India is seeking to develop a sustainable jewellery export strategy in the face of new tariffs imposed by the US.
This was the focus of a meeting with the country's Commerce and Industry Minister Piyush Goyal, which was attended by the Gem and Jewellery Export Promotion Council (GJEPC) and industry associations’ representatives.
The meeting discussed the implications of the 27% duties imposed on this South Asian country, with the US accounting for more than a third of India's total gem and jewellery exports.
Delhi is currently negotiating trade agreements with Washington, and the Indian side is cautiously optimistic about this.
At the same time, the Indian government is negotiating free trade with the UK, the EU, New Zealand and several other countries in order to gain full access to new markets. The GJEPC urged the Indian government to recognize the gems and jewellery industry as one of the worst-hit sectors in the first phase of tariff talks, given its heavy reliance on the US market.
The council noted the “growing financial stress and high costs faced by industry units due to orders getting unserviceable due to tariffs.” The GJEPC sought special short-term relief measures by banks, similar to the concessions during the Covid pandemic.
The GJEPC also sought simplified financing schemes and support for exploring new markets to reduce over-dependence on the US. The minister assured the industry of assistance in easing operational challenges and helping promote Indian jewellery products in alternative markets.
On April 2, US President Donald Trump imposed blanket tariffs on around 60 countries exporting to the US. Additional tariffs were to be imposed on April 9. For India, they will amount to 26%, but at the last moment their entry into force was postponed by three months – until July 9.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
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