Editor’s Note
The Indian gem and jewellery sector has hailed a new U.S. interim trade deal granting duty-free access for diamonds and coloured gemstones, calling it a pivotal ‘turning point’ for the industry.
Mumbai, February 7 (Language) The Indian gem and jewellery industry has welcomed the announcement of duty-free access for diamonds and coloured gemstones in the United States under an interim trade agreement on Saturday. The industry says this is a ‘turning point’ that will provide new strength to the sector.
Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), said in a statement:
India and the US announced on Saturday that they have reached an agreement on the framework of an interim trade deal, under which both sides will reduce import duties on several items to boost bilateral trade.
Under this framework, duties on several items, including generic drugs, gemstones, diamonds, and aircraft parts, will be reduced to zero. This will boost the global competitiveness of Indian products and the ‘Make in India’ initiative.
Bhansali explained that under this agreement, duties on jewellery have been reduced to 18 percent, providing immediate relief. He expressed hope that after a full agreement is reached, duties on diamonds and coloured gemstones will be completely eliminated.
He also said that the Council has raised the issue of including lab-grown diamonds (LGD) and artificial gemstones in the US duty exemption list with the government.
Rajesh Rokade, Chairman of the All India Gem & Jewellery Domestic Council (GJC), said that the zero-duty status will provide Indian exporters with unprecedented access to the US market.
Colin Shah, Managing Director of Kama Jewelry, said that despite India being a global hub for diamond processing, it was severely impacted by trade duties.