Gems and Jewellery Units Fear Sharp Drop in Business

A 50% tariff in the US market could seriously jeopardize the gems and jewellery industry and result in massive job losses, industry executives said.

- KRISHNA BAROT

Calling August 6 a "black day" for the sector, the Gems and Jewellery Export Promotion Council's (GJEPC) chairman, Kirit Bhansali, said, "Delegates from Washington are expected to arrive in India on August 25 (for talks on the bilateral trade agreement) and we hope that this brings down the tariff rate; otherwise, there is little hope for the sector's US businesses."

India's annual gems and jewellery exports to the US amount to $12 billion, a fourth of overall exports by the industry.

Bhansali said that while a 50% tariff leaves little room for profitability, even a 25% tariff that is to take effect from August 7 could result in a drastic drop in exports, given the industry's already-slim profit margins.