamonds.
The domestic market, valued at $85 billion, is providing a crucial buffer, driven by demand during the festive season from Ganesh Chaturthi to Diwali.
The GST Council has cut GST on jewellery to 5%, exempted certain polished diamonds from IGST, and ensured faster provisional refunds, easing working capital constraints.
Domestic buyers tend to prefer elaborate, traditional jewellery, especially for weddings and festivals, whereas export markets favour more modern, minimalist designs.
The industry is banking on free trade agreements (FTAs) with countries like the UK, UAE, and Australia, and seeking to diversify exports beyond the US.
Exporters are seeking targeted support such as cheaper credit lines, interest burden relief, and the prompt operationalisation of the 90% provisional refund system.
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