【Mumbai, Indi】India-US Trade Agreement to Bring Major Benefits to Diamond Industry

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Editor’s Note

This article highlights a key provision of the India-US trade agreement, which eliminates import duties on diamonds and gemstones. Industry experts anticipate this will bolster India’s vital cutting and polishing sector, though the full text details further implications for trade dynamics.

भारत-अमेरिका व्यापार समझौते से हीरे उद्योग को मिलेगा बड़ा लाभ
Impact of the India-US Trade Agreement

Mumbai, February 10: The trade agreement between India and the United States is expected to bring significant benefits to the diamond industry. Under this agreement, diamonds and gemstones will now attract zero percent duty under Section 3, which is a crucial step, according to Avinash Gupta, Vice President of the All India Gem and Jewellery Domestic Council (GJC).

Gupta explained that this agreement will help sustain India’s cutting and polishing industry, as previously 9 out of 10 diamonds were cut in India, but US tariffs had caused difficulties for many artisans in Surat.

“This trade agreement is very comprehensive and I believe it will greatly benefit ‘Make in India’. With skill transfer across various industries, India’s recent trade agreements, not only with the US but also with the European Union, will have a significant impact.”

Gupta further stated that when discussing zero percent duty in the gem and jewellery industry, it currently applies only to diamonds and gemstones.

“Jewellery itself is a very large segment that has not yet been brought under the zero percent duty ambit. I appeal to the government to include jewellery under Section 3 in future negotiations. If jewellery is brought under this framework, it will bring major benefits,” Gupta said.

As manufacturing hubs develop in India, positive effects are already becoming visible.

“Earlier, when electronics manufacturing started in India, our country was a net importer, but today it has become an exporter. This same pattern is now being seen in the automobile industry and now in the gem and jewellery sector as well.”

Currently, the government has set a very ambitious target – to make India a complete exporting nation before 2047 and establish it as a global production hub for jewellery.

“Prime Minister Narendra Modi’s vision, I believe, will be fulfilled by 2047.”
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⏰ Published on: February 10, 2026