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The Indian gems and jewellery industry welcomes the strategic US India trade agreement slashing reciprocal tariffs from 50% to 18%. This decisive move follows a challenging period where exports to the US plummeted by 44.42% (to $3.86 billion) between April and December 2025.As the US accounts for 30% of industry sales, the previous 50% duty significantly hampered India’s global competitiveness.

In the first nine months of this fiscal, exports to the US have already fallen 44 per cent to $3.86 billion against $6.95 billion logged in the same period last year.Overall gem and jewellery exports between April and December was flat y-on-y at $20.75 billion.

Nearly 32 per cent of the sector’s total exports are directed to the US, which makes the sector vulnerable to trade disruptions. However, with the tariff rate now moderating to 18 per cent, Indian textile exports are once again looking competitive compared with Asian peers, said a leading exporter.

Experts had noted that 50 percent tariffs had significantly moderated Indian exports to US, with second-order hits on employment-heavy sectors like textiles and jewelry. Further, the move exacerbated FPI selling, which may see a reversal.

Kirit Bhansali, Chairman, GJEPC

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.

Colin Shah, MD, Kama Jewelry

The news of reciprocal tariffs being slashed to 18% comes as a great relief to the Indian gems & jewellery sector and is well revered. The USA has been a prominent consumer market of Indian Gems & Jewellery and the sentiment had taken a hit due to the tariff implications. This partial relaxation will reinstate confidence in Indian jewellery manufacturers and exporters as well the buyers in the American market.

We are thankful to the Indian government for striking a balanced negotiation and look forward to further relaxation in tariff, in the best interest of India’s economic growth.

Rajesh Rokde,Chairman, GJC

The reduction in US tariffs marks a pivotal moment for India’s gems and jewellery sector. It is not merely a financial adjustment, but a recognition of the unmatched artistry and craftsmanship that our industry brings to the world. By lowering barriers in one of the largest consumer markets, our exporters will gain a stronger foothold, while our artisans will see their creations reach new audiences. This strengthens our global competitiveness and instills confidence across the supply chain, from manufacturers to retailers.

Avinash Gupta,Vice Chairman, GJC

The slash in US tariffs is a landmark achievement that will directly benefit small and medium enterprises, which form the backbone of India’s jewellery industry. While larger exporters have long had the scale to navigate international markets, SMEs often struggle with tariff barriers that limit their competitiveness.

This reduction opens doors for thousands of smaller businesses to expand into the US market, translating into higher exports, stronger revenues, and most importantly, job creation at the grassroots level.

Gems and jewellery stocks were in the limelight on Tuesday after India- US  trade deal was announced. Shares of Goldiam International skyrocketed 20 per cent, Vaibhav Global zoomed 20 per cent, Kalyan Jewellers India jumped 7.61 per cent and Senco Gold edged higher by 7.41 per cent on the BSE.The stock of Shringar House of Mangalsutra jumped 6.61 per cent, P N Gadgil Jewellers advanced 6.25 per cent, PC Jeweller surged 5 per cent and Titan climbed 4.68 per cent.