GJEPC Appeals to Finance Minister for Urgent Relief as U.S. Tariffs Pressure Gem and Jewellery Sector

With mounting pressure from a steep 50% tariff imposed by the United States on Indian gem and jewellery exports, the Gem and Jewellery Export Promotion Council (GJEPC) has called on Finance Minister Nirmala Sitharaman to step in with immediate relief measures to safeguard the struggling sector.

A GJEPC delegation met with the Finance Minister on Wednesday, urging the government to introduce temporary but critical support mechanisms to help exporters navigate the financial strain while India and the U.S. work towards a long-term trade resolution.

In a statement, GJEPC acknowledged the resumption of trade negotiations between India and the U.S. as a positive development but cautioned that the process may take time to bear fruit.

“While we are encouraged by the renewed dialogue between India and the U.S., exporters cannot afford to wait. The current tariff has placed immense financial stress on the sector, and urgent measures are needed to protect jobs and keep operations running,” said Kirit Bhansali, Chairman of GJEPC.

Among the reliefs sought are:

• Permission for Special Economic Zone (SEZ) units to carry out reverse job work and Domestic Tariff Area (DTA) sales, to keep factories operational and artisans employed.
• Extension of export obligation timelines for shipments to the U.S.
• An interest moratorium on packing credit and working capital loans to ease cash flow challenges.
• Broader liquidity support for exporters facing tariff-related disruptions.

The Council also advocated for the India Jewellery Park to be officially recognised as an industrial park and included in the Harmonised Master List of Infrastructure. Such recognition would enable the park to access benefits and incentives available to industrial infrastructure projects.

The gem and jewellery sector, a significant contributor to India’s exports and employment, has been reeling under pressure since the U.S. imposed the sharp tariff hike. Industry stakeholders fear prolonged stress could lead to widespread job losses and loss of global market share if timely support is not extended.

GJEPC's appeal to the Finance Minister underscores the urgency of policy intervention as the sector grapples with one of its most challenging international trade environments in recent years.

(Source: PTI)