Indian gems sector seeks new markets to counter US tariffs

The Indian gems and jewellery industry is facing uncertainty due to potential tariffs from the United States. This sector plays a significant role in India's merchandise exports, accounting for about 10%. In response to the tariff threat, industry leaders are exploring new markets in Latin America, Vietnam, and Saudi Arabia. Kirit Bhansali, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), expressed optimism that the Indian government would protect the industry from tariffs. However, he warned that if tariffs are implemented, the US market, which is currently the largest for Indian exports, could see a substantial decline in business. The GJEPC has set an ambitious target of $70 billion in exports by 2030. Meanwhile, there are signs of growth in other markets. Nirav Bhansali, CEO of Prism Jewellery, noted that while demand in China remains slow, interest in natural diamonds is increasing, particularly following a recent trade show in Hong Kong. The UAE market has seen significant growth, especially under a recent trade agreement. Domestically, the industry expects to grow at around 10% as new organized players enter the market. However, the latest data shows that gem and jewellery exports in February dropped to $2.42 billion, a decline of over 23% compared to the previous year. In Karnataka, the government is willing to offer land for establishing a jewellery park near the Bengaluru international airport. This initiative aims to enhance the state's export potential and attract investment in the jewellery sector. The state is currently a leading destination for foreign direct investment and ranks high in GST collection.