Editor’s Note
The recent India-U.S. trade agreement, which eliminates tariffs on coloured gemstones and jewellery, offers a vital lifeline to Jaipur’s export-driven industry. This development underscores how targeted trade policy can directly bolster key economic sectors and regional hubs.
The tariff cut under the India–US trade deal has brought major relief to Jaipur’s gemstone and jewellery industry, which had suffered heavy losses over the past year. The removal of duties on coloured gemstones and jewellery under the new trade framework has sparked renewed optimism among exporters in the Pink City.
With annual exports of coloured gemstones and finished jewellery exceeding Rs 18,000 crore, Jaipur is one of the world’s most important gemstone hubs. A significant share of this trade is linked to the United States, making the sector particularly vulnerable to last year’s tariff hike.
Jewellers in Jaipur are now expressing cautious optimism. Naveen Jain, a leading gem and jewellery exporter, says the new framework has finally given exporters reason to breathe easy. As proprietor of Lord Krishna International, Jain has a strong presence in the US market, with nearly 70 per cent of his exports destined for American buyers.
Following the tariff hike imposed by the United States last year, Jain says orders from US clients came to an abrupt halt. Buyers informed him that the sharp increase in duties had made his products commercially unviable, leading to the suspension of nearly 70 per cent of his exports.
Industry representatives say the tariff hike in August last year caused a sharp decline of over 40 per cent in the gems and jewellery trade, resulting in massive losses. Of Jaipur’s total exports worth Rs 18,000 crore, more than Rs 3,200 crore is linked to the US market, making the impact of higher tariffs particularly severe for the city.
For an industry that spent much of the past year grappling with shrinking orders, job losses and collapsing margins, the tariff rollback is more than a policy adjustment—it is a lifeline restoring confidence to one of Rajasthan’s most globally integrated sectors.
Alok Sonkhiya, President of the Jaipur Jewellers Association, welcomed the development, saying,
Beyond tourism, the gems and jewellery industry is a cornerstone of Rajasthan’s economy, employing nearly four lakh artisans. Many of them still cut and polish coloured gemstones entirely by hand, a skill that defines Jaipur’s global reputation. These traditional livelihoods were placed at serious risk amid volatile international trade conditions driven by fluctuating tariffs.
The zero-tariff relief has also been welcomed by the National US–India Chamber of Commerce (NUICC), which described it as “a transformational milestone in strengthening US–India bilateral trade”. Dr Purnima Voria, President of NUICC and President of the Rajasthan Foundation (New York, USA), said the decision would particularly benefit Jaipur and Rajasthan’s globally renowned gem and jewellery ecosystem.
The zero-tariff framework is expected to revitalise trade flows and inject fresh momentum into Jaipur’s gems and jewellery industry, widely regarded as the global capital of coloured gemstones.