Editor’s Note
This interim trade agreement marks a significant development for India’s gem and jewellery sector, offering crucial duty-free access to the U.S. market and a potential recovery path after a sharp export decline.
Under an interim trade agreement between India and the United States, Indian diamonds and gemstones will receive duty-free access to the US market, a move hailed by the industry as historic. This decision marks a crucial turning point for the gem and jewellery sector, whose exports to the US fell by over 60% last year, and will enhance the global competitiveness of Indian products.
The Indian gem and jewellery industry welcomed Saturday’s announcement of duty-free access for diamonds and colored gemstones to the US under the interim trade agreement. The industry says this is a turning point that will bring new strength to the sector. Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), said in a statement:
He added:
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 colored 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 Rokde, Chairman of the All India Gem & Jewellery Domestic Council (GJC), said that zero duties will give Indian exporters unprecedented access to the US market. He said:
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. He said:
