India’s gem and jewellery sector, a cornerstone of the nation’s export economy, faces unprecedented challenges due to escalating US tariffs and evolving global trade dynamics. GJEPC has emerged as the pivotal force spearheading the industry’s response, leveraging high-level engagements with various top officials from the Government of India, and global bodies such as the World Diamond Council (WDC), the International Diamond Manufacturers Association (IDMA) and De Beers. Through a series of strategic meetings with key stakeholders-including the Commerce Ministry, the Principal Secretary to the Prime Minister, and global industry leaders, the GJEPC has articulated a clear roadmap to safeguard India’s $30 billion gem and jewellery export industry. This report examines the Council’s multifaceted advocacy efforts, detailing its policy recommendations, international collaborations, and the critical role of government-industry synergy in navigating this complex trade landscape.
The Gem & Jewellery Export Promotion Council (GJEPC) is actively spearheading the charge to address the Indian gem and jewellery industry’s significant concerns regarding potential US reciprocal tariffs, engaging in high-level discussions with the Government of India and key international industry players. Facing escalating trade tensions and a looming deadline, the Council has presented a clear set of demands aimed at safeguarding the sector’s interests, particularly within the framework of a proposed India-US Bilateral Trade Agreement (BTA).
Recognising the urgency, a high-level GJEPC delegation secured crucial meetings with top government officials. GJEPC was part of the review meeting of Export Promotion Councils (EPCs) and Industry Associations with Hon’ble Minister of Commerce and Industry, Shri Piyush Goyal, held on 9th April 2025. During the meeting, GJEPC leadership, Shri Anoop Mehta, Co-convener of Diamond Panel, GJEPC, and President, Bharat Diamond Bourse; and Shri Sabyasachi Ray, Executive Director, GJEPC, conveyed the implications of the proposed Trump tariff hikes on the Indian gem and jewellery sector.
On April 14th 2025, GJEPC Chairman Kirit Bhansali, accompanied by Vice Chairman Shaunak Parikh, Bharat Diamond Bourse (BDB) President Anoop Mehta, Seepz Gem & Jewellery Manufacturers’ Association (SGJMA) President Adil Kotwal, and GJEPC Executive Director Sabyasachi Ray, met with Shri Shaktikanta Das, the Hon’ble Principal Secretary to the Prime Minister.
During this pivotal meeting at the PMO in New Delhi, the delegation formally presented the industry’s critical requirements under the potential BTA.
The GJEPC’s Key Asks from the Government of India amid the imposition of US tariffs include:
- Inclusion in Annexure II: Requesting that diamonds and coloured gemstones be added to Annexure II of the US Government’s Ad Valorem Reciprocal Tariff Notification to shield polished diamonds from increased duties.
- Duty Cap: Recommending a cap on total US import duties for Indian jewellery at 10%, encompassing any ad valorem component.
- Reciprocal Concessions: Proposing that the US receive reciprocal concessions for gold and silver bullion imports into India, mirroring those granted to the UAE under the Comprehensive Economic Partnership Agreement (CEPA).
- Balanced Tariff Offer: Indicating India’s willingness to offer duty concessions of 6-10% on US jewellery exports to India via the BTA.
- Fast-Tracking Relief: Insisting that gem and jewellery duty relief be prioritised under the Early Harvest component of the BTA, citing a critical three-month grace period before potential reciprocal tariffs could severely impact, or even halt, industry operations.
Shri Shaktikanta Das acknowledged the industry’s concerns and assured the delegation of the Government’s support in addressing the matter during discussions with the US Government.
Further reinforcing this dialogue, another GJEPC delegation, again led by Chairman Bhansali and including Vice Chairman Parikh, SGJMA President Kotwal, and ED Ray, met with Shri Rajesh Agarwal, Additional Secretary, Ministry of Commerce and Industry, and Mr. R. Arulanandan, Director, Department of Commerce. This meeting focused specifically on deliberating the potential impact of the US tariffs and exploring mitigation strategies.
The continued engagement was also highlighted by the visit of Shri Siddharth Mahajan, Joint Secretary, Department of Commerce, to the GJEPC Head Office at the Bharat Diamond Bourse on April 22nd, where he was briefed by the Council’s leadership.
Leveraging International Partnerships
GJEPC extended its advocacy efforts internationally. On April 29th, 2025, Chairman Bhansali and ED Ray joined the Hon’ble Minister of Commerce and Industry, Shri Piyush Goyal, for a strategic meeting with the leadership of De Beers in London, including CEO Al Cook. Minister Goyal expressed confidence in the ongoing negotiations with the US concerning these reciprocal tariffs during the meeting.
Through these concerted efforts – direct lobbying with the highest levels of the Indian government and strategic engagement with global diamond leaders like De Beers – GJEPC is spearheading the Indian gem and jewellery industry’s response to the significant challenge posed by potential US tariffs.
The Council’s advocacy underscores the need for swift action within the India-US trade dialogue, particularly seeking relief under the Early Harvest provisions of the proposed BTA, to prevent disruption and ensure the continued growth and stability of this vital export sector. The strong government-industry collaboration demonstrated in these meetings is deemed essential for navigating these global trade complexities.