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Gems & Diamond – major relief for the industry

ICICIdirect Research 19 Feb 2026 DISCLAIMER

Under the US-India interim trade agreement the tariff on cut and polished diamonds (CPDs) could go back to zero subject to the successful conclusion of the interim agreement between both sides. Tariffs to come down to 18% for India after an executive order has been issued which could be earlier than March. Subject to the successful conclusion of the Interim Agreement, will remove the reciprocal tariff on a wide range of goods including gems and diamonds.
India majorly exports cut and polished diamonds, lab-grown synthetic diamonds, coloured gemstones, synthetic stone, plain and studded gold jewellery, silver and platinum jewellery, imitation jewellery and articles of gold, silver and others.
India’s gem and jewellery exports to the United States witnessed a sharp contraction during April–December 2025, declining 44.42% year-on-year to US$ 3.86 billion, compared to US$ 6.95 billion in the corresponding period last year. In December 2025, exports to the US declined by 50.44% year-on-year, reflecting the continued impact of tariff-related pressures and subdued discretionary demand.
View: If tariff rates on gems and jewellery are reduced to zero, it will bring major relief to India’s gems and jewellery sector, which counts the US as its largest export market, contributing about 30% of industry sales. Key beneficiaries would be gems and jewellery exporters such as Renaissance Global and Goldiam International.

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