Forced to rethink global strategy, the industry is considering shifting manufacturing to low-tariff countries
Mumbai: India’s $12 billion gem and jewellery exports to the United States are under threat after President Donald Trump announced a sweeping 50% tariff on all Indian goods, triggering concern across export sectors. The Gem & Jewellery Export Promotion Council (GJEPC) has called the move devastating, warning of halted shipments, disrupted supply chains, and widespread job losses.
“This is doomsday for the sector,” said Kirit Bhansali, Chairman, GJEPC, noting that 85% of exports from hubs like SEEPZ go to the US. “At this rate, the industry cannot survive without relocating production or receiving immediate government support,” he said.
With profit margins as low as 4-6%, the increased tariff makes Indian products unviable in the US. market. Exporters report cancelled or delayed orders as American buyers reassess sourcing. Colin Shah, MD of Kama Jewelry, said the tariff has already impacted MSMEs and could result in long-standing client losses.
To stay competitive, the industry is actively evaluating relocation to low-tariff countries such as Dubai and Mexico, which face US duties as low as 10% or less. Even large players like Titan are reportedly considering shifting operations to the Middle East.
GJEPC has also urged the Indian government to step in with policy relief, including duty drawback extensions, market diversification support, SEZ reforms, and interest deferments on working capital.
The move also raises concern over an unfair advantage for competitors like Thailand, Turkey, and Vietnam, which continue to enjoy significantly lower US tariffs, making Indian goods less attractive to American retailers.
While India’s domestic jewellery market — pegged at $85 billion and expected to grow to $130 billion in two years — offers some relief, exporters are under pressure to diversify markets and reduce dependence on the U.S.
GJEPC has already initiated outreach to new markets, including Saudi Arabia, with the Saudi Jewellery Exhibition (SAJEX) expected to open doors in the Middle East.
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