Indian jewellery exporters expect fresh orders if US tariffs are reduced, while uncertainty over a proposed 100% duty continues to threaten trade and employment.
Highlights
- Indian gem and jewellery exporters are hopeful of relief from US import tariffs.
- The industry fears a possible 100% import duty on Indian jewellery entering the US.
- India’s gems and jewellery exports rose 13% to ₹14,310 crore in the first half of the fiscal year, according to the report.
- The industry expects fresh orders if the tariff burden is reduced..
Mumbai: India’s gems and jewellery industry is hoping for relief from US import tariffs as uncertainty over a proposed 100% duty threatens to disrupt exports to one of its largest overseas markets.
According to a report by Business Standard, exporters expect fresh orders if tariff pressures ease. However, the possibility of higher duties continues to create uncertainty for manufacturers and traders.
The concerns come amid changing US trade policies and international tensions affecting global commodity markets.
US Tariff Threat Raises Concerns
The United States remains a major destination for Indian gems and jewellery exports. Industry representatives believe that a proposed 100% import duty could make Indian products significantly more expensive in the American market.
The tariff uncertainty is linked to broader trade tensions between the US and Russia, particularly Washington’s efforts to discourage countries from purchasing Russian oil and natural gas.
US President Donald Trump has repeatedly expressed dissatisfaction with India’s purchases of Russian energy.
The report notes that these developments have created uncertainty for India’s gems and jewellery exporters, who are seeking clarity on future tariff arrangements.
Exporters Seek Government Support
The Gem and Jewellery Export Promotion Council (GJEPC) has urged continued government support to protect the sector from international trade disruptions.
Industry representatives say lower tariffs would help Indian exporters remain competitive and encourage overseas buyers to place new orders.
Rajeev Sharma, head of a research firm, said that uncertainty over trade policies has affected the industry’s outlook.
He noted that rising gold prices have also influenced jewellery demand, particularly in price-sensitive markets.
Jewellery Exports Show Growth
Despite global uncertainties, India’s gems and jewellery exports have shown signs of improvement.
According to figures cited in the report, exports increased by approximately 13% to ₹14,310 crore in the first half of the current fiscal year.
The industry is also looking to expand its presence in overseas markets to reduce dependence on individual countries.
Exporters believe that favourable trade arrangements and improved international demand could support further growth.
Gold Prices Add to Industry Challenges
Alongside tariff concerns, rising gold prices have created additional pressure on jewellery manufacturers and retailers.
Higher prices have affected consumer purchasing decisions, prompting some buyers to delay purchases or choose lighter jewellery.
Industry experts say festive and wedding-season demand could provide some support, although global economic uncertainty remains a major concern.
Industry Awaits Clarity on Trade Policy
Jewellery exporters are closely watching developments in US trade policy and India’s ongoing efforts to secure favourable market access.
The industry believes tariff relief could help restore buyer confidence, support fresh export orders and protect employment across India’s jewellery manufacturing hubs.
However, the proposed 100% tariff remains a potential threat rather than an implemented duty, and the actual impact will depend on future US policy decisions.
