File photo | Courtesy: GJEPC

The Gem & Jewellery Export Promotion Council (GJEPC) said the newly announced trade understanding between India and the United States could provide significant relief to exporters after months of tariff-related disruption in one of the industry’s most critical markets.

According to the Council, the U.S. accounted for 31 per cent of India’s gem and jewellery exports in FY 2024–25, valued at approximately US$ 9.23 billion.

Trade flows came under pressure in 2025 following the implementation of reciprocal tariffs by the U.S. Duties on polished diamonds and coloured gemstones increased from zero to 10 per cent in April and later rose to 50 per cent by August. Tariffs on jewellery moved from around 5 to 7 per cent to levels exceeding 55 per cent.

GJEPC stated that the higher duties affected liquidity, working capital cycles, and pricing competitiveness, contributing to a sharp fall in shipments. Between April and December 2025, India’s gem and jewellery exports to the U.S. declined by 44.42 per cent, from US$ 8,691.25 million to US$ 3,862.08 million.

Key categories recorded notable contractions:

• Cut and polished diamonds fell by 60.11 per cent
• Studded gold jewellery declined by 24.54 per cent
• Plain gold jewellery dropped by 28.89 per cent India

Commenting on the development, Kirit Bhansali, Chairman of GJEPC, said the agreement is expected to lower costs for American importers and help improve the competitiveness of Indian suppliers. He added that the industry anticipates a revival in demand and greater stability in manufacturing activity.

The Council also expressed optimism that loose diamonds and coloured gemstones could qualify for zero duty access under provisions referenced in the U.S. reciprocal tariff framework, which may further support export recovery.

GJEPC said it remains in consultation with the government and is awaiting detailed notifications on implementation.