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GJEPC Hails India-U.S. Trade Deal as ‘Vital Relief’ for Gem & Jewellery Sector February 12, 2026 (0 comments)
Mumbai, India--The Gem & Jewellery Export Promotion Council (GJEPC) has welcomed the newly announced India-U.S. trade agreement, terming it a "vital relief measure" for an industry that has faced severe headwinds from escalating tariffs over the past year.
[Image via iStock.com/TinaFields]
In a statement, GJEPC Chairman Kirit Bhansali expressed gratitude to Prime Minister Narendra Modi, U.S. President Donald Trump, and Commerce Minister Piyush Goyal for securing a deal expected to restore confidence across the supply chain. "The tariff cut lowers costs for U.S. importers, provides immense relief to diamond jewellery manufacturers, and boosts the competitiveness of Indian diamond jewellery," Bhansali said.
The U.S. is India’s largest export market for gems and jewelry, accounting for 31% of total exports (approx. $9.23 billion) in FY 2024–25. However, trade flows were severely disrupted in 2025 when reciprocal U.S. tariffs on polished diamonds and colored gemstones surged from 0% to 10% in April, and then to 50% by August. Duties on jewelry similarly jumped from 5–7% to 55–57%.
The GJEPC reported that these hikes caused a 44.42% plunge in exports to the U.S. between April and December 2025. Key categories were hit hardest:
- Cut & Polished Diamonds: Down 60.11%
- Studded Gold Jewellery: Down 24.54%
- Plain Gold Jewellery: Down 28.89%
Under the new framework, the council is optimistic that loose diamonds and colored gemstones will regain zero-duty access under Annexure 3 of the reciprocal tariff list. "This is poised to revive demand and stabilize operations," the statement noted.
Read the entire announcement by GJEPC here.