Is Zero US Tariff on Diamonds and Gemstones a Major Step Forward?
Synopsis
The India-US trade agreement could revolutionize the diamond industry by eliminating tariffs on diamonds and gemstones. Avinash Gupta of GJC highlights this pivotal change and its potential impact on India's manufacturing landscape. Will this agreement also extend to jewellery, offering even greater benefits? Read on to explore the future of India's gems and jewellery sector.
Key Takeaways
Zero percent tariff on diamonds and gemstones is a major advancement.
This deal supports India's cutting and polishing sector.
Jewellery is yet to be included under the zero duty bracket.
The government aims to position India as a global jewellery manufacturing hub.
Prime Minister Modi's vision aims for complete export capability by 2047.
Mumbai, Feb 10 (NationPress) The recent trade agreement between India and the US is promising, with one of its most significant outcomes being that diamonds and gemstones will now be subject to a zero percent tariff under Section 3. This marks a substantial advancement for the diamond sector, according to Avinash Gupta, the Vice Chairman of the All India Gem and Jewellery Domestic Council (GJC).
In an interview with IANS, Gupta emphasized that this development will provide crucial support to India's cutting and polishing industry, which has historically seen 9 out of 10 diamonds cut in the country. Previously imposed US tariffs had posed challenges for many artisans in Surat.
“This trade agreement is all-encompassing and I am confident it will yield significant advantages for the ‘Make in India’ initiative. The recent trade agreements India has established, not only with the US but also with the EU, will have a profound effect,” he stated.
He pointed out that the zero percent duty currently applies exclusively to diamonds and gemstones.
“The jewellery segment, which is vast, has not yet been included in the zero percent duty category. I urge the government to consider incorporating jewellery under Section 3 in future negotiations. Such a move would provide immense benefits,” Gupta conveyed to IANS.
As manufacturing hubs evolve in India, the positive effects are already becoming evident.
“In the past, when electronics manufacturing began in India, we were predominantly a net importer; today, we have transformed into an exporter. A similar trajectory is being observed in the automobile sector and now in the gems and jewellery industry,” Gupta remarked.
The government has ambitious goals, aiming to transform India into a complete exporting nation by 2047 and to establish it as a global production center for jewellery.
“I believe Prime Minister Narendra Modi's vision will be realized by 2047,” Gupta concluded.
Point of View
This trade agreement between India and the US is a strategic move that can potentially reshape the gems and jewellery industry. While the zero percent tariff on diamonds and gemstones is commendable, the call for including jewellery is crucial. It reflects the ongoing efforts to enhance India's manufacturing capabilities and export potential.
NationPress
30 Jun 2026
Frequently Asked Questions
What does the India-US trade deal entail?
The India-US trade deal includes the elimination of tariffs on diamonds and gemstones, significantly benefiting the diamond industry.
How will the zero percent tariff impact the diamond industry?
The zero percent tariff will support India's cutting and polishing industry, which has faced challenges due to previous US tariffs.
What are the future prospects for jewellery under this agreement?
Currently, jewellery is not included in the zero percent duty category, but there are appeals for it to be added in future negotiations.
What are the government's goals for India's export capacity?
The government aims to transform India into a complete exporting nation by 2047, establishing it as a global hub for jewellery production.
Who is Avinash Gupta?
Avinash Gupta is the Vice Chairman of the All India Gem and Jewellery Domestic Council (GJC) and a key voice in the diamond industry.
