Kolkata: Gems and jewellery exporters on Wednesday met commerce and finance ministry officials to discuss a bailout package for the sector for coping with Trump's 50% tariffs on Indian goods, considering the US is a key market, accounting for more than 35% of exports.
Exporters under the industry body Gem & Jewellery Export Promotion Council (GJEPC) are pushing for financial support to enable market diversification, deferment of interest on working capital from August 1 till January 1, 2026, pre-shipment finance relief, and allowing special economic zones (SEZs) to manufacture jewellery for the domestic market.
Some of the small diamond-cutting and polishing units in Surat have already started laying off workers, industry executives said, highlighting the worsening state of the industry.
Sabyasachi Ray, executive director at GJEPC, said the association is holding talks with the ministries.
"We will be discussing with the ministries on the proposals that we have given to the Reserve Bank of India (RBI) for short-term relief to the sector before the final bilateral trade agreement is clinched between India and the US," he said.
Exporters are already facing the impact of the initial 25% US tariffs, effective August 7, which led to drying up of US orders. The doubling of tariffs from Wednesday is expected to intensify challenges for the industry. India had exported $10 billion worth of gems and jewellery to the US in FY25.
"We have also asked for extending the payment realisation period from the current nine months to 15 months for exports made to the US and also introduction of short-term concessional loans or liquidity packages, specifically for the gem and jewellery sector," said Kirit Bhansali, chairman, GJEPC.
Bhansali said exports to the US have slipped 32% on-year to $2.12 billion during the April-July period. "With the new tariff in place from August 27, we fear exports to the US could fall over 75% impacting polished diamonds, jewellery and coloured gemstones alike," he said.
Surat, India's diamond cutting and polishing hub, employs 800,000 to a million workers.
"In the morning when I came to my workplace, I was told that my job is no more," said Rajesh Ravajibhai, manager at a diamond exporting firm in Surat. Ravajibhai declined to name the company fearing that he might not get another job elsewhere.
Exporters under the industry body Gem & Jewellery Export Promotion Council (GJEPC) are pushing for financial support to enable market diversification, deferment of interest on working capital from August 1 till January 1, 2026, pre-shipment finance relief, and allowing special economic zones (SEZs) to manufacture jewellery for the domestic market.
Some of the small diamond-cutting and polishing units in Surat have already started laying off workers, industry executives said, highlighting the worsening state of the industry.
Sabyasachi Ray, executive director at GJEPC, said the association is holding talks with the ministries.
"We will be discussing with the ministries on the proposals that we have given to the Reserve Bank of India (RBI) for short-term relief to the sector before the final bilateral trade agreement is clinched between India and the US," he said.
Exporters are already facing the impact of the initial 25% US tariffs, effective August 7, which led to drying up of US orders. The doubling of tariffs from Wednesday is expected to intensify challenges for the industry. India had exported $10 billion worth of gems and jewellery to the US in FY25.
"We have also asked for extending the payment realisation period from the current nine months to 15 months for exports made to the US and also introduction of short-term concessional loans or liquidity packages, specifically for the gem and jewellery sector," said Kirit Bhansali, chairman, GJEPC.
Bhansali said exports to the US have slipped 32% on-year to $2.12 billion during the April-July period. "With the new tariff in place from August 27, we fear exports to the US could fall over 75% impacting polished diamonds, jewellery and coloured gemstones alike," he said.
Surat, India's diamond cutting and polishing hub, employs 800,000 to a million workers.
"In the morning when I came to my workplace, I was told that my job is no more," said Rajesh Ravajibhai, manager at a diamond exporting firm in Surat. Ravajibhai declined to name the company fearing that he might not get another job elsewhere.
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