National News
GJEPC Leaders Urge Government Action Amidst 50% US Tariff Blow to Gem & Jewellery Exports
In a recent panel discussion on CNBC-TV18’s Commodity Champion, key voices from India’s gem and jewellery sector raised urgent concerns about the impact of the newly imposed 50% tariff on exports to the United States — the country’s largest export destination for the industry.
The panel featured Kirit Bhansali, Chairman of GJEPC; Devansh Shah, Partner at Venus Jewel; Praveenshankar Pandya, Director of Shankar Group of Companies; Akshay Shah, Director at Dharmanandan Diamonds Pvt. Ltd.; and Sabyasachi Ray, Executive Director of GJEPC. Together, they presented a sobering picture of the challenges ahead.
Between April and July 2025, exports to the U.S. had already dropped 32% year-on-year to USD 2.12 billion. With the new 50% tariff taking effect from August 27, the sector now faces further contraction — affecting key categories including polished diamonds, fine jewellery, and coloured gemstones.
GJEPC strongly urged the Indian Government to intervene with immediate relief measures. These include:
- Targeted Duty Drawback or reimbursement schemes
- Working capital relief for exporters
- Permission for reverse job work and limited DTA (Domestic Tariff Area) sales in SEZs
Such support, leaders say, is critical to protect livelihoods, sustain global competitiveness, and prevent a long-term erosion of India’s market share in the global gem and jewellery industry.
The session saw a power packed panel of experts that comprisedSurendra Mehta, National Secretary- IBJA,Ranjith Singh,Head of Business Development, IIBX, Shweta Dhanak, Director – Vijay Exports,S Thirupathi Rajan, MD Goldsmith Academy, Shivanshu Mehta, SVP & Head Bullion-MCX.The session was moderated by Chirag Seth, Principal Consultant, Metals Focus.
Some salient points made by the panelists:
- Gold prices are not linked to consumer demand. They are linked to central bank buying and ETFs
- Till the banking system doesn’t collapse, gold price will continue to rise
- Jewellers were advised to use a mix of futures and options for risk mitigation
- Given the current situation manufacturers selling on credit or unfavorable deals could be fatal flaw for business.
- Precious metals forecast: Surendra Mehta said he sees gold in 2026 in $4900-5100 range and silver in $90-105.Looking further he said by 2030-2035 gold could touch $18000- 20000 and silver could reach $500. Chirag Seth predicted silver touching $105 this year and gold moving in the $ 5200- $ 5500.
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