(MENAFN- KNN India) New Delhi., Jul 17 (KNN) With the United States considering increased tariffs on Chinese-origin goods - including Indian jewellery items processed using Chinese raw materials - the Indian gems and jewellery industry is eyeing new export markets.

The Middle East, particularly the UAE, is emerging as a strong alternative, thanks to the India-UAE Comprehensive Economic Partnership Agreement (CEPA).

Surat, a major hub for diamond and gold jewellery manufacturing, is likely to be impacted if the US implements the proposed 50% tariff on such goods.

The concern stems from the fact that many Indian jewellers import gold, diamonds, and other raw materials from China.

Under US rules, goods that contain over 35% Chinese material fall under the category of“Chinese-origin,” regardless of where they are processed. This could significantly affect India's $9 billion jewellery exports to the US.

Industry leaders are now shifting their focus to the Middle East to reduce dependence on the US market. Under CEPA, Indian exporters enjoy zero-duty access to the UAE, making it a lucrative option.

Jewellery businesses in Gujarat are already expanding their market reach in Gulf countries and exploring new avenues in Saudi Arabia and Qatar.

Meanwhile, industry experts have urged the Indian government to push for clearer guidelines under CEPA and offer policy support to help exporters deal with evolving global trade challenges.

The Gems and Jewellery Export Promotion Council (GJEPC) is also advocating for more bilateral trade agreements to ensure long-term growth.

The industry believes that diversifying markets will help cushion the impact of changing US trade policies and ensure continued global competitiveness.

(KNN Bureau)

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