【India】India-US Trade Deal: GJEPC Elated Over Zero Duty on Diamonds and Gemstones

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Editor’s Note

This article highlights a significant development for India’s gem and jewellery sector. The U.S. decision to grant zero-duty access under an interim trade agreement is seen as a crucial step to revive exports and competitiveness after a challenging period.

Export Decline and GJEPC’s Efforts

The announcement of zero duty on Indian diamonds and gemstones in the United States is expected to boost exports and restore a competitive edge.

“The Indian gem and jewellery industry is extremely enthused by the announcement of providing access to diamonds and coloured gemstones at zero duty in the USA under the framework of the interim agreement, especially after a difficult year when our exports of cut and polished diamonds to our largest market, the USA, fell by over 60% from $3.64 billion to $1.45 billion.”

This decline occurred primarily due to reduced competitiveness caused by tariffs. The GJEPC raised this threat in a timely manner. Continuous efforts were made with the Indian government and global industry organizations, including the World Diamond Council, to be included in Annexure III.

Duty Reduction and Future Hopes
“Under this framework, the duty on jewellery has been reduced to 18%, which will provide immediate relief. We hope that upon completion of the agreement, diamonds and coloured gemstones will fully benefit from zero duty, which will re-energize exports and restore competitiveness.”
Other Key Issues Presented to the Government

The Council has also presented the issue of including lab-grown diamonds and synthetic gemstones in the US tariff-exempt Annexure III list to the Indian government.

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⏰ Published on: February 10, 2026