Indian diamond and jewellery exporters are considering setting up overseas units to bypass the new 50% US tariff that hit exports from India.
The US tariff took effect on 27 August and impacts all gems and jewellery shipped from India.
Industry insiders say processing some pieces abroad could avoid classification as “Made in India,” thereby escaping the heavy duty.
Exporters are also looking at alternate markets like the Middle East, Europe, and Southeast Asia to reduce dependency on the US.
Government is drawing up relief measures for labour-intensive sectors such as textiles, leather, seafood, including subsidised loans and credit guarantees.
Labour-intensive exporters are especially vulnerable due to low margins and high exposure to US demand.
Loss of US market share is a concern—once buyers shift away, regaining them could be difficult.
Policy options under consideration include revival of the Interest Equalisation Scheme.
Exporters want better access to large domestic buyers: public sector units and big private retailers to absorb some of the lost export volumes.
Overall, the strategy is two-pronged: mitigate immediate losses and build resilience through market diversification and policy support.