Over 1 Lakh Jobs at Risk in India’s Jewellery Sector as US Imposes 25% Import Tariff: Jewellery Exporters

India’s jam and jewellery industry may be heading towards a serious employment crisis after the US announced a fresh 25% tariff on Indian imports. Jewellery manufacturers and exporters have raised concerns, saying this new policy could affect over one lakh jobs in the sector, which is a major contributor to the country's export economy.

Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council, said that this move could hit handmade jewellery exports the hardest. He said such products may lose acceptance in the US market completely due to increased pricing and import costs.

Higher Tariffs, Bigger Threat

Rokde recalled that during the earlier tariff hike, when a 10% duty was imposed, around 50,000 workers had been impacted. He fears this time the situation could be worse. “If this 25% tariff affects us the same way, more than one lakh people could lose their jobs. That would be a huge blow to the jewellery business,” he said. The new tariffs are set to be implemented from August 1. “It is very upsetting,” he added, “as the increase from 10% to 25% is too steep and sudden.”

Despite the expected hit, Rokde believes that the US could also feel the pressure of this decision. He pointed out that Indian jewellery has a strong presence in global markets, including the European Union and the Middle East, where India could shift focus.

US Remains Key Market

According to data from the Ministry of Commerce, the United States is among the largest buyers of Indian gems and jewellery. In the last financial year alone, India exported jewellery worth $9.9 billion to the US. A significant reduction in this figure would seriously impact export revenues and employment across the country.

Colin Shah, managing director of Kama Jewellery, also voiced his concerns. He said this new tariff is a serious challenge, especially since the jewellery sector depends heavily on overseas markets like the US. “We are already facing problems due to ongoing geopolitical issues between Russia and Ukraine, and tensions in the Middle East. This adds more pressure,” he explained.

Hopes from Trade Talks

Shah also said that with former President Donald Trump returning to power, the trade environment has once again become uncertain. He added, “There’s growing fear among exporters. If the US continues with such policies, trade volumes may remain low in the coming months.”
 Industry experts are now waiting for the sixth round of the India-US Bilateral Trade Agreement talks, which is scheduled at the end of August. Many are hoping that the US delegation’s visit to India could help in resolving some of these trade challenges or bring temporary relief to exporters.