Kirit Bhansali, Chairman of GJEPC, described the US tariff threat as the industry’s “biggest worry.” However, there is a glimmer of hope. A large US delegation is expected to visit India between August 19–24, and GJEPC is hopeful that ongoing negotiations may ease the situation.
“We have explained that Indian manufacturers earn just 4–5% profit, while American retailers make 60–100% margins. So any tariff would hurt US businesses as well,” Bhansali noted, referencing recent presentations made to US counterparts and industry associations.
Currently, a temporary 10% duty is in place until August 7. After that, if the proposed 25% tariff is implemented, exports are expected to decline sharply, as such a high duty would make shipments financially unviable for most exporters.
To reduce dependency on the US and China, GJEPC is opening new export routes. The Council is organising its first international jewellery show in Jeddah, Saudi Arabia, from September 11–14, seeing strong potential in that region.
India’s jewellery market is still gold-heavy, with 80–85% share, followed by 10–11% for diamonds, and a small share for gemstones. But diamond jewellery is on the rise, with De Beers projecting 12% annual growth, potentially doubling India’s diamond market by 2030.
Bhansali confirmed that domestic demand has been growing at 11–14% annually, despite gold prices nearing ₹1 lakh per 10 grams. Jewellers are adapting by offering lower-carat options like 9K and 14K jewellery, which are gaining traction among younger buyers.
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