National News

Trump’s reciprocal tariffs spark job loss fears in GJ sector

Published

2 years ago

March 7, 2025

The U.S. government’s move to impose reciprocal tariffs has sent ripples of concern through India’s gem and jewellery sector, a vital component of the nation’s economy. Here’s a breakdown of the key issues and implications:

The Core Issue: Reciprocal Tariffs and Trade Imbalance

Unequal Tariff Structures: The heart of the issue lies in the perceived imbalance in tariff structures between the U.S. and India. India currently levies a 20% tariff on gold jewellery imported from the U.S., while the U.S. applies a significantly lower duty of 5.5-7% on Indian gold jewellery. Similarly, India imposes a 5% tariff on cut and polished diamonds, whereas the U.S. has historically maintained zero tariffs on these Indian exports. This discrepancy has prompted the U.S. to consider reciprocal tariffs, aiming to create a more level playing field.
Potential Impact on Exports: The U.S. is a critical market for Indian gem and jewellery exports. Any increase in U.S. tariffs would directly raise the cost of Indian products for American consumers, potentially reducing demand and negatively impacting export volumes.
Key Export Categories at Risk: The primary export categories facing potential disruptions include:
• Cut and polished diamonds: A major export segment, historically enjoying tariff-free access to the U.S. market.
• Studded gold jewellery: A significant contributor to export revenue.
• Plain gold jewellery: Another essential export commodity.
• Lab-grown diamonds: A growing sector within the Indian gem and jewellery industry.

Economic and Social Implications for India

• Impact on Export Revenue: A decline in gem and jewellery exports would directly affect India’s foreign exchange earnings.
• Employment Concerns: The industry is a significant employer, providing livelihoods to over two million people, with a substantial portion being women and individuals from economically disadvantaged backgrounds. Tariff-induced disruptions could lead to job losses and economic hardship for these vulnerable populations.
• Industry Vulnerability: While not the single largest export driver, the gem and jewellery sector holds a vital position in India’s economy. Its labor intensive nature, and the high value of its exports makes it very important.
• Trade Relations: The tariff issue has the potential to strain trade relations between India and the U.S., potentially impacting other areas of economic cooperation.

Factors to Consider

• Market Dynamics: The extent of the impact will depend on the magnitude of the tariff hikes and the ability of Indian exporters to absorb the increased costs or find alternative markets.
• Negotiations: The outcome will also depend on the results of ongoing or future trade negotiations between the two countries.
• Lab-grown Diamonds: The lab-grown diamond market is fairly new, and very dynamic. Any tariff changes could drastically alter the market share of Indian companies in the United States.
In essence, the potential imposition of reciprocal tariffs by the U.S. poses a significant challenge to India’s gem and jewellery industry, with potential ramifications for export revenue, employment, and overall economic stability.

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National News

Malabar Group Signs Letter Of Intent With The West Bengal Government To Strengthen CSR Partnerships and Advance Inclusive Development

Rs 20 Crore CSR Commitment For West Bengal In FY 2026–27 To Expand Education, Healthcare, Nutrition, Water Security and Artisan Welfare Initiatives.

Published

2 hours ago

October 1, 2026

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·Strengthens government-corporate collaboration to drive inclusive development across West Bengal

·Supports 11,873 children through 297 Micro Learning Centres across the state

·Provides nutritious meals daily to 1,200 beneficiaries and has completed 629 drinking water wells

·Expands support for healthcare, elderly care, and artisan communities across West Bengal

Malabar Group, a leading diversified business conglomerate and the parent company of Malabar Gold & Diamonds, has signed a Letter of Intent (LOI) with the Government of West Bengal to strengthen CSR partnerships and expand the impact of its social initiatives across the state. The LOI was exchanged with Finance Minister Dr. Swapan Dasgupta by Thahsil Ahammed, Regional Head (East India), Malabar Gold & Diamonds, along with Sajid N K, Manufacturing Head, Malabar Gold & Diamonds, and Shabeer P K, Senior Manager, CSR. The collaboration marks an important step towards enhancing government-corporate convergence and promoting inclusive and sustainable development through focused interventions addressing community needs.

The engagement is aligned with West Bengal Government’s efforts to establish a more coordinated and outcome-oriented framework for CSR partnerships. The state has also instituted an integrated CSR framework through the Finance Department, State CSR Council, West Bengal CSR Portal and CSR Projects Facilitation Unit to facilitate partnerships between the government, corporates, and philanthropic organisations, while aligning CSR investments with identified development priorities. As a part of its continued contribution towards the social development in the state, Malabar Group has earmarked a total CSR commitment of Rs 20 crore for FY 2026–27.

Malabar Group has been implementing a range of community-focused initiatives in West Bengal through the Malabar Charitable Trust (MCT) and its implementing partner, Daya Rehabilitation Trust (Thanal). These initiatives encompass education, nutrition, healthcare, water security, elderly care, housing, and artisan welfare, with a focus on creating sustainable impact among underprivileged communities.

Under its education initiatives, Malabar Group currently supports 297 Micro Learning Centres, benefiting 11,873 children from underserved communities across West Bengal. The Group has also provided scholarships to 500 girls to support their education. In addition, the Ujjwala Scholarship initiative supports 500 students from the Karigar community in West Bengal, contributing to greater access to education for children from artisan families.

Nutrition remains another important area of intervention. Malabar Group provides nutritious meals daily to 1,200 beneficiaries across the state. The initiative aims to ensure regular access to nutrition among vulnerable communities. Its outreach efforts include daily street medical services that reach around 60 beneficiaries, extending basic healthcare support to underserved sections of society.

Moreover, the Group has completed 629 drinking water wells against a target of 800, helping communities improve access to safe drinking water. Furthermore, the Group has expanded its social welfare initiatives to elderly care and housing. A Grandma Home for 60 elderly women has been proposed in West Bengal to provide accommodation, care, and support to elderly women in need. Through its Samman Awas housing initiative for artisans, Malabar Group has committed to provide 140 houses, including 80 in West Bengal, with the aim of improving living conditions for artisan communities.

Commenting on the initiative, MP Ahammed, Chairman of Malabar Group, said:

“At Malabar Group, CSR is an integral part of our culture, and we believe in creating meaningful and sustainable social impact. Our collaboration with the Government of West Bengal marks an important step in enhancing this approach and strengthening the alignment between corporate social responsibility and the development priorities of the state.

Through our continued engagement with communities, we remain committed to supporting initiatives that enhance access to education, healthcare, nutrition, livelihoods, and essential social infrastructure. We look forward to building on this partnership and contributing to a more inclusive and sustainable future for communities across West Bengal.”

The Letter of Intent further strengthens Malabar Group’s ongoing engagement with communities across West Bengal and provides an opportunity to deepen existing interventions while exploring areas for greater collaboration. West Bengal Government’s CSR framework is designed to connect corporate intent with development priorities at the state and district levels, and facilitate partnerships that can improve quality, alignment, and scalability of CSR interventions.

Malabar Gold & Diamonds has allocated Rs 200 crore towards CSR initiatives for FY 2026–27, with a focus on driving meaningful social needs.