India-U.S. Trade Agreement Boosts Gem and Jewellery Exports

A New Era of Prosperity: India-U.S. Trade Alliance for Gems and Jewellery

Recognizing the Efforts Behind the Agreement

The Gem & Jewellery Export Promotion Council (GJEPC) of India has extended its gratitude to the leadership of both nations for their pivotal roles in securing this trade agreement. Indian Prime Minister Narendra Modi and U.S. President Donald Trump, along with their respective negotiating teams, are credited with reaching this landmark deal. Their collaborative efforts are poised to re-establish confidence throughout the entire gem and jewellery supply chain.

Addressing the Impact of Previous Tariffs on the Industry

Historically, the U.S. has been India's primary market for gem and jewellery exports, constituting a substantial portion of the total trade. However, the introduction of reciprocal U.S. tariffs in 2025 severely disrupted trade dynamics. Duties on polished diamonds and colored gemstones escalated significantly, making exports unfeasible due to increased working capital demands and diminished margins. Similarly, duties on various types of jewellery saw considerable increases, leading to a sharp decline in export figures during that period. Key categories such as cut and polished diamonds, studded gold jewellery, and plain gold jewellery experienced substantial setbacks.

The Transformative Potential of Tariff Reductions

The new trade agreement brings a welcome reduction in tariffs, which is expected to considerably lower costs for U.S. importers. This crucial change will provide immense relief to diamond jewellery manufacturers in India, significantly enhancing their competitive edge in the largest export market. The GJEPC anticipates that this will stimulate demand and stabilize industry operations, ushering in a period of recovery and growth.

Zero-Duty Access for Indian Exports

A key outcome of this agreement is the anticipated zero-duty access for loose diamonds and colored gemstones from India into the U.S. market, as outlined in Annexure 3 of the U.S. reciprocal tariff list. This provision is seen as a vital support mechanism for diamond exports, which have faced considerable challenges. The GJEPC believes this move will bolster trade volumes, rebuild trust among stakeholders, and provide a robust impetus to the entire sector.

Looking Ahead: Awaiting Official Notifications

The GJEPC remains in close communication with the Indian government and is eagerly awaiting the detailed official notifications regarding the implementation of the trade agreement. These notifications will provide the necessary clarity and framework for the industry to fully leverage the benefits of this landmark deal, ensuring a smooth transition and optimized trade operations.