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Gem and Jewellery Export Promotion Council (GJEPC) has urged the government to bring in immediate policy reforms to support the industry, which is facing challenging times due to a steep 50% tariff imposed by the US on all Indian goods. GJEPC chairman Kirit Bhansali has said that the United States is the largest market for Indian gems and jewellery sector, accounting for over $10 billion in exports, nearly 30 per cent of the industry's total global trade. He said US President Donald Trump's announcement of a sweeping 50 per cent tariff on all Indian goods is a deeply concerning development and the move will have far-reaching repercussions across India's economy, disrupting critical supply chains, stalling exports, and threatening thousands of livelihoods.  

GJEPC chairman stated that the Indian gem and jewellery sector, in particular, stands to be severely impacted and a blanket tariff of this magnitude is severely devastating for the sector. He further said, currently there is significant reliance on the US market, as 85 per cent of exports from SEEPZ SEZ, which provides 50,000 jobs, is directed there. For cut and polished diamonds, half of India's exports are US-bound and with the revised tariff hike, the entire industry may come to a standstill, placing immense pressure on every part of the value chain, from small karigars to large manufacturers. 

He said what adds to the concern is that competing manufacturing hubs such as Turkey, Vietnam and Thailand continue to enjoy significantly lower tariffs of 15 per cent, 20 per cent and 19 per cent, respectively, making Indian products relatively less competitive in the US market. He said 'this imbalance, if unaddressed, could erode India's long-standing position as a key supplier to the US. We are also concerned about the possibility of trade rerouting through low-tariff destinations such as Mexico, Canada, Turkey, UAE, or Oman, undermining the spirit of legitimate trade and impacting transparency.'