11-08-2025
- Business
- Fashion Value Chain
GJEPC Seeks Relief as US Tariffs Threaten Jewellery Exports
The US decision to impose a 50% tariff on all Indian goods has raised serious concerns for the Indian gem and jewellery industry. As the US accounts for over $10 billion in exports—nearly 30% of the sector's global trade—the move could disrupt supply chains, halt exports, and impact thousands of livelihoods.
The dependency on the US market is significant: 85% of exports from SEEPZ SEZ (employing 50,000 people) and half of India's cut and polished diamonds are US-bound. Competing hubs like Turkey, Vietnam, and Thailand face much lower tariffs, putting India at a disadvantage and raising the risk of trade diversion via low-tariff countries.
Despite the challenges, domestic demand remains strong. The success of IIJS Premiere 2025, with projected business of ₹70,000 crore–₹1 lakh crore, and the domestic market's expected growth from $85 billion to $130 billion within two years offer some cushioning. GJEPC is also expanding into new markets, including the upcoming Saudi Arabia Jewellery Exhibition (SAJEX).
GJEPC Chairman Mr. Kirit Bhansali urges immediate government intervention through measures such as:
Duty Drawback Scheme to reimburse 25–50% of new US tariffs for August–December 2025 exports.
Financial Support for Market Diversification , including MAI funding for SAJEX and a planned India Jewellery Exposition Centre in Saudi Arabia.
Interest Deferment on working capital loans for six months.
Reverse Job Work & DTA Sales permissions for SEZ units to maintain operations and retain 1.25 lakh workers.
Pre-Shipment Finance Relief with extended loan due dates.
Interest Equalisation Scheme reinstatement for competitiveness, especially for MSMEs.
Relief/Liquidity Packages similar to Covid-era measures.
Stable Credit Ratings for the sector during the slowdown.
Mr. Bhansali affirms the industry's solidarity with the Government of India, emphasising its commitment to protecting trade integrity and national economic interests during this crisis.
