Indian Jewellery Sector Faces Crisis As US Imposes 25% Tariff On Exports

(MENAFN- KNN India) New Delhi, Jul 31 (KNN) India's jewellery sector is facing a major crisis after former US President Donald Trump announced a 25% tariff on Indian jewellery exports.

The move has triggered alarm across the industry, with fears that over one lakh jobs could be at risk, particularly in small-scale and labour-intensive units.

According to the Gem and Jewellery Export Promotion Council (GJEPC), the US is one of the biggest buyers of Indian jewellery, accounting for nearly 30% of the total exports.

Industry leaders warn that the new tariff could drastically reduce India's competitiveness, especially when compared to countries like China, Thailand, and Mexico, which either face lower tariffs or enjoy preferential trade agreements with the US.

The council has urged the Indian government to intervene diplomatically and seek tariff relief or negotiate trade terms with the US. They have also called for incentives to help the domestic industry absorb the blow.

The Indian jewellery industry, which employs over five million people, is already dealing with rising costs and global demand fluctuations.

This new tariff is expected to further reduce export volumes, hurting both large exporters and smaller artisans who rely heavily on US orders.

Experts believe that if the situation continues without any intervention, India could lose a significant share of the global jewellery market.

Exporters are also considering shifting operations to countries with more favourable trade agreements to maintain access to the US market.

The industry is now looking to the Indian government for swift action, including policy support, trade discussions, and alternative market access strategies to protect jobs and sustain export levels.

(KNN Bureau)

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