Indian gem & jewellery industry, like the rest of the world, is trying to analyse the evolving global economic landscape due to the reciprocal tariff announcement by USA on countries worldwide. The Gem & Jewellery Export Promotion Council (GJEPC) though understands the U.S. administration’s intent to address trade and tariff imbalances through reciprocal tariffs, however urges the U.S. to uphold the spirit of the longstanding trade partnership between India and the United States, which has been built on mutual respect and shared economic interests.

The Trump administration’s announcement of a 27% reciprocal tariff on Indian gem and jewellery exports to the US would be a significant burden on Indian exporters and American consumers alike. While the tariff’s application to competing nations presents both challenges and opportunities, it is likely to significantly impact India’s diamond and jewellery sector—a cornerstone of its exports to the US. In the long term, we foresee a reshaping global supply chains. In short run, we anticipate challenges in sustaining India’s current export volume of USD 10 billion to the US market. We urge the Government of India to progress the Bilateral Trade Agreement between India and the US, as it would be crucial in navigating the tariff issues and securing long term interest of the sector.

Additionally, GJEPC is actively engaging with stakeholders to address these risks and advocate for balanced solutions that ensure continued access to the U.S. market.

India’s $32 billion gems and jewellery industry is gearing up for a sharp decline in exports as the imposition of hefty U.S. tariffs is expected to disrupt sales to its largest market, officials say. The United States recently imposed a 26% reciprocal tariff on India, marking a significant setback to the country’s export ambitions under President Donald Trump’s global trade policy.

“The tariff is higher than expected,” said Colin Shah, managing director of Kama Jewelry, one of India’s leading diamond jewellery manufacturers. “It is quite severe and will affect exports.”

India remains the world’s largest hub for diamond cutting and polishing, processing nine out of every ten diamonds globally. The United States accounts for nearly $10 billion—or 30.4%—of India’s annual gems and jewellery exports.

Despite its importance, the gems and jewellery sector, India’s third-largest export to the U.S. after engineering and electronics, is already struggling. The industry employs millions in India and has seen a recent downturn due to weak demand from China, resulting in a 14.5% drop in exports to $32.3 billion in the 2023-24 fiscal year.

However, industry leaders remain optimistic that a long-term bilateral trade deal with the U.S. could alleviate some of the negative impact. “We’re pretty hopeful that India could land a trade deal with the U.S. in the next few months. So, we just need to push through this tough phase for a little while longer,” said Shaunak Parikh, vice chairman of the Gem and Jewellery Export Promotion Council (GJEPC).

As part of its Centenary celebrations, Bhima Jewellery recently unveiled the Bhima Fairytale Wedding Exhibition, a distinguished wedding event that brought together the best of the wedding industry. Hosted in the Trivandrum region, the exhibition received an overwhelming response from couples, families, and wedding service providers, cementing its place as one of the leading wedding exhibitions in the jewellery industry. The event, which concluded on March 30th, 2025, was a major success, attracting over 7,500 visitors, surpassing all expectations.

The exhibition showcased more than 350 wedding sets, offering an extensive collection of jewellery styles from across India, and drew in a diverse crowd seeking the perfect wedding pieces. Visitors enjoyed exclusive discounts, turning the event into a shopping paradise for those planning their dream weddings.

In addition to jewellery, the exhibition offered a wide range of services for couples, including informative workshops and seminars on wedding planning, makeup, hairstyling, costume design, and more. These were met with enthusiastic participation from visitors eager to learn tips and trends for their big day.

Among the many highlights were interactive experiences such as a selfie station, consultations with experts, and contests and giveaways, ensuring there was something for everyone at the event. With its unique blend of shopping, learning, and fun, the Bhima Fairytale Wedding Exhibition has undoubtedly set a new standard in the wedding exhibition space.