Gems and jewellery move quickly amid tariff row

Surat: The US's tariff increase has sparked a global stock market meltdown, heavy losses to businesses and panic among investors. Widespread protests erupted across several regions in response to the economic shocks.
India's major export-oriented sector, gems and jewellery, acted swiftly just ahead of the tariff increase to grab a sizable chunk of business, much greater than was achieved in the same period last year.
Industry experts say that before the 26% tariff on imports to US came into force on April 9, $1 billion worth of gem and jewellery products were exported from India since March 28.
Exports grew massively in the March 28 to April 4 week — as the 10% tariff came into force on April 5 — with gem and jewellery products worth $709.5 million exported, compared to $223.24 million in the same period in 2024.
"There was even a spike in exports to exploit the pre-10% tariff period. Those left out even sent their goods before the 26% tariff came into force, with around $1 billion worth of gem and jewellery products exported since March 28," said an industry expert on condition of anonymity.
The gems and jewellery export figures show that just in just four days — April 1 to 4 — ahead of the 10% tariff coming into force, $506.65 million worth of goods was exported to the US. This was 502% higher than in the corresponding period of 2024.
Interestingly, exports started picking up after March 28. In the last four days of March, $162.43 million worth of gems and jewellery was exported. In the same period last year, products worth $110.35 million had been exported.
"The ability to export gems and jewellery products in this quantity in this short period shows the strength of our industry. They had products in the pipeline that they could finish and export," said Kirit Bhansali, chairman of the Gem and Jewellery Export Promotion Council (GJEPC).
"We are sure that this will satisfy the demand of US customers for at least a month. We secured our business as well," added Bhansali.
Diamond City's cutting, polishing, and jewellery units acted quickly during the fast-changing global situation. "The massive tariff increase was unexpected, and no one had thought of its impact. These exports show the maturity of Surat's diamond and jewellery industry, that it could react smartly to new situations," said Jayanti Savaliya, regional chairman, GJEPC.