“The Gem & Jewellery Export Promotion Council (GJEPC) has hailed the landmark India-U.S. trade agreement as a “vital relief measure for India’s gem and jewellery sector”, which faced severe pressure from escalating U.S. tariffs.
Short Quote by Kirit Bhansali, Chairman, GJEPC.
“The US-India Trade deal offers vital relief to India’s gem and jewellery sector amid U.S. tariff pressures. The U.S. accounts for 31% (US$ 9.23 billion) of FY 2024–25 exports—India’s largest market. Tariff cuts lower costs for U.S. importers, provides immense relief to diamond jewellery manufacturers ,boost competitiveness of Indian diamond jewellery, revive demand, and stabilize operations. GJEPC is optimistic that based on India signing the trade deal loose diamonds and coloured gemstones from India will get the benefit of zero duty imports in USA vide Annexure 3 of the U.S. reciprocal tariff list, providing much-needed support for diamond exports. This will enhance trade flows, rebuild confidence, and deliver a strong sector-wide boost. GJEPC continues consultations with the Government, awaiting detailed notifications.” said Kirit Bhansali, Chairman, GJEPC.
GJEPC Welcomes the Trade Deal
GJEPC extends its deepest appreciation to the Hon’ble Prime Minister Narendra Modi, the Hon’ble President of USA Mr Donald Trump, the Hon’ble Commerce & Industry Minister Piyush Goyal, and the entire government negotiating team of both the countries for securing this deal, which will restore confidence across the gem and jewellery value chain.
The U.S. remains India’s largest gem and jewellery export market, accounting for 31% (US$ 9.23 billion) of total exports in FY 2024–25.
Impact of Reciprocal U.S. Tariffs in 2025
In 2025, reciprocal U.S. tariffs disrupted trade flows to USA sharply. Duties on polished diamonds and coloured gemstones surged from 0% to 10% in April, then to 50% by August—unviable for these raw materials, which strained working capital, liquidity, and margins. Jewellery duties jumped from 5–7% to 55–57%.
Sharp Decline in Exports to the U.S.
This led to a 44.42% plunge in India’s gem and jewellery exports to the U.S. from April–December 2025 (US$ 8,691.25 million to US$ 3,862.08 million), with key categories hit hard:
- Cut & Polished Diamonds: -60.11% (US$ 3,636.36 million → US$ 1,450.38 million)
- Studded Gold Jewellery: -24.54% (US$ 2,113.46 million → US$ 1,594.83 million)
- Plain Gold Jewellery: -28.89% (US$ 258.53 million → US$ 183.84 million)
Relief Through Tariff Reduction
The tariff cut lowers costs for US importers, provides immense relief to diamond jewellery manufacturers enhancing the competitiveness of Indian diamond jewellery in the largest export market. This is poised to revive demand and stabilize operations.
Outlook on Zero Duty Benefits
GJEPC is optimistic that based on India signing the trade deal loose diamonds and coloured gemstones from India will get the benefit of zero duty imports in USA vide Annexure 3 of the U.S. reciprocal tariff list, providing much-needed support for diamond exports. This will enhance trade flows, rebuild confidence, and deliver a strong sector-wide boost.
Ongoing Engagement with Government
GJEPC continues close consultations with the Government and awaits detailed notifications.
About The Gem and Jewellery Export Promotion Council (GJEPC)
The Gem & Jewellery Export Promotion Council (GJEPC), set up by the Ministry of Commerce, Government of India (GoI) in 1966, is one of several Export Promotion Councils (EPCs) launched by the Indian Government, to boost the country’s export thrust, when India’s post-Independence economy began making forays in the international markets. Since 1998, the GJEPC has been granted autonomous status. The GJEPC is the apex body of the gems & jewellery industry and today represents 10700+ members in the sector. With headquarters in Mumbai, GJEPC has Regional Offices in New Delhi, Kolkata, Chennai, Surat and Jaipur, all of which are major centres for the industry. It thus has a wide reach and is able to have a closer interaction with members to serve them in a direct and more meaningful manner. Over the past decades, GJEPC has emerged as one of the most active EPCs and has continuously strived to both expand its reach and depth in its promotional activities as well as widen and increase services to its members.
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