Editor’s Note
This article highlights the immediate economic pressures facing India’s gemstone industry following recent U.S. tariff announcements. While the focus is on the potential for job losses and market disruption in Jaipur, it also notes the sector’s resilience and intention to seek new opportunities. The situation remains fluid as businesses and policymakers assess the full impact.
Jaipur, India’s largest center for colored gemstones, is facing significant anxiety among traders due to the 50% tariff imposed by US President Donald Trump on India. The threat of unemployment looms large. Despite this, traders have stated they will create new markets.
Jaipur is the country’s largest center for gems, or colored stones, where exports of over 300 types of colored stones amount to approximately 17,500 crore rupees. Of this, about 3,200 crore rupees come from the US alone. The 50% tariff imposed by US President Donald Trump on India has caused great concern among traders. American buyers have started canceling orders.
The business of Jaipur’s sparkling colored gemstones is losing its luster due to Trump’s uncertain decisions. Until now, Jaipur’s gem traders had an advantage over all countries in the world due to cheap labor and low tariffs on gems and jewelry in the US.
Jaipur’s gems and jewelry exports are worth about 17,500 crore rupees. Of this, 3,200 crore rupees in exports go solely to the US. But now Trump has imposed tariffs of up to 50%. Gem exporters say they are competing with low-tariff countries like China, Thailand, and Hong Kong. The margin in this business is only 6 to 10%. With this tariff, we will withdraw from US exports.
Convenor of the Color Stone Business, DP Khandelwal, said that Jaipur’s exports will be greatly impacted. Many trained artisans will become unemployed. The government should find some way to provide support, but we stand with the country. The largest export from India is emeralds.
Gem traders say the government will have to provide some package to compensate for the losses. Every month, gems and jewelry worth 3,200 crore rupees are traded from Rajasthan to the US. About 200,000 people in Rajasthan are associated with this business. If the business is affected, unemployment will also increase. However, businessmen believe the government will find a middle path.
Alok Sonkhia, President, Jaipur Gems and Jewellery Association.
Jaipur’s former Maharaja Man Singh settled colored gemstone traders in Jaipur over a hundred years ago. Since then, Jaipur has remained the largest center for gem trade in the country. About 90-95% of raw materials reach Jaipur from countries around the world, where they are processed in factories and sent abroad. However, in the last few years, the gems and jewelry trade has grown in the country. Thus, purchasing power within the country is increasing so that the shortfall in US exports can be compensated by the local market.
(Report by Sharat Kumar)