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US-India Trade Deal: Zero Tariff on Diamonds & Gemstones Boosts Industry

The India-US trade deal's provision for zero percent tariffs on diamonds and gemstones is hailed as a major step forward for the industry by GJC's Avinash Gupta. He states it will significantly help India's cutting and polishing sector survive and thrive. Gupta appeals for jewellery to also be included in the zero-duty framework in future negotiations to unlock greater benefits. He links this progress to Prime Minister Modi's vision of establishing India as a global jewellery production hub and a complete exporter nation by 2047.

Key Points: Zero US Tariff on Diamonds in India-US Trade Deal: GJC

  • Zero US tariff on diamonds & gemstones
  • Boost for India's cutting/polishing industry
  • Appeal to include jewellery in future
  • Supports Make in India vision
  • Aims for India as global jewellery hub by 2047
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Zero US tariff on diamonds and gemstones a major step forward: GJC's Avinash Gupta

India-US trade deal moves diamonds & gemstones to 0% tariff, boosting Make in India. GJC's Avinash Gupta calls it a major step for the industry.

"This trade agreement is very comprehensive and I believe it will bring major benefits to 'Make in India'. - Avinash Gupta"

Mumbai, Feb 10

The India-US trade deal is very good and the biggest advantage it brings to the diamond industry is that under Section 3, diamonds and gemstones will now be moved to a zero per cent tariff, which is a major step forward, Avinash Gupta, Vice Chairman of All India Gem and Jewellery Domestic Council, has said.

Speaking to IANS, Gupta said the deal will greatly help India's cutting and polishing industry to survive, as earlier, 9 out of 10 diamonds were cut in India, and the US tariffs caused many artisans in Surat to face difficulties.

"This trade agreement is very comprehensive and I believe it will bring major benefits to 'Make in India'. Along with skill transfer in various industries, India's recent trade deals, not just with the US but also with the EU, will have a significant impact," he mentioned.

He further stated that when we talk about zero per cent duty in the gems and jewellery industry, it currently applies only to diamonds and gemstones.

"Jewellery itself is a very large segment, which has not yet been included under the zero per cent duty bracket. I would appeal to the government to also include jewellery under Section 3 during future negotiations. If jewellery is brought under this framework, it will bring huge benefits," Gupta told IANS.

As manufacturing hubs continue to develop in India, one can already see the positive impact.

"Earlier, when electronics manufacturing began in India, our country was a net importer but today, it has become an exporter. The same pattern is being seen in the automobile industry and now in the gems and jewellery sector as well," said Gupta.

At present, the government has set a very big target - to make India a complete exporter country before 2047 and to establish it as a global production hub for jewellery.

"This vision of Prime Minister Narendra Modi, I believe, will be achieved by 2047," Gupta added.

- IANS

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Reader Comments

S
Sarah B
As someone who follows international trade, this is a strategically important deal. It strengthens the India-US economic partnership and directly supports the 'Make in India' initiative. A win-win.
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Priyanka N
Good step, but Mr. Gupta is right. Why stop at diamonds and gemstones? The finished jewellery segment employs lakhs of people, especially women in small towns. Including it in zero duty should be the next priority for our negotiators.
A
Aman W
The comparison with electronics and automobiles is spot on. We have the skill and the scale. With the right policy push, India can truly become the jewellery workshop of the world. 2047 vision seems achievable!
K
Kavya N
Hope the benefits actually reach the karigars (artisans) and small business owners, not just the big exporters. The government must ensure fair wages and working conditions improve with this boom.
M
Michael C
Positive development for global trade. Reducing tariffs on raw materials helps streamline supply chains. Interested to see how this impacts prices for consumers in the US market as well.

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