Indias 32 Billion doller Gems and Jewellery Industry Faces Crisis Amid US Tariffs

India’s $32 billion gems and jewellery industry is bracing for a sharp decline in exports following the announcement of substantial U.S. tariffs, according to a report by Reuters. Experts believe these new tariffs will pose a major setback for India, which has long been the global leader in diamond cutting and jewellery manufacturing.

The United States is the largest market for Indian gems and jewellery, accounting for nearly 30.4% of the country’s annual exports in this sector—an estimated $10 billion. With the new tariffs in place, Indian jewellery manufacturers and exporters are facing an uphill battle to maintain their foothold in the highly competitive international market.

Industry leaders have expressed deep concern over the severity of the tariffs. "The tariff is higher than expected," said Colin Shah, managing director of Kama Jewelry, one of India’s top diamond jewellery manufacturers. "It is quite severe and will affect exports," he added.

The impact of these tariffs is expected to ripple across the entire supply chain, affecting not just exporters but also artisans, traders, and small businesses that form the backbone of India’s jewellery industry. Given that India’s jewellery sector employs millions, the slowdown in exports could lead to significant job losses and economic disruption.

The Indian government is expected to engage in diplomatic talks with U.S. officials to negotiate possible relief measures or exemptions. Meanwhile, industry stakeholders are exploring alternative markets, such as the Middle East and Europe, to compensate for the anticipated loss in U.S. exports.

As global trade tensions rise, India’s gems and jewellery industry faces one of its toughest challenges in recent years. How businesses adapt to these changes and whether policymakers can find a solution to mitigate the impact will determine the future of this vital sector.