Kirit Bhansali, Chairman, GJEPC, said the agreement restores confidence across the entire value chain, particularly at a time when exporters were grappling with disrupted trade flows, rising costs, and compressed margins. The U.S. remains India’s largest export market, accounting for 31 per cent (US$ 9.23 billion) of total gem and jewellery exports in FY 2024–25.
In 2025, reciprocal U.S. tariffs severely impacted exports to the country. Duties on cut and polished diamonds and coloured gemstones rose sharply from zero to 10 per cent in April and further escalated to 50 per cent by August, making exports commercially unviable. Jewellery duties also surged from 5–7 per cent to as high as 55–57 per cent.
As a result, India’s gem and jewellery exports to the U.S. declined by 44.42 per cent between April and December 2025, falling from US$ 8,691.25 million to US$ 3,862.08 million. Cut and polished diamonds recorded the steepest fall of 60.11 per cent, while studded gold jewellery declined by 24.54 per cent and plain gold jewellery by 28.89 per cent.
GJEPC noted that the tariff reductions under the new trade agreement will lower costs for U.S. importers and provide significant relief to Indian diamond jewellery manufacturers, enhancing competitiveness in India’s largest export market. The move is expected to revive demand and bring much-needed stability to operations.
The Council also expressed optimism that, following India’s signing of the agreement, loose diamonds and coloured gemstones from India will qualify for zero-duty imports into the U.S. under Annexure 3 of the U.S. reciprocal tariff list. This is expected to offer critical support to diamond exports, improve trade flows, and deliver a sector-wide boost.
GJEPC extended its appreciation to the Government of India and the U.S. administration for securing the agreement and said it remains in close consultation with authorities, while awaiting detailed notifications on implementation.