US Tariff Shock: Indian Gem And Jewellery Sector, Faces Job Losses And Export Crisis
India’s gem and jewellery sector braces for a major hit after US President Donald Trump announced a 25% tariff on Indian imports, a sharp increase from the earlier 10%. The industry, a key contributor to India’s export economy, fears job losses and market disruptions. Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, said, “The handmade jewellery exports could be hit hard. These products may no longer be accepted or sold there.” When the US imposed the earlier 10% tariff, about 50,000 workers were affected. Rokde warns that with the new tariff, “more than one lakh people could be impacted this time.” The tariffs will come into effect on August 1. Despite the grim outlook, Rokde noted, “This might impact America more than it will impact India,” citing India’s ability to find alternate markets in the EU and Middle East.
The jump from a 10% to 25% tariff is a major blow to India’s gem and jewellery exports, a sector that supports hundreds of thousands of workers. Rajesh Rokde emphasized the scale of the problem: “Previously, when there was a 10 per cent tariff, around 50 thousand people were suspected to be unemployed.” He projects that “if the same pattern follows with the new tariff hike, more than one lakh people could be impacted this time.” This sudden increase risks increasing unemployment and destabilizing an industry already challenged by global market conditions.
Colin Shah, Managing Director of Kama Jewellery, highlighted the broader impact of the tariff hike: “With the US being one of the key export destinations, this will severely impact sectors like gems and jewellery that are heavily dependent on exports.” Shah also pointed out that “the industry has already been struggling due to prolonged geopolitical tensions between Russia-Ukraine and the Middle East for over two years.” The return of Trump and his tariff threats have intensified uncertainty, with Shah noting, “Going ahead, we expect trade activities with the US to remain muted.”
Industry stakeholders now pin their hopes on the upcoming sixth round of India-US Bilateral Trade Agreement talks scheduled for late August. These talks could potentially provide relief or a solution to ease the tariff impact. As Rokde shared, “Jewellery from India is exported across the world. In such cases, India had earlier found alternate markets like the European Union and the Middle East.” The industry remains cautious but optimistic that diplomatic dialogue will help reduce tensions and secure export opportunities.
(From ANI)
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