The Indian Gem and Jewellery Industry's Reaction to the India-US Trade Deal
The Indian gem and jewellery sector has expressed enthusiasm over the recent India-US interim trade deal, which grants zero-duty access for diamonds and colored gemstones to the United States. This development comes as a significant relief after a challenging year for exporters due to increased US tariffs.
In the past year, the Indian diamond industry faced a substantial decline in exports to the US, the largest market, with a 60% drop from USD 3.64 billion to USD 1.45 billion. The hike in tariffs posed a major obstacle for exporters.
Kirit Bhansali, chairman of the Gems and Jewellery Export Promotion Council, stated, 'We are pleased with the interim zero-duty access for diamonds and colored gemstones to the US.'
The India-US trade deal's interim framework, announced on Saturday, includes a reduction in duties on various goods. Tariffs on generic drugs, aircraft parts, gems, and diamonds will be lowered to zero, fostering increased competition among exporters and bolstering India's 'Make in India' initiative. This surge in exports is also expected to boost employment and market confidence.
As an immediate measure, duties have been slashed to 18%, providing much-needed relief to exporters. The gems and jewellery industry is optimistic that its goods will become duty-free by March, when the agreement is finalized. The Council has urged the government to include lab-grown diamonds and synthetic gemstones in the exemption list, further expanding the industry's benefits.
This development marks a positive step for the Indian gem and jewellery industry, offering a glimmer of hope amidst the challenges posed by the global trade landscape.
