The US retaliatory tariffs are a major setback for the Indian gems and jewellery exports, apex industry body GJEPC said on Thursday as it urged the government to take steps to secure the long-term interest of the sector.
The US has announced 27 per cent reciprocal tariffs on India saying New Delhi imposes high import duties on American goods, as the Donald Trump administration aims to reduce US' trade deficit and boost manufacturing.
The Trump administration's announcement of a 27 per cent reciprocal tariff on India would be a significant burden on Indian exporters and American consumers alike, the Gem and Jewellery Export Promotion Council (GJEPC) said in a statement.
"In the long-term, we foresee a reshaping of global supply chains. In the short-run, we anticipate challenges in sustaining India's current export volume of USD 10 billion to the US market.
"We urge the government of India to progress the Bilateral Trade Agreement between India and the US, as it would be crucial in navigating the tariff issues and securing long term interest of the sector," GJEPC added.
The US imports USD 11.58 billion gems and jewellery from India and exports USD 5.31 billion to the latter. The total bilateral trade between the US and India in the gems and jewellery sector is USD 16.89 billion.
Bilateral trade between India and the US includes natural and lab grown polished diamonds, gold and platinum jewellery, silver jewellery, imitation jewellery, rough diamonds, rough LGD, rough coloured gemstones, gold bar, silver bar and platinum bar, coloured gemstones.
Kama Jewelry MD Colin Shah said, it's a big setback for India as the US has announced retaliatory tariffs.
"While in the broader sense, it will be 27 per cent, the Gems and jewellery sector will be the most affected as import tariffs may be up to 20 per cent from the current '0' per cent on loose diamonds and 5.5-7 per cent on gold jewellery," Shah said.
Shah further noted that the US is one of India's largest jewellery export markets, accounting for almost 30 per cent of the share. Indian jewellery exports to the US are over USD 11 billion per year.
Experts said the retaliatory tariffs will significantly impact India's diamond and jewellery sector -- a cornerstone of its exports to the US, said the Council.
"India currently imposes a 20 per cent import duty on gold, silver, and platinum jewellery from the US. Efforts should be made to rationalise import duty as well as balance trade with all major nations. Import duties help protect local industries, but the retaliatory tariffs will end up negating this step by most governments," he added.
The US has announced 27 per cent reciprocal tariffs on India saying New Delhi imposes high import duties on American goods, as the Donald Trump administration aims to reduce US' trade deficit and boost manufacturing.
The Trump administration's announcement of a 27 per cent reciprocal tariff on India would be a significant burden on Indian exporters and American consumers alike, the Gem and Jewellery Export Promotion Council (GJEPC) said in a statement.
"In the long-term, we foresee a reshaping of global supply chains. In the short-run, we anticipate challenges in sustaining India's current export volume of USD 10 billion to the US market.
"We urge the government of India to progress the Bilateral Trade Agreement between India and the US, as it would be crucial in navigating the tariff issues and securing long term interest of the sector," GJEPC added.
The US imports USD 11.58 billion gems and jewellery from India and exports USD 5.31 billion to the latter. The total bilateral trade between the US and India in the gems and jewellery sector is USD 16.89 billion.
Bilateral trade between India and the US includes natural and lab grown polished diamonds, gold and platinum jewellery, silver jewellery, imitation jewellery, rough diamonds, rough LGD, rough coloured gemstones, gold bar, silver bar and platinum bar, coloured gemstones.
Kama Jewelry MD Colin Shah said, it's a big setback for India as the US has announced retaliatory tariffs.
"While in the broader sense, it will be 27 per cent, the Gems and jewellery sector will be the most affected as import tariffs may be up to 20 per cent from the current '0' per cent on loose diamonds and 5.5-7 per cent on gold jewellery," Shah said.
Shah further noted that the US is one of India's largest jewellery export markets, accounting for almost 30 per cent of the share. Indian jewellery exports to the US are over USD 11 billion per year.
Experts said the retaliatory tariffs will significantly impact India's diamond and jewellery sector -- a cornerstone of its exports to the US, said the Council.
"India currently imposes a 20 per cent import duty on gold, silver, and platinum jewellery from the US. Efforts should be made to rationalise import duty as well as balance trade with all major nations. Import duties help protect local industries, but the retaliatory tariffs will end up negating this step by most governments," he added.
