India’s jewellery industry is staring down a tough road ahead as it prepares to face a 25% US tariff on imported Indian goods beginning August 7 —an escalation that comes amid already rising domestic gold import duties and surging material costs. Together, these twin challenges are squeezing the sector’s profitability, threatening export momentum, and forcing a rethink of global strategy.
The US remains India’s largest market for gem and jewellery exports, contributing over 25% of the sector’s overseas revenue. The upcoming tariff, announced as part of Washington’s broader realignment of trade policies, is expected to make Indian jewellery significantly more expensive in the US market—cutting into demand and margins alike.
“The high import duties and soaring gold costs are creating deep challenges for the jewellery business in India,” said Sonal Sawansukha, founder of Jewel Saga, one of India's leading jewellery brand based in Jaipur.
“It pushes up the cost of production and shrinks profit margins across the board—from artisans to big jewellers. In some cases, it may even incentivise grey market activity. For Indian brands to stay globally competitive, there is a pressing need to reduce duties and create an ecosystem that supports ethical sourcing, skill-building, and innovation,” adds Sawansukha.
Indian jewellers have long grappled with high input costs due to hefty duties on gold and silver imports—currently 15% for gold. With the new US tariff coming into play, exporters now face a dual cost barrier that many fear will erode India’s standing in global luxury and heritage jewellery markets.
Neha Chelani, founder of Fine Silver Jewels, confirmed that her company’s business model is already shifting. “The US accounts for a big portion of our exports, and this hike inflates costs across the value chain,” she said.
“Until there is a fair resolution, we are redirecting focus towards other international and domestic markets. Trade barriers like these are disheartening—especially when they come from the world’s largest economy. Still, I remain hopeful that the Indian government will act in our favour,” says Chelani.
For many in the sector, however, the moment is also seen as an inflection point for self-reliance and creativity.
Rishi Jain, creative director at Mirasa Jewels, believes the long-term health of the industry lies in adaptability and preserving India’s unique craftsmanship.
“Yes, pricing and margins will be hit, but this is also a call for deeper resilience,” he said adding that the industry must reimagine how it operate—invest in direct-to-consumer channels, rethink the global partnerships, and remain true to the artistry that defines Indian jewellery.
"Tariffs can’t diminish the cultural legacy embedded in every piece we create,” Jain said.
The industry exported nearly $40 billion worth of gems and jewellery in FY25, with the US taking the lion’s share. But exports have slowed in recent quarters, hurt by inflationary pressures, regulatory uncertainty, and volatile global demand.
To remain competitive, industry leaders and associations are calling on the Indian government to recalibrate its gold import policy, strengthen export incentives, and push for bilateral trade negotiations that can mitigate future shocks. While the short-term outlook remains clouded, many jewellers believe that strategic reform and innovation could help turn today’s challenges into tomorrow’s opportunities.