New Delhi [India], September 14 (ANI): Indian diamond and jewellery exporters are looking to set up production units in friendly countries to avoid the impact of US tariffs and maintain competitiveness in the American market, according to industry insiders.
However, despite the anticipation of industry insiders, no significant player has officially announced such a move so far.
The US currently has a 50 per cent tariff on Indian diamonds and gems, which took effect on August 27, 2025.
“Our American market is like a major market, and that is a major segment of our exports. But naturally, to circumvent that, people are finding out ways where they can have a partial making in India and then try to finish the product somewhere else. So that technically it is not from India and it’s not subject to heavy tariffs,” said Hetal Vakil Valia, former National Chairperson of the India Bullion and Jewellers Association (IBJA) women’s wing. She said this on the sidelines of the 13th Edition of the Delhi Jewellery & Gem Fair 2025 in the national capital on Sunday.
Yogesh Mudras, Managing Director, Informa Markets, said industry players are trying to look at different markets to export, like Europe, Southeast Asia, and the Middle East.
“Industry is also trying to understand that there’s risk at this moment,, so they are trying to look at different markets to export, especially markets like Europe, Southeast Asia, and the Middle East. They’re trying to reroute the jewellery by semi-processing and then going to countries like Oman, where they can process it fully and then export to the US,” Mudras told ANI.
On the need to diversify trade, Prasoon Dewan, Scientific Gemologist and CEO of Divish Aurum Private Limited, which exports to markets in Europe and other geographies, said, “Policy shifts create tensions; tariff risks are always an integral part of any export business. This should never be seen as the end of the road. I think it is wiser for every business house to have multiple and alternative market avenues into different markets.”
Encouraging businesses to think beyond traditional markets, Dewan added, “It’s important for the new Bharat to step out of its comfort zone and explore emerging markets. Latin American countries, for instance, may offer a warm entry for our goods, alongside untapped potential in Eastern Europe.”
He concluded by urging a balanced and inclusive global trade outlook: “Every market should be treated equally. We must venture into all potential regions with a fair and open trade approach.
According to Crisil Intelligence, Micro, small and medium enterprises (MSMEs) in sectors such as textiles, diamonds and chemicals, which together account for nearly 45 per cent of India’s total exports, are likely to be the most affected by the imposition of higher tariffs by the US.
In the gems and jewellery sector, Surat’s diamond polishers, who dominate the country’s exports with over 80 per cent share, will also be severely affected.
Diamonds form over half of India’s total gems and jewellery exports, with the US being a major consumer, accounting for nearly a third of shipments. (ANI)
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