Indian diamond and jewellery exporters considering overseas units to bypass US tariffs: Industry insiders
(source : ANI) ( Photo Credit : ani)
Indian diamond and jewellery exporters are racing to beat the sting of US tariffs by setting up production units in friendly countries. This smart move could help them stay competitive in the massive American market, say industry experts. But so far, no big player has made an official announcement about shifting operations.
The US slapped a hefty 50% tariff on Indian diamonds and gems back on August 27, 2025, hitting the sector hard. “Our American market is a huge chunk of our exports,” explained Hetal Vakil Valia, former National Chairperson of the India Bullion and Jewellers Association (IBJA) women wing. Speaking on the sidelines of the 13th Delhi Jewellery & Gem Fair 2025 in New Delhi on Sunday, she added, “To dodge these tariffs, exporters are planning partial production in India and finishing the products elsewhere. That way, it’s not technically ‘made in India’ and avoids the heavy duties.”
Industry leaders are also pushing for diversification to spread the risk. Yogesh Mudras, Managing Director of Informa Markets, told that businesses are eyeing new export destinations like Europe, Southeast Asia, and the Middle East. “With the tariff risks looming, they’re rerouting jewellery through semi-processing in places like Oman, where they can complete it and ship to the US without the full tariff blow,” he said.
Prasoon Dewan, Scientific Gemologist and CEO of Divish Aurum Private Limited—which exports to Europe and beyond—stressed the importance of not putting all eggs in one basket. “Policy changes and tariff risks are part of export life; they’re not the end of the road,” he noted. Dewan urged Indian businesses to explore emerging markets, like Latin America and Eastern Europe, to build a stronger global presence. “For the new Bharat, it’s time to step out of our comfort zone. Treat every market equally with a fair, open approach,” he concluded.
The impact could be massive, especially for India’s gems and jewellery sector. According to Crisil Intelligence, micro, small, and medium enterprises (MSMEs) in diamonds, textiles, and chemicals—making up nearly 45% of total exports—face the biggest hit from these US tariffs. In diamonds alone, Surat polishers handle over 80% of India’s exports, and the US buys almost a third of those shipments, with diamonds accounting for more than half of the total gems and jewellery exports. As tensions rise, exporters are adapting fast to keep the sparkle alive.
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