India’s gems and jewelry exporters, citing excessive dependency on the US market, have expressed fears of job losses as steep 50 per cent tariffs would make Indian exports uncompetitive, the Gem and Jewelry Export Promotion Council (GJEPC) stated in a press release on Monday.
The exporters stated that the US tariffs would have far-reaching repercussions throughout the financial system—“disrupting crucial provide chains, stalling exports, and threatening 1000’s of jobs”—because the US is the sector’s single largest market, accounting for over $10 billion in exports, practically 30 per cent of the trade’s complete world commerce.
“A blanket tariff of this magnitude is severely devastating for the sector. There’s important dependency on the US market, as 85 per cent of exports from SEEPZ Particular Financial Zone (SEZ), which supplies 50,000 jobs, are directed there,” the GJEPC stated in a press release.
This assumes significance because the sector has witnessed solely marginal progress over time. Exports throughout all of the earlier 5 years remained inside the vary of $35 billion to $40 billion, apart from FY2020–2021 when exports plunged to $26.61 billion as a result of COVID-19 pandemic.
In line with a Nationwide Council of Utilized Financial Analysis (NCAER) survey, in 2019 there have been a complete of 9.89 lakh items and 42.89 lakh staff within the gems and jewelry sector in India. The sector, with complete exports of round $38.11 billion, accounted for 8.45 per cent of India’s merchandise exports in 2022–23 and is among the many prime 5 main overseas alternate earners for the nation, the GJEPC stated.
“In FY2022–2023, exports of gems and jewelry decreased by (-) 2.94 per cent to $38.11 billion from $39.26 billion in FY2021–22,” the GJEPC stated.
Exporters stated that competing manufacturing hubs akin to Turkey, Vietnam and Thailand proceed to get pleasure from considerably decrease tariffs of 15 per cent, 20 per cent and 19 per cent respectively, making Indian merchandise comparatively much less aggressive within the US market.
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“This imbalance, if unaddressed, may erode India’s long-standing place as a key provider to the US,” exporters stated.
“We’re additionally involved about the potential of commerce rerouting by way of low-tariff locations akin to Mexico, Canada, Turkey, UAE, or Oman—undermining the spirit of official commerce and impacting transparency,” the GJEPC stated.
Demand for presidency assist
The exporters requested the federal government to introduce a focused scheme on the traces of Obligation Disadvantage or a reimbursement scheme, protecting roughly 25–50 per cent of the brand new tariffs imposed on gems and jewelry exports to the US from August to December 2025.
“This initiative goals to partially offset the impression of the brand new tariff construction, mitigate monetary pressure on exporters, scale back the danger of order cancellations, and assist keep India’s market share in an more and more aggressive and price-sensitive world market,” the exporters stated.
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With respect to working capital amenities sanctioned, lending establishments could also be permitted to permit a deferment of curiosity for six months, from August 1, 2025 to January 1, 2026, as was finished in the course of the COVID-19 interval, the GJEPC stated.
By permitting reverse job work to SEZs, the SEZ items would be capable to utilise their equipment and interact their labour for the manufacture and provide of jewelry within the home tariff space (DTA), which could possibly be a lifeline throughout this disaster. The obligation ought to be on the worth of obligation foregone on the duty-free inputs utilized by the SEZ unit in manufacturing jewelry for the DTA,” the exporters stated.