India-US Trade Deal: Gems, Jewellery Sector Anticipate Export Boost As US Tariffs Drop To 18%

The Indian gems and jewellery industry welcomed the announcement of the India-US trade deal and the reduction of US tariffs on Indian imports. In a social media post, US President Mr Donald Trump announced the much-awaited India-US trade agreement. The deal was reportedly finalised following a high-level telephone conversation between Indian Prime Minister Mr Narendra Modi and the US President.

Following this announcement, the Indian stock markets as well as the Indian currency jumped in excitement. Most stock indices rose by more than 2% on Tuesday, 3 February 2026, while the Indian National Rupee (INR) gained 1.36% against the US Dollar to close at 90.26 per dollar.

US Tariffs On Indian Exports Cut To 18%

As part of the newly announced India-US trade deal, New Delhi has agreed to halt its purchase of Russian oil. In return, Washington has agreed to reduce US tariffs on Indian imports to 18%, which was as high as 50% in August 2025.

As per the Gem and Jewellery Export Promotion Council (GJEPC), the reduction of US tariffs offers a vital relief to India’s gems and jewellery sector, which has been under immense pressure for more than six months.

The GJEPC chairman, Mr Kirit Bhansali, said, “Tariff cuts to 18% will lower costs for US importers, provide immense relief to diamond jewellery manufacturers, boost the competitiveness of Indian diamond jewellery, revive demand, and stabilise operations.”

He further added, “GJEPC is optimistic that, based on India signing the trade deal, loose diamonds and coloured gemstones from the country will get the benefit of zero duty imports in the USA as part of the US reciprocal tariff list, which will provide much-needed support for diamond exports.”

The chairman of the All India Gems & Jewellery Domestic Council, Mr Rajesh Rokde, also opined that the reduction of US tariffs on Indian imports marks a pivotal moment for India’s gems and jewellery industry.

"By lowering barriers in one of the largest consumer markets, our exporters will gain a stronger foothold, while our artisans will see their creations reach new audiences," he said.

Why Is This Announcement So Important?

The announcement about the reduction in US tariffs on Indian imports holds immense significance for India’s gems and jewellery sector. The United States of America is the biggest market for Indian players in this industry. It accounts for 31% of total gems and jewellery exports from India, valued at approximately 9.23 billion US Dollars in FY 2024-25.

However, after the US President raised tariffs on Indian imports in August 2025, import duties on gems and jewellery surged from 5%-7% to 55%-57%. This led to a significant decline in Indian exporters’ profit margins, liquidity, and working capital.

Now, the experts believe the recently announced relaxation of tariffs could restore confidence among Indian exporters. Even the American buyers are expected to benefit from this move, which could lead to a revival of the Indian gems and jewellery sector.

Furthermore, the easing of US tariffs on Indian imports could act as a catalyst for the growth of several Indian industries, including textiles and automobiles.

Sources:

Financial Express

The Economic Times

LiveMint

NDTV Profit