Editor’s Note
This article highlights the immediate economic anxiety in Jaipur’s historic jewelry sector following recent U.S. tariff announcements. The potential impact on a key local industry underscores how global trade policies can resonate deeply in regional economies.
A wave of deep concern has swept through Jaipur’s jewelry market following the implementation of a 50% tariff by US President Donald Trump on Wednesday. The lanes that once echoed with the clinking of jewelry are now silent. Gems and jewelry are the cornerstone of Jaipur’s economy alongside tourism. Jewelry is the city’s largest source of foreign exchange, but with the US raising tariffs, there is concern that this thriving industry may lose its luster.
From the famous jeweler’s market or the market of jewelry artisans, where traditional jewelers create the finest ornaments, from enamel-adorned Kundan Polki sets, to the narrow, winding lane of Gopal Ji Ka Rasta, where traders sell pearls, jewelry, colored gemstones, and precious stones, the entire area is submerged in worry about what lies ahead.
The family of Sudhir Kasliwal, owner of Gem Palace, has been the private jeweler to Jaipur’s royal family for generations. Jaipur’s famous Rajmata Gayatri Devi was their royal patron, and for years, Gem Palace has earned a reputation for its timeless craftsmanship and heritage jewelry.
From Oprah Winfrey to former US First Lady Jacqueline Kennedy Onassis, international celebrities have visited this studio of Gem Palace. But US tariffs can impact such traditional businesses.
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Sudhir Kasliwal, owner of Gem Palace, said that 70% of the foreign tourists visiting their store are American, and the tariff will definitely affect our sales in Jaipur as well.
He further stated that American tourists will not make purchases because they will have to pay heavy duties on jewelry bought in India when taking it home.
The total export of gems and jewelry from Rajasthan is approximately 1800 billion rupees. The US is the largest market for Jaipur’s traders. Jaipur exports ready-made jewelry and colored gemstones worth about 320 billion rupees to the US every year.
Alok Sonkhia, President of the Jaipur Jewelers Association and a leading exporter, said, “By this time, we usually start receiving Christmas orders, but not a single order is coming in.” In fact, some exporters have said their shipments have reached the US, but customers are not picking them up. The coming months will see a widespread impact on the jewelry business.
The cutting and polishing of colored gemstones is also a significant component of Jaipur’s export trade. Colored gemstones like emerald, tanzanite, rubellite, morganite, and aquamarine are some of the favorite stones cut, polished, and exported from Rajasthan and are used in ready-made jewelry.
