NewKerala.com

Key Points

The US is doubling tariffs on Indian gold jewellery, raising concerns over export competitiveness. Industry leaders warn of severe job losses for skilled artisans. The move may also weaken the rupee and increase domestic gold prices. India’s $22B jewellery export sector faces uncertainty despite growth targets.

Key Points: Indian Gold Jewellery Sector Alarmed by 50% US Tariff Hike

  • US tariffs may make Indian gold jewellery uncompetitive in key markets
  • Artisans and small workshops face livelihood risks
  • Rupee pressure could raise domestic gold prices
  • India aims for $100B gems & jewellery exports by 2027
2 min read

Gold jewellery sector raises alarm over 50% US tariffs

Indian jewellery exporters warn of job losses and economic strain as US imposes 50% tariffs on gold jewellery, threatening artisans and export growth.

"A cumulative 50% tariff threatens widespread job losses and destabilises local economies. – Rajesh Rokde, GJC Chairman"

New Delhi, August 7

With the US set to impose an additional 25 percent tariff on Indian gold jewellery exports from August 27--on top of the 25 per cent already in effect--industry leaders have expressed deep concern over the mounting pressure on the sector.

Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), said, "The imposition of a 25 per cent tariff on Indian gold jewellery exports--already in effect--and the additional 25 per cent set to be enforced from 27th August represent a compounded blow to the sector."

He warned of severe consequences for artisans. "This steep escalation not only renders our products significantly less competitive in the US market, but more critically, it jeopardises the livelihoods of thousands of skilled artisans who depend on export demand for their survival. A cumulative 50 per cent tariff threatens widespread job losses, destabilises local economies, and risks eroding a rich cultural heritage. We urge the government to act swiftly and engage in trade negotiations that protect these livelihoods and uphold India's global leadership in handcrafted jewellery."

Echoing similar concerns, GJC Vice Chairman Avinash Gupta emphasized the broader economic impact, including pressure on the Indian Rupee. "The 25 per cent tariff on Indian gold jewellery exports--already in effect--with an additional 25 per cent set to begin on 27th August, delivers a compounded blow to the sector. It makes our products less competitive in the U.S. market and jeopardizes the livelihoods of thousands of skilled artisans, many from marginalised communities, who sustain India's centuries-old jewellery craftsmanship through small workshops and family enterprises."

This tariff shock is also pressuring the Indian Rupee, likely making gold costlier for domestic consumers and dampening demand within India--further straining the industry.

In FY 2023-24, India's gems and jewellery exports stood at 22 billion US dollars, projected to reach USD 100 billion by 2027.

India is the top global exporter of diamonds and the largest consumer of gold.

Gems and Jewellery exports increased by 10.74 per cent from USD 2.26 billion in April 2024 to USD 2.5 billion in April 2025. The gems and jewellery exports to United States are estimated to be USD 11 billion.

The central government has said it is committed to maintaining India's status as a global manufacturing hub with a focus on quality, standardization, and consumer protection.

- ANI

Share this article:

Reader Comments

S
Shreya B
Why is US targeting our jewellery sector specifically? This feels like economic bullying. Our handmade jewellery is world famous and they want to kill this ancient craft. Very unfair!
A
Avinash Gupta
As someone in the industry, this will have ripple effects. Gold prices may rise domestically too. Time to explore other markets like Middle East and Europe where appreciation for craftsmanship is higher.
P
Priyanka N
Maybe this is an opportunity to focus more on domestic market? Indian weddings and festivals create huge demand. We should value our own artisans first 🇮🇳
K
Karan T
While I sympathize with artisans, our industry leaders should have seen this coming. Over-dependence on any single market is risky business strategy. Need to diversify exports.
M
Meera T
Heartbreaking for our karigars! Their intricate work is what makes Indian jewellery special. Hope government provides some relief package or skill development alternatives 🙏
D
David E
Working in Mumbai's jewellery trade - this will hit small exporters hardest. The big players have buffers, but the family-run workshops will suffer. Need urgent policy intervention.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50