Jaipur Jewellery Exports Stop as US Tariffs Hit Hard, Industry Faces Crisis

50% US Tariff Causes Jewellery Orders to Dry Up, Putting Jaipur’s Gem Trade and Livelihoods at Risk

US Tariffs Bring Jewellery Exports from Jaipur to a Standstill

Jaipur’s iconic gems and jewellery industry, a cornerstone of the city’s economy and a top foreign exchange earner, is facing a severe crisis. The 50% tariff imposed by the US government on Indian jewellery imports has brought export orders to a complete halt, leaving artisans and traders worried about the future.

Traditional Jewellery Market Feels the Impact

The famous Johari Bazaar and narrow lanes like Gopal ji ka rasta—known for exquisite Kundan polki and meenakari jewellery—have turned quiet as orders from the US dry up.
Sudhir Kasliwal, from the renowned Gem Palace family—jewellers to Jaipur’s royal family and global celebrities—reports that export orders to the US have stopped.
With 70% of foreign tourists at the Gem Palace being Americans, the tariff is expected to reduce local sales as well, as buyers face higher duties on jewellery brought back home.

Economic Scale of the Crisis

Rajasthan’s gems and jewellery exports total around Rs 18,000 crore, with the US accounting for Rs 3,200 crore annually.
Alok Sonkhiya, President of the Jaipur Jewellers Association, notes the absence of Christmas orders and cancellation of existing ones.
Some consignments have even reached US ports but remain unclaimed by buyers, signaling deep uncertainty.

Coloured Gemstones and Skilled Labour at Risk

Jaipur’s skilled artisans are also vital in cutting and polishing coloured stones like emeralds, tanzanites, rubylite, morganite, and aquamarine, which form 20% of the export market.
The industry supports up to 3 lakh skilled and unskilled workers whose livelihoods are now threatened.
DP Khandelwal of the Gems and Jewellery Export Promotion Council emphasizes the significance of Jaipur’s gemstone craftsmanship, highlighting the rising popularity of tanzanite in the US.

Personal Stories: Impact on Workers

Workers like Girish, who migrated to Jaipur for jewellery export jobs, face uncertainty. “If orders drop and work disappears, we could be out of jobs. We don’t have other skills to fall back on. How will our families survive?”

Calls for Government Support

Industry leaders urge the government to introduce relief measures similar to those during the COVID-19 pandemic.
Suggestions include loan repayment relief, interest subsidies, and extended moratoriums to help businesses weather the downturn.
Finding new export markets will be challenging, making immediate support critical.

Summary

US imposes 50% tariff on Indian jewellery imports, halting Jaipur’s exports
Traditional markets like Johari Bazaar see sharp decline in orders
US accounts for Rs 3,200 crore of Rajasthan’s jewellery exports annually
Thousands of workers face potential job losses
Industry seeks urgent government intervention for financial relief

The steep US tariffs have cast a shadow over Jaipur’s vibrant jewellery industry, threatening the livelihoods of thousands and risking a decline in a centuries-old craft. Without timely government support and new market opportunities, this economic cornerstone faces an uncertain future. The resilience of Jaipur’s artisans and exporters will be tested as they navigate these challenging times.