Editor’s Note
This interim trade agreement marks a significant step for India’s gem and diamond exporters, granting them tariff-free access to the critical US market. While the exclusion of finished jewelry from this zero-tariff provision presents a continued hurdle, the overall industry outlook is one of strong optimism for enhanced export opportunities.
India’s gems and jewelry industry has warmly welcomed the India-US interim trade agreement announced on Saturday (February 7). Under this agreement, US tariffs on Indian gems and diamonds have been reduced to zero. The industry believes this will provide Indian exporters with unprecedented access to the vast US market. However, a tariff of 18 percent will remain on finished jewelry for now.
Industry leaders from major gems and jewelry hubs across the country, including Mumbai, stated that this agreement will strengthen the global competitiveness of Indian businesses, especially for the small and medium enterprises (SMEs) considered the backbone of this sector.
Rajesh Rokade, Chairman of the All India Gem and Jewellery Domestic Council (GJC), termed the agreement historic and thanked Prime Minister Narendra Modi and Union Commerce Minister Piyush Goyal.
GJC Vice Chairman Avinash Gupta described the decision as a “historic zero-tariff milestone.” He said the removal of tariffs on gems and diamonds would prove to be a game-changer, particularly for SMEs and family businesses that have been operating under the pressure of limited margins and high tariffs for years.
He added that although an 18 percent tariff remains on finished jewelry, this agreement lays the foundation for broader opportunities in the future and will create a multiplier effect in supporting industries such as logistics, design, and retail.
Industry experts say the US is the largest market for India’s gems and jewelry exports. The zero tariff on diamonds and gems will make Indian products more competitive, likely leading to an increase in orders and a boost in production. This is expected to not only increase exports but also create new employment opportunities for artisans and workers. Overall, this interim trade agreement is seen as a decisive turning point for the Indian gems and jewelry sector, which could strengthen India’s position in global markets in the coming years.
