Indian diamond and jewellery exporters considering overseas units to bypass US tariffs

The Indian diamond and jewellery exporters are looking to set up production units in friendly countries to avoid the impact of US tariffs and maintain competitiveness in the American market, according to industry insiders. However, despite the anticipation of industry insiders, no significant player has officially announced such a move so far.

The Indian diamond and jewellery exporters are looking to set up production units in friendly countries to avoid the impact of US tariffs and maintain competitiveness in the American market, according to industry insiders.

However, despite the anticipation of industry insiders, no significant player has officially announced such a move so far. The US currently has a 50 per cent tariff on Indian diamonds and gems, which took effect on August 27, 2025.

While the industry players are also trying to understand that there’s risk at this moment,  they are trying to look at different markets to export, especially markets like Europe, Southeast Asia, and the Middle East. They are also trying to reroute the jewellery by semi-processing and then going to countries like Oman, where they can process it fully and then export to the US.

On the need to diversify trade, Prasoon Dewan, Scientific Gemologist and CEO of Divish Aurum Private Limited, which exports to markets in Europe and other geographies, said, “Policy shifts create tensions; tariff risks are always an integral part of any export business. This should never be seen as the end of the road. I think it is wiser for every business house to have multiple and alternative market avenues into different markets.”

Encouraging businesses to think beyond traditional markets, Dewan added, “It’s important for the new Bharat to step out of its comfort zone and explore emerging markets. Latin American countries, for instance, may offer a warm entry for our goods, alongside untapped potential in Eastern Europe.”

He concluded by urging a balanced and inclusive global trade outlook: “Every market should be treated equally. We must venture into all potential regions with a fair and open trade approach.