India’s Gem and Jewellery Export Promotion Council (GJEPC) has raised concerns over the United States’ decision to impose a 50% tariff on all Indian goods, warning that the measure could disrupt India’s gem and jewellery exports.
The US accounts for over $10 billion of exports from India’s gem and jewellery sector, representing around 30% of total global trade.
According to GJEPC, 85% of exports from the Santacruz Electronics Export Processing Zone (SEEPZ) Special Economic Zone, which employs around 50,000 people, are directed to the US. For cut and polished diamonds, half of India’s exports are US-bound.
GJEPC Chairman Vipul Shah said that such a tariff “may significantly disrupt operations across the value chain, affecting businesses from small workshops to large manufacturers.”
Competitive Disadvantage
Shah highlighted that competing manufacturing hubs including Turkey, Vietnam and Thailand face tariffs of 15%, 20% and 19% respectively in the US market. He said this disparity could reduce India’s share of the US jewellery import market.
GJEPC also noted that the higher tariffs could lead to trade being rerouted through countries with lower tariffs, such as Mexico, Canada, Turkey, UAE or Oman, which could affect transparency in the trade.
Domestic Market Growth and New Export Strategies
Despite the potential impact on exports, the Council pointed to domestic demand, noting that the recent IIJS Premiere 2025 exhibition generated projected business of between ₹70,000 crore and ₹1 lakh crore. India’s domestic jewellery market, currently valued at $85 billion, is forecast to reach $130 billion within two years.
Shah said that domestic growth “may help offset some of the potential impact on the diamond sector.” He added that the industry is seeking to diversify export markets, with the upcoming Saudi Arabia Jewellery Exhibition (SAJEX) among initiatives to expand into emerging regions.
Call for Government Support
GJEPC is urging the Indian Government to provide immediate relief through policy reforms and support measures.
Shah stated: “In these testing times, we remain committed to protecting the integrity of our trade and supporting the nation’s economic interests.”
