Mumbai: The Indian gem jewellery industry on Saturday welcomed the announcement of zero-duty access for diamonds and coloured gemstones to the US under the Interim Agreement framework, saying it is a turning point that will give a fresh boost to the sector.
“We are elated by the Interim Agreement framework announcing zero-duty access for diamonds and coloured gemstones to the US, especially after a difficult year in which India’s cut and polished diamond exports to our largest market fell by over 60 per cent, from USD 3.64 billion to USD 1.45 billion, due to tariff-driven loss of competitiveness,” GJEPC Chairman Kirit Bhansali said in a statement.
India and the US on Saturday announced they have reached a framework for an interim trade agreement under which both sides will reduce import duties on a number of goods to boost two-way trade.
Tariffs will go down to zero on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts, thereby further enhancing India’s export competitiveness and Make in India.
Under the framework, Bhansali said, jewellery duties have been reduced to 18 per cent, providing immediate relief, and GJEPC expects full zero-duty treatment for diamonds and coloured gemstones once the agreement is concluded, which will help revive exports and restore competitiveness.
“The Council has also taken up with the government the inclusion of laboratory-grown diamonds and synthetic gemstones in the exemption list of US tariffs,” he added.
All India Gem and Jewellery Domestic Council (GJC) chairman Rajesh Rokde said, with tariffs on gems and diamonds now reduced to zero, Indian exporters gain unprecedented access to the US market.
“This breakthrough strengthens our global competitiveness, boosts margins, and ensures our artisans’ creations reach international audiences at fair prices. While jewellery continues under an 18 per cent tariff, the gains in gems and diamonds are a powerful step forward, positioning Indian craftsmanship as a global symbol of excellence,” he stated.
GJC vice chairman Avinash Gupta thanked the government for its relentless efforts in achieving this historic zero-duty milestone.
The removal of tariffs on gems and diamonds is a game-changer, especially for small and medium enterprises that form the backbone of our sector, he said.
“SMEs and family-run businesses will now access the US market on equal terms, leading to higher exports, stronger revenues, and significant job creation. While finished jewellery remains at 18 per cent duty, this agreement lays the foundation for broader opportunities and creates a multiplier effect across allied industries such as logistics, design, and retail. It is both an economic and social victory, empowering communities nationwide,” he added.
Kama Jewelry MD Colin Shah said, the announcement of zero tariff on gems and diamonds is a momentous one and well rejoiced by the Indian gems and jewellery sector.
“India being the global hub for diamond processing was impacted severely due to the trade tariffs, where trade had dropped over 60 per cent when it comes to cut and polished diamonds. The waiver of tariffs will help revive exports and reinstate the sparkle in business.
“We are thankful to the Indian government and the Ministry of Commerce for the negotiation, as this will not just give a fillip to the sector but also go a long way in adding substantial value to the goal of ‘Aatmanirbhar Bharat’,” he added.
