US-India commerce deal rekindles hope for diamond manufacturing items | Surat Information – The Occasions of India

Surat: The proposed US-India commerce deal has rekindled hopes of a turnaround for the diamond manufacturing business in Surat, the world’s largest slicing and sharpening hub, with the sector anticipating zero obligation on free diamonds below the settlement, business sources stated.The business has been grappling with a number of headwinds, together with falling diamond costs and restrictions linked to Russian-mined tough. Whereas a number of challenges stay, stakeholders stated the commerce deal has provided readability on a minimum of one key concern.

The Gem and Jewelry Export Promotion Council (GJEPC) described the settlement as a landmark growth and a serious reduction for the sector.The US is India’s largest export marketplace for gems and jewelry, accounting for 31% — about $9.23 billion — of whole exports in FY 2024-25. Nevertheless, reciprocal US tariffs launched in 2025 severely disrupted commerce. Duties on polished diamonds and colored gem stones rose from 0% to 10% in April and additional to 50% by August, tightening liquidity and squeezing margins. Jewelry duties additionally climbed steeply from 5-7% to 55-57%.Whereas exporters rushed to ship important volumes earlier than the upper tariff charges kicked in, uncertainty over coverage adjustments stored the business on edge.Exports to the US plunged 44% between April and Dec 2025, dropping from $8.6 billion to $3.8 billion. Minimize and polished diamond exports fell over 60%, from $3.6 billion to $1.4 billion. Studded gold jewelry exports declined 24% from $2.1 billion to $1.5 billion, whereas plain gold jewelry shipments fell 28% from $258 million to $184 million.Business gamers stated a tariff lower would cut back prices for US importers and enhance the competitiveness of Indian diamond jewelry in its largest market, serving to revive demand and stabilise operations.“GJEPC is optimistic that, based mostly on India signing the commerce deal, free diamonds and colored gem stones from India will get the good thing about zero-duty imports within the USA, vide Annexure 3 of the US reciprocal tariff record, offering much-needed help for diamond exports. It will improve commerce flows, rebuild confidence, and ship a powerful sector-wide enhance,” stated Kirit Bhansali, chairman, GJEPC.