Editor’s Note
**Editor’s Note:** This report examines the mounting pressure on Indian fashion jewellery manufacturers as cheap Chinese imports, allegedly aided by under-invoicing and misclassification, double their market share in five years. Despite higher customs duties, local firms face production cuts and job losses.
Jewellery
2 min read
Surging Chinese imports hit local jewellery firms
Indian fashion jewellery manufacturers are struggling against a surge of cheap Chinese imports, which have doubled their market share in five years. Importers are allegedly under-invoicing and misclassifying goods to bypass anti-dumping duties, making Chinese jewellery significantly cheaper. This situation is severely impacting local businesses in major manufacturing hubs, leading to production cuts and job losses, despite increased customs duties.
Domestic fashion jewellery manufacturers are facing an onslaught of cheap Chinese imports which has surged by 25% year-on-year, with importers under-invoicing shipments and wrong declaration of goods to avoid anti-dumping duties, making them almost 50% cheaper than locally produced ones, industry executives said. These imports are not coming under the 7117 HSN Code for fashion jewellery thus bypassing India’s duty of ₹600 per kg. HSN code is a uniform code that classifies over 5,000 products and is accepted worldwide.
This rampant import is severely impacting the Indian fashion jewellery manufacturing business, with many units reducing their production and workforce.
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In FY20, Chinese fashion jewellery controlled 25% of the Indian market, which has doubled to 50% in FY25, Mehta said.
The size of the Indian fashion jewellery market is about ₹40,000 crore as compared to ₹30,000 crore in FY20.
The local manufacturers in Mumbai, the biggest hub of fashion jewellery manufacturing and trading, are reeling under severe loss of business. Other centres like Rajkot in Gujarat, Singur in West Bengal and Machilipatnam in Andhra Pradesh are facing a similar crisis, industry executives said.
India had initially imposed custom duty at the rate of ₹400 per kg or 20% of the value of the goods, whichever is higher, in 2022. Two years later, it was raised to ₹600 per kg or 25% of the total value of the goods, whichever is higher.
By Sutanuka Ghosal
Published On Aug 23, 2025 at 09:05 AM IST
See more on:
Chinese imports, Indian fashion jewellery, anti-dumping duties, HSN Code, jewellery manufacturers
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