Gold Market in Turmoil: Tariffs Threaten Indian Jewellery Exports

Posted by Niilesh waghela 

Mumbai: The imposition of a 25% tariff on Indian gold jewellery exports, compounded by an additional 25% set to take effect from August 27, has sent shockwaves through the industry. 

According to Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), this steep escalation will not only make Indian gold jewellery less competitive in the US market but also jeopardize the livelihoods of thousands of skilled artisans.

Impact on Artisans and Small Workshops

The tariff hike is expected to have a devastating impact on small workshops and family-run enterprises that preserve centuries-old techniques. 

Many of these artisans are from marginalized communities, and the loss of export demand could lead to widespread job losses and destabilize local economies.

Avinash Gupta, Vice Chairman of the GJC, emphasized that the tariff shock could also pressure the Indian Rupee, making gold costlier for domestic consumers and dampening demand within India.

Urgent Call for Government Intervention

The GJC has urged the government to act swiftly and engage in trade negotiations to protect jobs, stabilize currency impact, and preserve India's global leadership in handcrafted jewellery. 

The council believes that timely intervention could mitigate the adverse effects of the tariff hike and ensure the survival of the industry.

Industry in Crisis

The gold jewellery export sector is a significant contributor to India's economy, and the tariff hike could have far-reaching consequences. 

The industry is hoping for a swift resolution to the trade tensions and a favorable outcome from the government's negotiations with the US.