Editor’s Note
This article examines how recent increases in U.S. visa fees are compounding existing tariff pressures on the global gems and jewellery industry, which depends heavily on skilled foreign workers.
Visa Fee Hike Compounds Tariff Woes
Donald Trump’s decision to hike H-1B visa fees has delivered a twin blow to the gems and jewellery sector, which is already reeling from tariffs. The industry relies on thousands of Indian artisans, technicians, and specialists working in the US on these permits.
“Indian jewellers employ gemologists, metallurgists, quality control scientists, IT professionals on H-1B visa,” said Poorvi Chothani, Immigration attorney and managing partner, LawQuest. “The additional cost of $100,000 may also deter employers from engaging H-1B workers. The jewellers may just offshore the roles–they will get these jobs done overseas.”
Impact on Specialists and US Operations
Jewellers point out that for the last couple of decades, specialists from India who can gauge the quality of diamonds and precious stones, and market them, will now find it difficult to travel on the H-1B visa. Of the 3,000 trading offices overseas, 300 are located in the US, many on 47th Street in New York’s Diamond District and in Los Angeles. At least 5-10% of their US workforce from India holds the H-1B visa.
Industry Voices Concern Over Talent and Demand
“While the gems and jewellery industry could never get as many visas like the IT sector, we have over the years sent employees who are qualified artisans, product designers and lab technicians,” said Dinesh Lakhani, director of Kiran Gems.
“Some of the senior talent in the jewellery business is on H-1B visa and given the uncertainty on the visa fees, one may see some of the talent returning to India,” said Shaunak Parikh, director of diamond trader Mahendra Brothers Pvt. Ltd.
Trump’s visa fee hike “could indirectly influence jewellery demand by impacting the sizable Indian professional community in the US”, according to Kirit Bhansali, chairman of Gem & Jewellery Export Promotion Council (GJEPC). “This community forms a strong consumer base for Indian jewellery, particularly during festive and wedding seasons. Any restrictions on their mobility or employment opportunities could, therefore, have a ripple effect on consumer sentiment and purchasing patterns.”
Context: India’s Diamond Dominance
India cuts and polishes nine out of 10 of the world’s rough diamonds and employs 959,000 workers in Gujarat factories. Last fiscal year, diamond exports alone stood at $13.26 billion, accounting for over two-fifths of total gems and jewellery exports of $29.9 billion. The number of H-1B visas the jewellery industry receives is tiny compared to IT, but this is a second blow after Trump imposed 50% tariffs on Indian goods.
