The India-US trade deal is hailed as very favorable, particularly for the diamond industry. Avinash Gupta, Vice Chairman of All India Gem and Jewellery Domestic Council (GJC), highlighted the significant advantage of moving diamonds and gemstones to a zero per cent tariff under Section 3. This move is considered a major advancement for the industry.
Gupta emphasized that this trade agreement will play a crucial role in supporting India’s cutting and polishing sector, which previously faced challenges due to US tariffs. He expressed optimism about the deal’s potential to enhance the ‘Make in India’ initiative by facilitating skill transfer across various industries, including recent trade agreements with the EU.
Regarding the gems and jewellery industry, Gupta noted that while diamonds and gemstones currently enjoy zero per cent duty, jewellery itself remains excluded from this provision. He urged the government to consider including jewellery under Section 3 in future negotiations, citing the substantial benefits such a move would bring to the sector.
As manufacturing hubs in India continue to evolve, Gupta highlighted the positive outcomes already visible. He drew parallels with the transformation witnessed in the electronics and automobile sectors, expressing confidence that the gems and jewellery industry is following a similar trajectory towards becoming a significant exporter.
Gupta also mentioned the government’s ambitious goal of making India a leading exporter by 2047 and establishing the country as a global production hub for jewellery. He expressed belief in Prime Minister Narendra Modi’s vision, foreseeing its realization by the set target year.
