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 US market. The move is expected to bolster the competitiveness of Indian diamonds and gemstones following a sharp decline in exports.
Under the 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 a historic step. 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 has welcomed the announcement of duty-free access for diamonds and coloured gemstones in the US under the interim trade agreement on Saturday. The industry says this is a turning point that will provide new strength to the sector.
Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC), said in a statement, “The past year has been very difficult for us, with exports of cut and polished diamonds to our largest market (the US) falling by over 60 percent.”
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 promote Make in India.
Bhansali explained that under this agreement, duties on jewellery have been reduced to 18 percent, providing immediate relief. He expressed hope that once a full agreement is reached, duties on diamonds and coloured 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 provide Indian exporters with unprecedented access to the US market.
Colin Shah, Managing Director of Kama Jewelry, said that despite being a global hub for diamond processing, India was severely impacted by trade tariffs.
