Indian Jewellery Industry Faces Risk of Job Losses Amidst New US Tariffs; Over 1 Lakh Jobs At Risk

India's vibrant gem and jewellery industry, a significant pillar of the nation's export economy, is bracing for a severe downturn as the United States prepares to implement a steep 25 percent tariff on Indian imports. This fresh blow, announced by US President Donald Trump and set to take effect from August 1, threatens to jeopardize over one lakh jobs, according to leading industry representatives.

Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, expressed profound concern in a conversation with ANI. He highlighted that the handmade jewellery export segment, in particular, could be "hit hard," with these intricate products potentially becoming unviable for sale or acceptance in the US market. Rokde drew a stark comparison to a previous instance when a 10 percent US tariff reportedly led to approximately 50,000 workers in the industry facing unemployment. "If the same pattern follows with the new tariff hike, more than one lakh people could be impacted this time. Such an outcome would be very unfortunate for the jewellery industry," Rokde lamented.

The timing of these increased tariffs, jumping from 10 percent to 25 percent, adds to the industry's woes. "This is very sad; the tariffs have been increased from 10 per cent to 25 per cent, which will be implemented from August 1," Rokde stated.

Despite the immediate apprehension, Rokde also offered a nuanced perspective, suggesting that the tariffs might ultimately inflict more damage on the American market than on India. He underscored India's global reach in jewellery exports, noting the country's past success in diversifying its markets. "Jewellery from India is exported across the world. In such cases, India had earlier found alternate markets like the European Union and the Middle East," he explained.
However, the scale of the US market cannot be understated. Data from the Ministry of Commerce reveals that the United States stands as one of the largest destinations for Indian gems and jewellery, having imported products worth USD 9.9 billion in the last financial year alone.

Colin Shah, managing director of Kama Jewellery, echoed the industry's deep concern over the impending tariffs. "With the US being one of the key export destinations, this will severely impact sectors like gems and jewellery that are heavily dependent on exports," Shah emphasized. He further pointed out that the industry is already navigating challenging waters, having grappled with prolonged geopolitical tensions stemming from the Russia-Ukraine conflict and unrest in the Middle East for over two years.

Shah also linked the current uncertainty to the political landscape in the US. "With the return of Trump to power, his tariff threats have caused uncertainty in Indian markets. Going ahead, we expect trade activities with the US to remain muted," he predicted.

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