Statement By Mr. Kirit Bhansali, Chairman, GJEPC
“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.
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.
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%.
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)
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.
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 close consultations with the Government and awaits detailed notifications.”
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.”
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