India’s Exports Stable Ahead of US Tariff Deal

India’s gem and jewelry exports showed little change between April 2025 and January 2026, as increases in key markets offset a decline in shipments to the US.

Exports declined 0.6% compared to the same period the previous year in US dollar terms, but rose 3.7% in Indian rupees, the Gem and Jewellery Export Promotion Council (GJEPC) said last week.

Supply to the US declined 45% amid elevated tariffs. However, higher shipments to other destinations — including a rise of 24% to the United Arab Emirates, 34% to Hong Kong, and 36% each to Australia and France — offset the drop. Belgium, Thailand and Israel registered double-digit growth.

The stabilization came ahead of a US-India trade deal that removed a 25% punitive levy on Indian products, leaving just a 25% reciprocal tariff plus any customs duties that existed before April 2025. Once finalized and in effect, the agreement is set to reduce that tariff to 18% on most products, including jewelry, and abolish duties on loose diamonds.

“The announcement of the framework for India–US trade deal has brought much-needed relief, with the revised 18% tariff on jewelry and zero duty on diamonds and colored gemstones, will place India in a structurally superior position over key competitors — across diamonds, colored gemstones and studded gold jewelry,” said GJEPC chairman Kirit Bhansali. “This advantage is expected to help Indian exporters regain lost ground in the US market and recreate trade, potentially adding up to $3 billion in the near term.”

Image: Polished diamonds. (Shutterstock)