India’s gems and jewellery industry has reacted positively to the recently agreed India-US trade agreement, seeing significant potential for renewed export growth after a period of steep tariff-related decline and uncertainty.
Industry representatives have noted that the tariff framework agreed between New Delhi and Washington — which includes zero-duty access for diamonds and coloured gemstones and lower tariffs on other jewellery items — could help Indian exporters regain competitiveness in one of their most important markets.
Relief After Challenging Times
Tariffs on Indian gems and jewellery sent to the United States had climbed sharply over the past year, with duties rising to punitive levels that eroded demand and profit margins. Reports from export hubs like Surat and Jaipur highlighted deep declines in shipments and widespread concerns among manufacturers when tariffs topped 50 % in late 2025.
With the new trade pact, many in the sector feel that zero-duty access for polished diamonds and coloured gems — and significantly reduced tariffs on finished jewellery — could breathe new life into export orders. Industry leaders suggest that the improved tariff regime may restore confidence among US buyers and rekindle previously stalled trade relationships.
Market and Exporter Optimism
Exporters and trade bodies have welcomed the tariff cuts as a chance to re-establish India’s position in the US gems and jewellery market, which accounts for a significant portion of the country’s foreign shipments in the sector. Reduced trade barriers are expected to make Indian products more price-competitive and attractive to global buyers, potentially boosting export volumes and supporting jobs in key manufacturing centres.
While challenges remain — including the pace at which orders return and how domestic firms adapt — many exporters see the trade deal as a turning point after a period of sharp export contraction.
