Indian jewelry manufacturers, exporters seek new ways to beat US tariff
The Gulf states are emerging as a new hub for Indian jewelry manufacturing and export, driven by rising US tariffs on India, according to an article published in The National.
This comes as global companies increasingly seek new ways to avoid trade barriers, as the United States imposes tariffs on international trading partners.
After US President Donald Trump issued an executive order imposing an additional 25 percent tariff on India for its continued purchase of Russian oil, the total tariff on Indian imports doubled to 50 percent, making it one of the highest tariffs imposed on any US trading partner. The new tariffs are scheduled to take effect in three weeks.
Gulf countries, such as the UAE, are an attractive option for Indian companies because they face tariffs that are only 10 percent lower than the base rate set by Trump. Reports indicate promising opportunities in the Middle East.
According to a report issued by the Gem and Jewellery Export Promotion Council of India last year, Indian gold jewelry exports to Saudi Arabia increased by 26.05 percent and to Kuwait by approximately 88 percent in the second quarter of 2024. These figures confirm the growing importance of the Middle East as a major trading partner for India.
India is targeting Saudi Arabia as a major jewelry export destination, driven by the anticipated growth in the Saudi market. The value of the Kingdom’s jewelry market is expected to double from $4.6 billion in 2024 to $8.3 billion by 2030. To further strengthen this partnership, the Gem and Jewellery Export Promotion Council (GJEPC) is organizing an exhibition in Jeddah in 2025.
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