US Tariffs Jeopardize Indian Gold Jewellery Market

The US plans to impose an additional 25% tariff on Indian gold jewellery exports, igniting concern amongst industry leaders. The compounded 50% tariff endangers artisan livelihoods and threatens economic stability. Urgent government intervention is needed to protect India's jewelry sector and its global market leadership.

In a development that has sent ripples of concern through India's gold jewellery sector, the United States is poised to enforce an additional 25% tariff on Indian gold jewellery exports starting August 27. This levy will add to the existing 25% tariff, placing immense pressure on the industry.

Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), sounded the alarm over the impending economic fallout. "A cumulative 50% tariff poses a compounded blow to the sector," he remarked. This increased tariff not only undermines Indian exports' competitiveness in the U.S. market but also risks the livelihoods of countless artisans who are crucial to the industry.

The potential ramifications of the increased tariffs could destabilize local economies and erode cultural heritage that thrives on the skills of craftsmen. The GJC's Vice Chairman, Avinash Gupta, underscored the broader economic impact, including the pressure on the Indian Rupee. The tariffs cast a shadow on the industry, as gold becomes costlier and demand within India declines amid a challenging tariff environment. With India's gems and jewellery exports at 22 billion USD for FY 2023-24 and aiming for 100 billion USD by 2027, the situation demands urgent intervention to maintain India's standing as a leading jewellery exporter.

(With inputs from agencies.)