New Delhi: The gem and jewellery industry has requested finance minister Nirmala Sitharaman to allow export-oriented jewellery units in Mumbai’s SantaCruz Electronics Export Processing Zone (SEEPZ) and other SEZs to manufacture for the domestic market, as steep US tariffs pose a dire challenge to them. At a meeting with the minister Wednesday, industry representatives also sought a six-month moratorium on interest payment for loans taken to finance exports to the US.
The finance ministry has received such requests from the commerce ministry and industry representatives earlier as well, a finance ministry official told ET, adding that the demand might be difficult to meet.
Gem & Jewellery Export Promotion Council (GJEPC) representatives including chairman Kirit Bhansali and executive director Sabyasachi Ray attended the meeting.
They argued that permitting manufacturing of jewellery for the domestic market from the SEZs will help retain jobs of the workers at a time when the exporters are facing a steep decline in export orders for the US due to high tariffs. The Trump administration has imposed 50% tariffs on imports from India, including a penal tariff of 25% from August 27 for New Delhi’s decision to continue purchase of Russian oil.
The ministry official said what the industry is asking for is a three-month duty exemption window to sell in the domestic market to tap the festive season, but there are many technical challenges related to that.
At present, SEZs pay full customs duty in case a finished product is sold outside these zones, known as the domestic tariff area. The industry had proposed to the Ministry of Finance to levy duty on imported raw material instead, the official said.
India had exported gems and jewellery worth $10 billion to the US in fiscal 2025.
