Gems and jewellery exporters reached out to the Reserve Bank of India (RBI) on Tuesday, urging it to ensure working capital credit flow is not impacted after the imposition of 50% tariff by the US. The traders have also engaged US legal and business experts to seek advice on rerouting shipments through other nations that face lower tariffs.
Gem & Jewellery Export Promotion Council (GJEPC) chairman Kirit Bhansali met RBI deputy governors and other senior officials and requested them to instruct banks so that they can be lenient on working capital requirements for the industry, as US orders may not come immediately and there may be a delay in payments from the US buyers.
GJEPC officials had also met Niti Aayog executives last week and requested them to allow manufacturing of gems and jewellery at the Mumbai Santacruz Electronics Export Processing Zone (SEEPZ) for the domestic market. With export orders frozen as of now, most of these units may shut down unless the government intervenes, they said.
The US is the largest export destination for India’s gems and jewellery industry, with exports worth nearly $10 billion in 2024-25. India cuts and polishes nine out of 10 natural diamonds available in the global markets, including the US.
Several exporters are also thinking of rerouting their consignments through other countries which face lower tariffs.
Bhansali said some of the big exporters have engaged with US legal experts to see the legalities of rerouting through Dubai, Turkiye and Mexico, where they intend to set up new units.
“We are sticking to transparency and have told our exporters not to resort to malpractices for exporting gems and jewellery,” he said.
Meanwhile, workers and companies in Surat, the diamond hub of the country, fear that there will be significant job losses after the Diwali vacation.
