India's $ 5,2 billion gems and jewelry industry are worried about the big loss due to Trump's new tariff policy. Traders of the industry were hopeful that India would get some tariff discounts due to Modi-Trump good relations. But India is also on the list that Trump announced on Wednesday. And this high tariff policy is feared that the country's jewelry exports could be hindered.
“The US president has imposed more tariffs than expected,” Colin Shah, managing director of India's diamond jewelry manufacturer, Kama Jewelry, told Reuters. This strict tariff will adversely affect the export. '
India is the world's largest diamond cutting and polishing center. Of the 5 diamonds processed around the world, 5 are ready in India. The United States is the largest market for gemstone and jewelry in India. India exports about $ 1 billion a year in the country. More than 5 percent of India's total income by exporting this product comes from the US market. India exports jewelry and gemstones to earn $ 1,220 billion a year.
The jewelry is third among the products that the United States imports from India. At the top of Indian export products are engineering and electronic products. The jewelry industry is the only source of livelihood for millions of people in India.
The Indian gem and jewelry industry was under pressure due to poor demand in China before the US Shulkop. In the fiscal year 2021-27, the country's jewelry exports fell to 5.7 percent to $ 12.7 billion.
Experts say a long -term bilateral trade agreement could overcome this loss for India. In the meantime, initial talk between the two countries is being implemented, according to officials, news agency Reuters said.
“We are hopeful that India will be able to reach a trade agreement with the United States within the next few months,” Jame and Jewelry Export Promotion Council (GJEPC) Vice -President Shaunak Parikh said. This difficult time has to be patient for a while. '
