Tariff Troubles: India's Gem Industry Challenges

India's $32 billion gems and jewellery industry faces export challenges as the U.S. imposes a 26% tariff. This affects India's biggest market, where it sends nearly $10 billion in goods annually. Industry experts hope a new bilateral trade deal could ease the impact.

India's $32 billion gems and jewellery industry is on the brink of a substantial drop in exports, thanks to the imposition of hefty tariffs by the United States, which will hinder sales to its largest market.

The U.S. has enacted a 26% reciprocal tariff against India, shattering hopes for relief under President Donald Trump's global trade strategy. "The tariff is higher than expected," said Colin Shah, managing director of Kama Jewelry, referring to the severe impact on exports.

India, the top global hub for diamond cutting and polishing, exports nearly $10 billion worth of gems and jewellery to the U.S., constituting 30.4% of its annual $32 billion export figure. Industry leaders believe a trade deal currently in negotiations could soften this setback.

(With inputs from agencies.)