India’s jewelery industry in crisis due to 25% tariff
The impact of US President Donald Trump’s announcement of 25% tariff on Indian products is now visible at the ground level. The country’s jewelery industry, which exports billions of dollars every year and employs millions of people, is now in deep crisis.
All India Gem and Jewelery Domestic Council Chairman Rajesh Rokade told ANI that especially the export of handmade jewelery will be severely affected by this decision. He says that earlier when 10% tariff was imposed, only the jobs of about 50,000 people were in danger. Now that this tariff has reached 25%, more than one lakh employment can be directly affected.
India exports a jewelery worth $ 9.9 billion to America
According to Commerce Ministry data, India exported gems and jewelery worth about $ 9.9 billion to the US in the last financial year. America is the largest market for this sector. But now after the new tariff, which is going to be implemented from August 1, India’s handmade and exclusive design jewelery will become expensive in America, which is expected to reduce the order. Rokade said that both the sales and acceptance of these products in the US can be affected.
Rokade also said that India had previously discovered markets like the European Union and Middle East as an alternative, but a big market like America will be a loss deal for the industry.
Colin Shah, managing director of Cama Jewelery, said that James and Jewelery is a sector that is completely dependent on exports. In such a situation, the impact of Trump’s tariff policy is sure to fall on the entire industry. He said that already the geopolitical tension released in Russia-Ukraine and Middle East has made the situation difficult. Now the uncertainty coming from America can push the industry further.
Trade deal conversation in August
However, the industry is expected from the Indo-US bilateral trade talks to be held in late August. It is believed that the issue will be raised prominently during the US delegation’s visit to India. Experts believe that this tariff may be temporary and can be reduced after a business agreement. But till then India’s jewelery industry will have to take vigilance.