Kirit Bhansali states that the industry is confident that diamonds and coloured gemstones will receive full zero-duty treatment as envisaged, upon conclusion of the interim agreement
As the United States of America (USA) will now allow the zero-duty access of diamonds and coloured gemstones under the interim agreement framework, the Gem And Jewellery Export Promotion Council (GJEPC) has welcomed the move by terming it as ‘a decisive turning point that breathes new life into the sector.
“The Indian gem and jewellery industry is elated by the interim agreement framework announcing zero-duty access for diamonds and coloured gemstones to the US, especially after a difficult year in which India’s cut and polished diamond exports to our largest market fell by over 60 per cent, from USD 3.64 billion to USD 1.45 billion, due to tariff-driven loss of competitiveness,” highlighted Kirit Bhansali, Chairman, GJEPC.
Bhansali added that the diamond sector had taken a severe hit over the past year, with India’s cut and polished diamond exports to the US, the country’s largest market, declining by over 60 per cent, from USD 3.64 billion in April to December 2024 to USD 1.45 billion in April to December 2025, as tariffs eroded competitiveness.
In March 2025, GJEPC formally proposed for the inclusion of cut and polished diamonds and coloured gemstones under Annexure III at the IDMA Presidents’ Meeting in New York. This was followed by coordinated global advocacy through the World Diamond Council in May 2025, alongside representations to key US industry bodies.
Under the notified framework, duties have been reduced to 18 per cent on jewellery, which itself provides meaningful relief to exporters. “We are confident that, upon conclusion of the interim agreement, diamonds and coloured gemstones will receive full zero-duty treatment as envisaged, restoring competitiveness in our most critical market,” the chairman added.
The council has also taken up with the Centre the inclusion of laboratory-grown diamonds and synthetic gemstones under the Annexure III exemption list of US tariffs.
