India holds a prominent position in the global diamond and jewellery industry, being the world’s largest exporter of loose cut and polished diamonds. This sector supports thousands of jewellery exporters in Maharashtra and hundreds of thousands of skilled artisans in Gujarat, making it a vital component of India’s manufacturing and export ecosystem.

However, the industry faces a serious challenge following the U.S. government’s imposition of tariffs—50% on gems and 57% on finished jewellery. This move has triggered immediate concerns among exporters and craftsmen, as the tariffs drastically increase the cost of Indian diamonds and jewellery in the world’s largest consumer market.

Business owners and trade associations have reached out to the government, requesting short-term policy interventions to help mitigate the impact of these tariffs. They argue that without timely support, Indian exporters may lose competitiveness, affecting both international market share and domestic employment.

The tariffs have significant implications: for Maharashtra, where the majority of jewellery exporters operate, the increased costs could affect production schedules and order volumes. In Gujarat, home to lakhs of skilled artisans, reduced demand from the U.S. market could lead to job losses and income instability for families reliant on the diamond and jewellery sector.

Industry stakeholders are exploring measures such as duty drawback enhancements, export incentives, and temporary subsidies to offset the sudden hike in trade barriers. Experts note that such measures are crucial to maintaining India’s leadership in the global diamond and jewellery market and to ensure the livelihoods of artisans across key manufacturing hubs.

The situation underscores the sensitivity of India’s export sector to global trade policies. With the U.S. being a primary market for Indian gems and jewellery, tariffs of this magnitude can disrupt the entire supply chain—from procurement of raw stones to final polished products.

In conclusion, India’s diamond and jewellery industry is at a crossroads. Immediate policy support and strategic planning are essential to sustain the sector, protect jobs, and maintain India’s standing as a leading global supplier of high-quality gems and jewellery. Exporters and artisans alike are hopeful that the government will take decisive action to cushion the impact of these unprecedented tariffs.

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