Editor’s Note
A recent trade agreement between India and the U.S., applying zero duty to diamonds and colored gemstones, offers a potential boost for Rajasthan’s traditional industry and sparks hope for improved exports. However, the exclusion of finished jewelry from this concession highlights a remaining hurdle for the sector’s full revival.
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Expectations for improved exports have been sparked by the India-US trade deal. Rajasthan’s traditional diamond, colored gemstone, and jewelry industry is set to receive a boost.
Under the India-US trade deal, zero duty has now been applied to diamonds and colored gemstones. This has given new hope to Rajasthan’s traditional jewelry industry. However, the demand for zero duty on jewelry remains unmet. This decision shows the potential for the industry’s revival, especially for the export of colored gemstones from Rajasthan.
Welcoming this decision, Ajay Kala, Secretary of the Jaipur Chamber of Commerce, said that the United States is the biggest market for Rajasthan’s colored gemstones. This new rule will give exports a renewed pace, which had slowed down in recent years. He informed that colored gemstones worth approximately 5000 crore rupees were being sent to the US from Rajasthan every year, but exports had recently declined by 40% due to increased tariffs. With zero duty now in effect, there is hope to stop this decline and increase exports again.
However, after this decision, there is hope for improvement in colored gemstone exports. But jewelry still bears the burden of 6% basic duty and 18% tariff, totaling 24% duty. Rajiv Jain, former Chairman of the Gems and Jewellery Promotion Council, said that this decision is welcome, but the demand for zero duty on jewelry has not been met. He also mentioned that before August 27 last year, only 6% duty was levied on jewelry. The industry hopes that duty on jewelry will also be reduced in the future.
In the past year, India’s exports of cut and polished diamonds to the US have fallen by more than 60%. From April to December 2024, these exports were $3.64 billion, which decreased to $1.45 billion from April to December 2025. Industry organizations believe that the zero-tariff arrangement will also strengthen polished diamond exports. This will boost the industry and improve the export situation.
Annual exports of colored gemstones from Rajasthan to the US are around 5,000 crore rupees, which had declined recently due to tariff increases. Now, with zero duty in effect, there is hope for improvement in these exports. Polished diamond exports may also increase due to this policy.
Under the India-US trade deal, the application of zero duty on diamonds and colored gemstones could lead to improved and strengthened exports for Rajasthan’s jewelry industry. Jewelry still has 6% basic duty and 18% tariff, totaling 24% duty applied, while zero duty has been applied on colored gemstones.
Polished diamond exports had fallen by more than 60% due to tariff increases. Now, with zero tariff in effect, it is expected to receive a boost.