Editor’s Note
**Editor’s Note:** The diamond and jewelry industry has received a significant boost following a Supreme Court ruling that eliminates heavy taxes on diamond jewelry and ornaments. Industry leaders, including IBJA Gujarat President Naines Pachchigar, have hailed the decision as a game-changer, predicting it will reduce costs and stimulate growth in the sector.
Naines Pachchigar, Gujarat President of the India Bullion and Jewellers Association (IBJA), welcomed the decision in an interview with IANS. He noted that while the tax on diamonds was low, ‘diamond jewelry’ and other ornaments were subject to a heavy tax of around 18%. Pachchigar said:
Rajesh Gandhi, Senior Vice President of the Gujarat Chamber of Commerce (GCCI), described the change as very positive. He stated that if taxes are reduced, Indian goods will become more competitive in the US compared to those from other countries. The biggest beneficiaries will be the textile, manufacturing, and trading sectors. As exports increase, companies will need to ramp up production, creating new job opportunities for young people.
According to the US Chamber of Commerce, the decision also clears the way for refunds of additional taxes collected on goods from India and Brazil. Approximately 200,000 small businesses in the US may be eligible for these refunds. When US traders receive their money back, they will be encouraged to order more goods from India.
President Trump had used the International Emergency Economic Powers Act (IEEPA) to impose heavy taxes on goods from countries like India and Brazil. However, six judges of the US Supreme Court deemed this unlawful, ruling that the President does not have the legal authority to unilaterally impose such taxes.
This decision brings a new ray of hope for Indian exporters, but it remains to be seen what legal steps the Trump administration will take in response. For now, the Indian diamond and textile industries are celebrating this victory.
