Gems & Jewellery Exporters Hit By US Tariff, Seek Relief

New Delhi, Sep 1 (KNN) The Gems and Jewellery Export Promotion Council (GJEPC) has called on the Centre to announce urgent relief measures following the United States’ decision to impose 50 percent tariffs on Indian goods—a step exporters warn is already impacting the USD 40 billion industry. 

The penal duties, which took effect on August 27, have disrupted shipments to the US—India’s largest market for diamonds—and raised concerns over slowing orders, mounting cancellations, and job losses in hubs like Surat, which processes nearly 90 percent of the world’s diamonds and directly employs about 200,000 workers.

“If the concerns are not addressed within a quarter, the market will face deeper setbacks,” GJEPC Executive Director Sabyasachi Ray told PTI.

He added that while exporters had ‘front-loaded’ consignments in anticipation of trade disruptions, the sudden tariff action has left the sector struggling.

“Now the industry requires immediate extension of credit timelines from 90 days to 180 days or more, moratorium in installment payment and interest equalisation to provide respite immediately,” he said. 

Among its proposals, the GJEPC has requested an extension of the export obligation period under duty-free gold import schemes for shipments to the US, increasing it from 90 days to 180 months. 

It has also sought permission for SEZ units to release inventory into the domestic market and carry out reverse job work. 

Additionally, the council has called for reimbursement of 25–50 percent of the additional US tariffs imposed between August and December 2025, along with deferment of interest on working capital loans and a six-month moratorium on packing credit loans linked to US exports.

Another key demand is the reintroduction of the interest equalisation scheme.

The council has also requested enhanced government support for global exhibitions and promotion of Indian jewellery overseas. 

On the labour front, it has urged measures to protect workers, including restructuring of personal loans, education grants for girl children, and temporary coverage under the Ayushman Bharat scheme.

(KNN Bureau)