The gems and jewellery sector found itself under pressure after the United States announced a sharp 50% tariff on Indian imports. The move has raised concerns across the export-driven industry, with several stocks reacting differently in Thursday's trade.
Market Performance
- Titan shares gained 1.15%, climbing to ₹3,635.20.
- Kalyan Jewellers shares were also up 1.34%.
- Senco Gold shares slipped 0.40%.
- Bluestone Jewellery fell 1.37%.
- Sky Gold and Diamond declined 1.57%.
- Shanti Gold was down 1.29%.
This contrasting performance highlighted investor caution even as select counters held firm.
Why the Tariff Matters
The US remains India's single-largest market for gems and jewellery, accounting for nearly one-third of the sector's exports. With the fresh tariff in place:
- The tariff has doubled from 25% to 50%.
- The sector is valued at $10 billion, with India supplying 40% of the US market.
- India’s annual exports stand at $28.5 billion, making this a critical development for the industry.
- Switzerland, where tariff rates are comparatively lower at 39%, may stand to gain in competitiveness.
Sector Impact
The tariff shock comes at a time when exports were already slowing. Between April and July 2025, shipments to the US dropped 32% year-on-year to $2.12 billion. With the new duty taking effect from August 27, exporters fear an even sharper decline. Projections suggest that exports to the US could fall by more than 75%, directly affecting categories such as polished diamonds, jewelry, and colored gemstones.
Summary
The latest move by the US has cast a shadow over India's gems and jewellery sector. While Titan shares and Kalyan Jewellers shares managed gains, stocks like Senco Gold and others slipped into the red. With the US being a cornerstone of India's jewellery exports, the sharp tariff hike threatens margins, jobs, and global competitiveness.
The coming weeks will be crucial as markets digest the long-term implications of this policy change and its ripple effects across one of India's most valuable export sectors.
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