India’s jewellery industry faces major blow as US raises tariff to 25% on imports
PTC Web Desk: The United States’ recent decision to hike import tariffs on Indian goods from 10% to 25% is likely to deliver a severe blow to India’s gem and jewellery sector, a key pillar of the nation’s export economy. Industry leaders have raised alarm over the potential job losses and economic disruption that could follow this move, which will take effect from August 1.
Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, expressed deep concern over the development. "Handmade jewellery exports are likely to suffer the most. These products may no longer be viable for the US market," he said during a conversation with ANI.
Rokde recalled the impact of a previous 10% tariff hike by the US, which reportedly rendered around 50,000 workers jobless. "If this 25% tariff leads to a similar trend, more than one lakh people could be affected. That would be a devastating outcome for the industry," he added.
Despite the grim outlook, Rokde pointed out that the long-term impact might be greater on the US than on India. “Indian jewellery is globally in demand. We have previously redirected exports to other regions like the European Union and the Middle East during trade disruptions,” he noted.
According to data from the Ministry of Commerce, the United States was India’s largest market for gems and jewellery in the last fiscal year, with exports valued at approximately USD 9.9 billion.
Nonetheless, hope remains within the industry as all eyes now turn to the sixth round of the India-US Bilateral Trade Agreement talks, scheduled for the end of August. Stakeholders are optimistic that discussions with American representatives during their India visit may bring some relief or a potential resolution.
- With inputs from agencies
