Trump tariffs cast a cloud over Jaipur, India's gemstone capital

Over-reliance on the US and other Western markets has left its jewellers vulnerable.

- Nirmala Ganapathy India Bureau Chief

Artisans at work on gemstones at Lunawat Gems in Jaipur, Rajasthan. In recent months, the livelihoods of thousands who depend on the jewellery trade have come under threat. In August, the US – India’s largest export market for gems and jewellery – imposed a .25 per cent tariff that was later doubled to 50 per cent as punishment for India importing oil from Russia.

(NIRMALA GANAPATHY)

Inside a bright, bustling room in a factory in the city of Jaipur, Rajasthan, Mr Neeraj Lunawat held out a piece of rubellite, its deep red glinting faintly under the fluorescent lamp.

"Do you see the imperfections?" he asked.

To my untrained eye, the gemstone looked flawless.

But Mr Lunawat, 58, pointed out a line in it - foreign substances like another mineral crystal, liquid or gas can often get trapped inside a gemstone as it forms.

He explained that jewellers like himself have to get the stone cut in such a way that the colour and shine of the stone would absorb the trapped substances.

For generations, Jaipur has been known for the unmatched expertise of jewellers and artisans who can transform unpolished rocks into dazzling emeralds, rubies and other coloured gems.

But in recent months, the livelihoods of thousands who depend on the jewellery trade have come under threat.

In August, the US - India's largest export market for gems and jewellery - imposed a 25 per cent tariff that was later doubled to 50 per cent as punishment for India importing oil from Russia.

The impact was immediate: Orders were halted, shipments were put on hold, and buyers were left wondering if they should start developing alternative markets.

The timing of these developments was particularly inopportune because almost half of all jewellery sales in the US occur during the Christmas quarter, a period that jewellers look forward to.