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Shares of leading jewellery retailers Kalyan Jewellers and Titan rose by up to 1.5% on Wednesday, following reports that Indian gem and jewellery exporters are seeking urgent government support to weather a steep hike in U.S. import tariffs.
The sector is reeling after the United States raised tariffs on Indian gems and jewellery to 50%, intensifying pressure on an industry already hit by a 25% duty imposed earlier this month. In response, exporters—represented by the Gem & Jewellery Export Promotion Council (GJEPC)—met with top officials from the commerce and finance ministries to request a comprehensive bailout package.
According to some media reports, the GJEPC is urging the government to offer financial support to help exporters tap into alternative markets, extend pre-shipment financing, and allow Special Economic Zones (SEZs) to manufacture jewellery for domestic sale. The council is also seeking a moratorium on interest payments for working capital loans from August 1, 2025, to January 1, 2026.
“We are engaging with ministries on proposals already submitted to the Reserve Bank of India, seeking temporary relief until a trade resolution is reached with the U.S.,” said Sabyasachi Ray, Executive Director of the GJEPC.
The export-oriented industry, which shipped $10 billion worth of gems and jewellery to the U.S. in FY24, has already seen a sharp decline. Exports to the U.S. fell 32% year-on-year to $2.12 billion in the April–July period of FY26. GJEPC Chairman Kirit Bhansali warned that with the new tariffs in effect from August 27, exports to the U.S. could plunge by over 75%, hitting key segments including polished diamonds, coloured gemstones, and finished jewellery.
Among the council's additional demands is an extension of the payment realization period for U.S. exports—from nine months to 15 months—and concessional loans tailored to exporters facing immediate liquidity challenges.
The ripple effects are already visible in Surat, Gujarat—India’s diamond processing hub—where several small-scale cutting and polishing units have reportedly begun layoffs. The city’s diamond industry employs nearly 1 million workers.
Meanwhile, the broader consumer durable sector also saw a bump on August 28. Shares of Blue Star rose 2%, while Voltas and Amber Enterprises were up around 1% each, reflecting cautious optimism in select sectors despite rising global trade tensions.
