The Gem & Jewellery Export Promotion Council (GJEPC) has welcomed the recently concluded India–U.S. trade agreement, calling it a critical lifeline for India’s gem and jewellery industry, which had come under intense strain due to steep U.S. tariff hikes over the past year.
In a statement, Mr. Kirit Bhansali, Chairman, GJEPC, said, “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 expressed gratitude to the leadership and negotiating teams of both countries for securing the agreement. “GJEPC extends its deepest appreciation to the Hon’ble Prime Minister Narendra Modi, the Hon’ble President of the USA Mr Donald Trump, the Hon’ble Commerce & Industry Minister Piyush Goyal, and the entire government negotiating team of both countries for securing this deal, which will restore confidence across the gem and jewellery value chain.”
The United States continues to be India’s single largest export destination for gems and jewellery, accounting for 31% (US$ 9.23 billion) of total exports in FY 2024–25. However, trade flows were severely disrupted in 2025 after reciprocal U.S. tariffs were imposed.
According to GJEPC, duties on polished diamonds and coloured gemstones rose sharply from 0% to 10% in April, and further escalated to 50% by August, making exports commercially unviable. Jewellery tariffs jumped from 5–7% to 55–57%, severely impacting liquidity, margins, and working capital across the sector.
As a result, India’s gem and jewellery exports to the U.S. fell 44.42% between April and December 2025, declining from US$ 8,691.25 million to US$ 3,862.08 million. Key segments bore the brunt of this downturn:
- 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)
With the new India–U.S. Trade Deal, the reduction in tariffs is expected to significantly lower costs for U.S. importers and provide relief to Indian manufacturers. The move is seen as a key step toward restoring the competitiveness of Indian diamond jewellery in its largest export market, reviving demand, and stabilizing operations across the value chain.
GJEPC is also optimistic about potential zero-duty access for certain categories. “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.”
The council added that it remains engaged with the government for further clarity. “GJEPC continues close consultations with the Government and awaits detailed notifications.”
Summarising the industry’s outlook, Mr. Bhansali said the following about the new India–U.S. Trade Deal:
“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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