The second most important relief for the sector is the possibility of a much lower tariff regime for shipments to the US. While exporters are still waiting for the final notification and detailed fine print, Bhansali said the industry is hoping that loose diamonds and jewellery could eventually move to zero duty. Even if that does not happen immediately, the sector believes the outcome will still be supportive. “with 18% also, the entire sector is in very much relief,” he said.
Another key positive highlighted by Bhansali is the strong expectation of a rebound in US demand. The industry believes inventories in the US are currently at very low levels, which should translate into higher orders in the coming quarters. Based on this, exporters are confident that the recovery will be meaningful and sustained, with 2026 seen as a particularly strong year for the sector.Also Read:
Gold, silver price fall brings relief to jewellery trade after ‘unsustainable’ rally: GJEPC
The interview also underlined how export diversification helped soften the blow from the US slowdown. Over the past year, Bhansali said Indian exporters have expanded business with markets such as the UAE, the UK, Australia and the European Union. Despite the sharp fall in the US, the industry managed to hold on to its export momentum and maintain its overall export target of about $19 billion until November.
Finally, Bhansali said the new trade environment is expected to accelerate retail expansion in the United States. Several Indian jewellery companies are already operating or opening stores in the US, and exporters believe the easing of trade conditions will encourage more retailers to enter the market, further supporting demand once consumer buying picks up.
Also Read: US trade deal done, fund managers now watch earnings and foreign flows
For the entire interview, watch the accompanying video
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