If implemented, the decision will come as a big relief to the Indian gems and jewelery sector as the US accounts for around 30 percent of the sector’s sales.
The joint statement comes in the wake of the US commitment to reduce reciprocal tariffs on Indian exports from 50 to 18 percent.
“Subject to the successful completion of the Interim Agreement, the US will eliminate the reciprocal tariff on a broad range of goods identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 dated September 5, 2025 (Modifying the Scope of Reciprocal Tariffs and Establishing Procedures for Implementing Trade and Security Agreements), as amended, including generic pharmaceuticals, gemstones and diamonds, and aircraft parts,” the statement said.
India’s gem and jewelery exports to the United States saw a sharp contraction during April-December 2025, declining 44 percent year-on-year to $3.86 billion from $6.95 billion in the same period last year.
Last December, exports to the US halved year-on-year due to strict tariffs.
India is the world’s largest exporter of cut and polished diamonds and considers the US its most important market. Besides gold jewelry, India exports lab-grown synthetic diamonds, colored gemstones, synthetic stone, plain and imitation jewelry and items made of gold, silver and others.
According to government data, India’s diamond exports to the US stood at $5.93 billion in 2023 and fell to $4.88 billion in 2024. The decline further accelerated in 2025, with exports falling to just $2.42 billion through September last year.
Colin Shah, MD, Kama Jewelry said the announcement of zero tariff on gemstones and diamonds will be momentous and greatly welcomed by the Indian gems and jewelery sector.
India, the global diamond processing hub, was hit hard by the trade tariffs, where trade in cut and polished diamonds had fallen by more than 60 percent, he added.
The import duty waiver will help revive exports and restore spark in business, he said.
Published on February 7, 2026
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