Editor’s Note
The recently announced India-US trade agreement is poised to significantly reshape the gems and jewellery sector. As industry sources indicate, the elimination of tariffs is expected to unlock substantial growth by providing Indian exporters unprecedented access to the vast American market.
The India-US trade deal is being viewed as a major change for the gems and jewellery industry, with expectations that trade will multiply in the coming years. This information was provided by industry sources on Monday. Regarding the impact of this deal on the gems and jewellery sector, Krishna Bihari Goyal, CMD of Dwarka Gems Limited, told news agency IANS that the implementation of zero percent tariffs will open the doors of a large market like the US for Indian exporters.
This will enable India to provide tough competition to countries like China and Thailand in the American market. Goyal further said that business had declined significantly due to the 50 percent US tariff, but now there is a possibility of it increasing manifold. He explained that in the US, all traders, from large to small, are active, and MSMEs had suffered the most from the increased tariffs. Therefore, now MSMEs are expected to benefit the most from the tariff reduction. Goyal also said that the gems and jewellery sector is among the top foreign exchange-earning sectors for the country.
This will not only benefit the gems and jewellery industry but is also expected to strengthen the country’s overall economy. Avinash Gupta, Vice Chairman of the All India Gem and Jewellery Domestic Council, said that under this trade deal, tariffs on the export of Indian gems and jewellery to the US will become zero. This will greatly benefit the country’s cutting and polishing industry. He said that the losses incurred due to tariffs in the recent past could be compensated in the next two years with much greater gains.
Earlier, in a conversation with IANS, Dinesh Lakhani of Kiran Gems Private Limited had said that this agreement would benefit the economies of both countries and revive exports affected by high tariffs. Regarding the impact of this agreement on the sector, he informed that more than 50 percent of India’s gems and jewellery exports go to the US, and this was significantly affected in the past year due to US tariffs. He said that now the US tariff on Indian gems and jewellery has become zero. After this agreement, a large market has become available for Indian products in the US, and now American jewellers and chain stores will be able to purchase jewellery from India in greater quantities than before.
