With the looming possibility of US tariffs on Indian gems and jewelry, industry leaders are diversifying into alternative markets such as Latin America, Vietnam, and Saudi Arabia.
As the sector contributes nearly 10% of India’s total merchandise exports, stakeholders are confident in government support but acknowledge the risk of significant disruptions to US-bound trade.
Indian jewelry exporters are strengthening ties with key international partners to offset potential losses. The UAE has seen a surge in trade under the Comprehensive Economic Partnership Agreement (CEPA), with gold jewelry exports up 60% and diamond jewelry exports rising 17% in three years.
India is also pursuing free trade agreements with Australia and other nations to bolster exports.
Despite global uncertainties, India’s domestic jewelry market continues to expand at a steady 10% annual growth rate. However, exports have faced challenges, with a 23.49% decline in February, totaling $2.42 billion compared to $3.17 billion last year, according to the latest GJEPC data.
To further support the industry, Karnataka’s Industries Minister MB Patil announced plans to allocate land for a jewelry park near Bengaluru International Airport. With the state leading in foreign direct investment (FDI) and ranking second in GST collections, industry stakeholders are encouraged to capitalize on this opportunity.
Despite global challenges, Indian jewelry exporters remain resilient, actively seeking new trade routes while relying on government support to maintain their global standing.
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