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India-US Trade Deal Boosts Gems Sector, Cuts Tariffs to Zero

India's gems and jewellery industry is celebrating the India-US Interim Trade Agreement, which removes high tariffs that had crippled exports. The deal slashes customs duties to zero per cent for key items like loose diamonds, gold, and silver, making Indian products viable again for American buyers. Industry leaders anticipate a sharp recovery in export volumes and a significant boost to business. The agreement is also viewed as a long-term catalyst for job creation within the country.

Key Points: India-US Trade Pact Revives Gems & Jewellery Exports

  • Eliminates 50% US tariffs
  • Zero duty on loose diamonds
  • Gold and silver become duty-free
  • Expected sharp export recovery
  • Catalyst for domestic job creation
2 min read

Indian gems and jewellery sector lauds India-US Interim Trade Agreement

India's gems and jewellery industry hails interim US trade deal eliminating tariffs on diamonds, gold, and silver, promising export recovery and job growth.

"After the 50% tariff, my sector was severely affected, but this is good news. - Kirit Bhansali"

New Delhi, February 11

India's gems and jewellery industry is celebrating a significant breakthrough following the announcement of the India-US Interim Trade Agreement, which promises to eliminate high trade barriers and rejuvenate exports. Industry leaders and exporters have expressed relief as the deal addresses the tariff hikes that had previously hampered the sector's global competitiveness.

Commenting on the development, Kirit Bhansali, Chairman of the Gem and Jewellery Export Promotion Council (GJEPC) India, said it is a joyous moment for the entire gems and jewellery sector.

"After the 50% tariff, my sector was severely affected, but this is good news."

The agreement is expected to provide a direct boost to various segments of the industry by slashing customs duties that had made Indian products unviable for American buyers over the past few months.

Anup Mehta, Convenor of the Diamond Panel in GJEPC and President of Bharat Diamond Jewels, highlighted the specific duty exemptions that will now come into play. "It is very positive for our gem and jewellery sector," Mehta noted.

"Loose diamonds will go to zero per cent. Gold and silver will also go duty-free. Gem and jewellery sector will get a boost."

Exporters are already anticipating a sharp recovery in volumes as the cost of doing business with the United States drops significantly.

Sanket Patel, Convenor of Lebron Diamond CGPSC, praised the government's efforts in securing the deal. "What the government has done is great," Patel said. "Exports from India have already increased significantly. This year, we will see a big push from Lebron diamond exports."

Beyond immediate sales, the trade pact is being viewed as a catalyst for job creation within the country.

Alkesh Shah, Vice Chairman of Goldstar Jewellery, pointed out the long-term advantages of the lower tariff structure compared to international rivals. "It is going to be very helpful," Shah stated. "It will not only help grow the business but also employment."

- ANI

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Reader Comments

P
Priya S
As someone whose family is in the jewellery business in Jaipur, this is a huge relief. The 50% tariff was killing us. Hope this translates to better prices for artisans and karigars too.
M
Michael C
Good to see trade barriers coming down. As a buyer in the US, Indian jewellery offers incredible craftsmanship. Lower duties mean more options for consumers here. Win-win.
R
Rohit P
Positive step, but the government must ensure the benefits reach the small and medium exporters, not just the big players. We need transparent policies for duty credit.
S
Sarah B
Interesting development. Strengthening trade ties between the world's largest democracies is always a good thing. Hope this leads to more such agreements in other sectors.
K
Karthik V
Bharat's shine is returning! This will boost our forex reserves significantly. From diamonds in Surat to silver filigree in Cuttack, entire ecosystem will benefit. Jai Hind!

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