‘India’s jewellery exports to U.S. may halve unless bilateral trade pact takes shape’

India's gem and jewellery exports to the U.S. face halving without a bilateral trade agreement, risking thousands of jobs.

India’s Gem & Jewellery exports to the United States (U.S.) could halve from what they are today unless it enters into a bilateral trade agreement (BTA) with the U.S. that has imposed steep reciprocal tariffs, industry officials said citing historical data, underscoring this risk.

In 2007 when the U.S. withdrew India’s Generalized System of Preferences (GSP) benefits, gold jewellery exports plummeted 50% from $2.21 billion to $1.01 billion within a year, recovering only after 15 years, according to a note reviewed by The Hindu.

In a note on the likely impact, Adil Kotwal, President, SEEPZ Gems & Jewellery Manufacturers’ Association (SGJMA) stated, “The U.S.’s proposed reciprocal tariff policy poses a serious threat to SEEPZ’s jewellery export sector, which accounts for 85% of India’s diamond-studded jewellery exports to the US.” 

“This industry is highly labour-intensive, directly employing 50,000 workers and supporting over 1 lakh more. A sudden tariff hike could severely impact exports, putting thousands of livelihoods at risk,” he cautioned. 

“We urge the Indian government to negotiate for a fair duty structure or consider lowering India’s import duty on U.S. jewellery to a more reciprocal level,” he stated.

India’s exports to the U.S. include a diverse range of products. These include cut and polished diamonds ($5.6 billion), studded gold jewellery ($2.55 billion), plain gold jewellery ($267 million), lab-grown diamonds ($831 million), silver jewellery ($320 million). 

However, gold jewellery and diamonds—key drivers of India’s exports—stand to suffer the most, according to Mr. Kotwal.