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India-US Trade Deal to Boost Gems Exports by 25%, Says Industry Chief

The gems and jewellery export sector anticipates a major recovery, expecting a 20-25% increase in shipments to the US following a forthcoming trade agreement. Industry leader Kirit Bhansali highlighted that the deal will provide relief after a period where overall exports fell by 44%. The sector has also welcomed the Union Budget's significant allocation of ₹7 lakh crore for MSMEs, which form the backbone of the industry. Bhansali further pointed to existing FTAs with countries like the UAE as successful models for boosting international trade.

Key Points: India-US Trade Deal to Drive 25% Gems, Jewellery Export Growth

  • US trade deal to reverse 44% export decline
  • Budget's ₹7L crore MSME boost welcomed
  • UAE FTA cited as successful model
  • High tariffs had hit blue diamond exports
  • Industry seeks easier MSME credit access
2 min read

India-US trade deal to drive 25% export growth for gems and jewellery, says GJEPC Chairman

GJEPC Chairman expects a 25% export surge to the US after a new trade deal, reversing a sharp decline. The industry also welcomes MSME focus in the budget.

"With a new hope and expectation, we hope that we will be able to export 20-25 per cent more to the US this year. - Kirit Bhansali"

Mumbai, February 5

The gems and jewellery industry in India expects a significant recovery following the announcement of a trade agreement with the United States. Kirit Bhansali, Chairman of the Gems and Jewellery Export Promotion Council, stated that the agreement, set to be finalised in March, will provide much-needed relief to a sector that has struggled with high tariffs over the last year. He noted that the US remains the most critical market for Indian exports, and the deal is expected to reverse a sharp decline in trade volumes.

"Our entire sector was worried for the past six months," Bhansali said. He explained that exports to the US had previously plummeted, with overall shipments falling by 44 per cent and exports of blue diamonds dropping by 60 per cent. With the new agreement in place, Bhansali expressed optimism for the near future. "With a new hope and expectation, we hope that we will be able to export 20-25 per cent more to the US this year," he added. He credited the Ministry of Commerce for its consistent dialogue with Washington to secure the interests of the Indian jewellery sector.

The industry has also welcomed the recent Union Budget, particularly for its focus on small businesses. Bhansali highlighted that more than 80 per cent of the people in the gems and jewellery industry work within the Micro, Small, and Medium Enterprises (MSME) sector. He noted that the budget's allocation for these businesses will directly address long-standing issues regarding manufacturing and credit.

"For the first time in the budget of Azad India, 7 lakh crore has been allocated for MSMEs," Bhansali said. He mentioned that the industry had specifically requested easier access to bank finance for these smaller units. "Many steps have been taken to increase MSMEs and to increase manufacturing. I welcome this in the budget," he stated, adding that these policies will help the sector grow within the national economy.

Regarding broader international trade, Bhansali emphasised that India is committed to strengthening ties with all friendly nations through Free Trade Agreements (FTAs). While acknowledging the massive scale of the US market, he pointed out that previous agreements with countries like the UAE and the UK have already yielded positive results. He noted that income from the UAE has grown significantly since the FTA was signed four years ago.

- ANI

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Reader Comments

S
Shreya B
Finally some positive news for our exporters. The drop in exports by 44% was really alarming. My uncle's small diamond polishing unit in Surat was on the verge of shutting down. This deal, combined with the MSME focus in the budget, feels like a lifeline. Hope the benefits reach the ground level quickly.
R
Rahul R
While the deal is welcome, we must ensure it's not just about big exporters. The article rightly points out 80% are in MSMEs. The government must monitor that the easier bank finance and 7 lakh crore allocation actually helps the small workshops and not just the large corporations. Implementation is key.
A
Aman W
Strong trade ties with the US are crucial, but let's not forget other markets. The UAE FTA success story mentioned here is a good example. We should aggressively pursue more such agreements, especially with European nations. Diversification will make our economy more resilient. 💎
P
Priyanka N
As someone who works in the industry, the high US tariffs were killing us. This is a huge relief. The focus on manufacturing in the budget is also a big yes. More power to 'Make in India'! Hoping for a good festive season for exports now.
M
Michael C
Interesting read from an Indian perspective. The US market is indeed massive for luxury goods. A stable trade relationship benefits both countries. Hopefully, this leads to more affordable and diverse Indian jewellery designs for American consumers as well.

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