Editor’s Note
Jaipur’s renowned gem and jewelry sector, hit hard by recent tariffs, is showing signs of a nascent recovery. New trade agreements with the US and EU are providing crucial hope, with early indicators pointing to a rebound in exports.
Jaipur’s gem and jewelry industry is trying to recover from a tariff crisis. New hope has emerged from India-US and India-European Union trade agreements. Signs of increasing exports are being seen.
Jaipur, the capital of Rajasthan, is recognized worldwide for its colored gemstones and finished jewelry. Exports worth approximately Rs 18,000 crore are made from here every year. After tourism, this is considered the state’s largest foreign exchange earning sector. About four lakh artisans and workers are associated with this industry, whose livelihood depends on it.
The biggest strength of Jaipur’s jewelry market is its traditional craftsmanship. Even today, many artisans carve and polish colored gemstones by hand. This very skill gives Jaipur a distinct identity in the international market and attracts foreign buyers.
Tariffs imposed by the US last August dealt a severe blow to this industry. Especially since the tariffs were implemented just before the Christmas season, large-scale orders were canceled. As a result, exports of gems and jewelry recorded a decline of about 44 percent.
According to industry-related data, out of the total Rs 18,000 crore in exports, about Rs 3,200 crore came solely from the US. In such a scenario, the impact of the tariffs was extremely severe. Small exporters working on low margins had to bear the most losses.
During this period, sharp fluctuations in the prices of silver and gold made the situation even more difficult. For those involved in gem carving and jewelry making, this year was full of struggle.
Now, a positive atmosphere is building around the India-US and India-European Union trade agreements. Exporters are confident that this will reduce tariff barriers and orders will increase again.
Along with the US, demand for Indian jewelry is now also increasing in markets like Europe, Australia, and the UAE. Because of this, Jaipur’s jewelry industry appears to be moving back towards strength.
