- Worried murmurs filled Jaipur's jewellery market as US tariffs of 50 per cent took effect
- Jaipur exports Rs 3,200 crore of finished jewellery and coloured stones annually to the US
- Export orders to the US have stopped, with buyers cancelling and not collecting shipments
Worried murmurs filled the air of the winding by-lanes of Jaipur's jewellery market as the 50 per cent tariff of US President Donald Trump came into force on Wednesday. The whole area, from the famous Johari bazaar or market of jewel smiths -- where traditional jewellers make the most exquisite ornaments, the Kundan polki sets embellished with meenakari, to the narrow winding lane of the Gopal ji ka rasta, where merchants sit selling beads, baubles, coloured gemstones and precious stones - is buzzing.
Gems and jewellery are the cornerstone of Jaipur's economy along with tourism. It is the biggest earner of foreign exchange for the city, but with the US hiking tariff, there is concern that this thriving industry could lose its sheen.
Sudhir Kasliwal's family - owners of the Gem Palace -- have been personal jewellers to the royal family of Jaipur for generations. The famous Rajmata of Jaipur Gayatri Devi was their royal patron and over the years Gem Palace has built a reputation for its timeless craftsmanship and heritage jewellery. From Oprah Winfrey to the former first lady of the United States Jacqueline Kennedy Onassis, international celebrities have visited the Gem Palace atelier.
But the US tariffs could hit traditional businesses like these.
"Our export orders to the United States are at a complete standstill. In fact, buyers are not going ahead with more order," said Sudhir Kasliwal.
"Of the foreign tourists who visit our store, 70 per cent are Americans and the tariffs will definitely hit our sales in Jaipur as well. The American visitor will not buy as they will have to pay hefty duty when they take back home jewellery bought in India," said Mr Kasliwal, the eldest son of the Kasliwal family who have been in the business for nine generations.
The total export of gems and jewellery from Rajasthan is to the tune of Rs 18,000 crore. The US is the single biggest market for the merchants of Jaipur. Each year Jaipur exports finished jewellery and coloured gemstones to the US worth around Rs 3,200 crore.
Alok Sonkhiya, president of the Jaipur Jewellers Association and a leading exporter, said, "By this time we would have been receiving orders for Christmas, but not a single order is forthcoming".
"We are still trying to estimate the losses that the industry has been hit by with cancellations coming in. In fact, some exporters have said their consignments have reached the US, but the customers are not picking them up. We will see a cascading effect of this on the jewellery business in the months to come," he added.
The cutting and polishing of coloured gemstones is also an important component of the export trade from Jaipur.
Coloured stones like emeralds, tanzanites, rubylite, morganite and aquamarine are some of the favourites cut, polished and exported from Rajasthan and used in finished jewellery products.
The industry employs upto 3 lakh skilled and unskilled labourers whose incomes could be affected.
DP Khandelwal, convenor of Colour Stone Panel and Gems and Jewellery Export Promotion Council, said tanzanite had become very popular as a stone in the US market, especially after the famous movie Titanic.
"Jaipur is known for its craftsmanship in cutting and polishing stones and export of coloured stones and occupies about 20 per cent of the market. We have opened training centres to teach artisans the art of cutting stones, that has thrived in Jaipur for centuries. But if production goes down, naturally jobs will also be at stake," he said.
Girish, who moved from Uttar Pradesh to Jaipur nine years ago to work in a jewellery export unit, said he is worried.
"I don't understand much of what is going on, but one thing is certain -- if orders are less and there is less work, we could be out of a job. We are not fit to do anything else. How will our families survive?" he said.
Alok Sonkhiya, the president of the Jaipur Jewellers Association, said it will be difficult to find new markets. The government should step in and help cushion this impact by giving relief in loan repayments, subsidising interest and allowing a longer moratorium of dues as they did during the Covid pandemic to support the economy, he said.
