After year of turmoil, Indian diamonds and gems set to shine in US markets

MUMBAI: Zero-duty access for diamonds and coloured gemstones to the US under the interim trade agreement framework will benefit the gems and jewellery sector, which was termed by industry leaders as a “critical inflection point” after bruising year for exports.The move could help reverse the sharp decline in shipments to India’s largest market, where cut and polished diamond exports fell by over 60% – from $3.64 billion to $1.45 billion – amid tariff-induced loss of competitiveness, they said.Kirit Bhansali, chairman of Gem and Jewellery Export Promotion Council, said, “Last year has been particularly difficult for the sector, and this step restores a level playing field for Indian exporters.”India and the US announced on Saturday that they had reached a framework for an interim trade agreement under which both sides will reduce import duties on a range of goods to boost bilateral trade.“This is a big breakthrough and will lead to more jobs. The tariff rollback will help revive exports and bring back confidence in the market,” said Ashok Gajera, MD Laxmi Diamonds.Under the framework, duties on jewellery have been brought down to 18%, offering what the industry described as immediate, if partial, relief. GJEPC has also urged govt to include lab-grown diamonds and synthetic gemstones in the exemption list, which currently stands at 18%.All India Gem and Jewellery Domestic Council (GJC) chairman, Rajesh Rode, said zero-duty access would give Indian exporters unprecedented entry into the US market. “This strengthens global competitiveness, improves margins, and ensures that artisans’ creations reach international consumers at fair prices.” GJC’s vice-chairman Avinash Gupta described the move as a game-changer for small and medium enterprises that form the backbone of the sector.