US midterm elections: Gems & jewellery industry keeps its fingers crossed

Kolkata: India's gems and jewellery industry hopes that the Democrats' sweeping victory in the US midterm elections will help fast-track the proposed trade agreement between the two countries and ease pressure on domestic exporters, failing which the diamond cutting and polishing hub of Surat could face more job losses amid tariff-related uncertainty, said industry executives.

An early trade deal is critical to restoring export competitiveness, providing policy certainty and protecting employment, said Kirit Bhansali, chairman of the Gem & Jewellery Export Promotion Council.

"The outcome of the US midterm elections is an important development in the country's political landscape. The United States remains one of India's leading markets for gems and jewellery, and we look forward to continued engagement between the two countries to strengthen this important trade relationship," he said.


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Bhansali expressed hope that the momentum towards the proposed agreement would continue, pointing out that the earlier tariffs imposed by the Trump administration were executive measures and had not been enacted through congressional legislation. Sustained dialogue and constructive engagement between the two governments could help address outstanding trade concerns, he said.

India's natural diamond industry is therefore looking at revenue stabilisation rather than a broad-based recovery this financial year. Industry revenue is projected at $14.8-15.2 billion, remaining largely flat year-on-year after three consecutive fiscals of decline, according to a Crisil Ratings report.