Mumbai (Maharashtra) [India], February 5 : The gems and jewellery industry in India expects a significant recovery following the announcement of a trade agreement with the United States. Kirit Bhansali, Chairman of the Gems and Jewellery Export Promotion Council (GJEPC), stated that the agreement, set to be finalised in March, will provide much-needed relief to a sector that has struggled with high tariffs over the last year. He noted that the US remains the most critical market for Indian exports, and the deal is expected to reverse a sharp decline in trade volumes.
"Our entire sector was worried for the past six months," Bhansali said. He explained that exports to the US had previously plummeted, with overall shipments falling by 44 per cent and exports of blue diamonds dropping by 60 per cent. With the new agreement in place, Bhansali expressed optimism for the near future. "With a new hope and expectation, we hope that we will be able to export 20-25 per cent more to the US this year," he added. He credited the Ministry of Commerce for its consistent dialogue with Washington to secure the interests of the Indian jewellery sector.
The industry has also welcomed the recent Union Budget, particularly for its focus on small businesses. Bhansali highlighted that more than 80 per cent of the people in the gems and jewellery industry work within the Micro, Small, and Medium Enterprises (MSME) sector. He noted that the budget's allocation for these businesses will directly address long-standing issues regarding manufacturing and credit.
"For the first time in the budget of Azad India, 7 lakh crore has been allocated for MSMEs," Bhansali said. He mentioned that the industry had specifically requested easier access to bank finance for these smaller units. "Many steps have been taken to increase MSMEs and to increase manufacturing. I welcome this in the budget," he stated, adding that these policies will help the sector grow within the national economy.
Regarding broader international trade, Bhansali emphasised that India is committed to strengthening ties with all friendly nations through Free Trade Agreements (FTAs). While acknowledging the massive scale of the US market, he pointed out that previous agreements with countries like the UAE and the UK have already yielded positive results. He noted that income from the UAE has grown significantly since the FTA was signed four years ago.