Going through a pointy blow from the US’ steep tariff hike, India’s gem and jewelry export trade has sought authorities intervention to cushion the affect and maintain its competitiveness in world markets. The sector finds itself at a crossroads, as rivals like Turkey, Vietnam and Thailand proceed to take pleasure in considerably decrease tariffs, making Indian merchandise much less engaging within the profitable American market.
The US accounts for almost 30 per cent — or near $10 billion — of the whole gem and jewelry exports.
Kirit Bhansali, chairman of the Gem & Jewelry Export Promotion Council (GJEPC), warned that until corrective motion is taken, India dangers shedding its hard-won place as a key provider to the US. The menace isn’t simply monetary — it’s strategic.
Bhansali expressed concern that worldwide commerce might begin rerouting by way of low-tariff international locations like Mexico, Canada, UAE, Oman and Turkey, undermining transparency and sidelining respectable Indian gamers. That is notably alarming since 85 per cent of exports from the SEEPZ Particular Financial Zone — that employs over 50,000 folks — are to the US. For reduce and polished diamonds, the US stays the marketplace for almost half of India’s complete exports. A protracted tariff standoff, Bhansali warned, might carry the trade to a grinding halt.
The trade has requested the federal government to roll out a focused scheme — much like the Responsibility Downside — that will reimburse 25–50 per cent of the brand new US-bound tariff burden between August and December 2025. GJEPC believes that is important to stop disruption throughout the worth chain, stretching from artisanal karigars to large-scale producers.
Along with tariff aid, exporters are calling for short-term monetary respiratory area. They’ve requested a six-month deferment on curiosity funds, a measure that echoes the pandemic-era assist prolonged by lending establishments. With cancelled orders threatening to lock up working capital and push items in the direction of non-performing asset (NPA) standing, the Council has urged the federal government to permit SEZ items to launch unsold inventory into the home market.
The sector can also be grappling with cargo delays triggered by world uncertainty. To deal with this, banks are being requested to increase pre-shipment mortgage due dates by 90 days with out penalties. The GJEPC has additionally known as for the reintroduction of the curiosity subvention scheme, which might supply much-needed liquidity throughout a interval of heightened danger. It has requested each the Centre and the RBI to think about short-term aid packages tailor-made to the sector’s wants.
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Mockingly, whereas the menace looms giant, latest knowledge factors to a short-term spike in commerce. Gross exports of gems and jewelry rose by almost 16 per cent in July 2025, reaching $2.18 billion (Rs 18,756 crore), up from $1.88 billion (Rs 15,700 crore) a 12 months in the past. Imports too surged 26.5 per cent, as merchants rushed to finish orders earlier than the tariff hike took impact in August. An identical surge was seen in reduce and polished diamond exports, which jumped almost 18 per cent to $1.07 billion (Rs 9,230 crore), largely as a consequence of pre-emptive stocking by world patrons.
This uptick, nonetheless, could also be short-lived.
Colin Shah, MD of Kama Jewellery, termed July’s efficiency as a “cautionary uptick” — a closing flourish earlier than the sector feels the complete weight of tariff-induced drag. Whereas new commerce agreements just like the India-UAE CEPA have unlocked alternatives, the broader panorama stays unstable. Excessive gold costs, geopolitical uncertainty, and unstable steel markets proceed to cloud the outlook, he stated.
The festive and wedding ceremony seasons in India might assist soak up among the shock by boosting home demand. However for the export-reliant section, all eyes at the moment are on the trajectory of India-US commerce negotiations. With the present 50 per cent tariffs in place, sustaining latest progress might show tough, and trade leaders are hoping that policymakers will step in earlier than the glint fades.