New Delhi [India], September 14 (ANI): Indian diamond and jewellery exporters are exploring the option of setting up production units in friendly countries to bypass US tariffs and maintain competitiveness in the American market, according to industry insiders. However, no major player has officially announced such a move so far.
The US imposed a 50 per cent tariff on Indian diamonds and gems on August 27, 2025.
“Our American market is a major segment of our exports. Naturally, to circumvent the tariff, people are exploring ways to partially manufacture in India and then complete production elsewhere. That way, technically, the product is not from India and avoids heavy tariffs,” said Hetal Vakil Valia, former National Chairperson of the India Bullion and Jewellers Association (IBJA) women’s wing. She made the remarks on the sidelines of the 13th Edition of the Delhi Jewellery & Gem Fair 2025 in the national capital on Sunday.
Yogesh Mudras, Managing Director of Informa Markets, said industry players are also considering alternate export destinations.
“Industry is trying to understand the risks at this moment, so they are looking at different markets to export—especially Europe, Southeast Asia, and the Middle East. Some are rerouting jewellery by semi-processing in India and then sending it to countries like Oman, where it can be fully processed before export to the US,” Mudras told ANI.
Highlighting the importance of diversification, Prasoon Dewan, Scientific Gemologist and CEO of Divish Aurum Private Limited, which exports to Europe and other regions, said:
“Policy shifts create tensions; tariff risks are always part of export business. This should never be seen as the end of the road. It is wiser for every business to explore multiple and alternative markets.”
Encouraging exporters to think beyond traditional destinations, he added:
“It’s important for the new Bharat to step out of its comfort zone and explore emerging markets. Latin American countries, for example, may offer a welcoming entry for our goods, alongside untapped potential in Eastern Europe.”
Dewan concluded by urging a balanced and inclusive global trade outlook:
“Every market should be treated equally. We must venture into all potential regions with a fair and open trade approach.”
According to Crisil Intelligence, micro, small and medium enterprises (MSMEs) in textiles, diamonds, and chemicals—sectors that together account for nearly 45 per cent of India’s total exports—are likely to be among the hardest hit by the new US tariffs.
In the gems and jewellery sector, Surat’s diamond polishers, who contribute over 80 per cent of India’s exports, will be severely affected. Diamonds alone account for more than half of India’s total gems and jewellery exports, with the US being the biggest consumer, purchasing nearly a third of all shipments. (ANI)
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