US Tariffs Hit Indian Gem and Jewellery Sector Hard

The U.S. government's move to implement a 25% tariff on Indian imports has sent shockwaves through the Indian gem and jewellery sector, according to industry experts. This decision, announced Thursday, is expected to have profound implications on one of India's key economic contributors, as the sector heavily relies on exports.

Kirit Bhansali, Chairman of the Gem and Jewellery Export Promotion Council, highlighted the critical nature of the issue. "The U.S. is our single largest market," Bhansali stated. He warned that such a sweeping tariff would escalate costs, disrupt shipments, affect pricing, and exert immense pressure across the value chain, from small craftsmen to major manufacturers.

Industry leaders, including All India Gem and Jewellery Domestic Council Chairman Rajesh Rokde and Kama Jewelry MD Colin Shah, echoed these concerns, emphasizing the tariff's potential to impede economic cooperation and impact millions of jobs reliant on bilateral trade. However, future negotiations in the upcoming India-U.S. Bilateral Trade Agreement talks offer a glimmer of hope for resolution.

(With inputs from agencies.)