With exports of nearly Rs 18,000 crore, coloured gemstones and finished jewellery from Jaipur form the cornerstone of Rajasthan's economy, positioning the city as one of the world's most important gemstone hubs.

The gems and jewellery trade is a critical pillar of the state's economy. Alongside tourism, it is the largest foreign exchange earner and employs nearly four lakh artisans and workers, many of whom still cut and polish coloured gemstones entirely by hand. This skilled craftsmanship is a defining attraction of the Jaipur jewellery market. However, these traditional livelihoods were placed at serious risk in a volatile international trade environment driven by fluctuating tariffs.

With US tariffs coming into effect in August last year, the gems and jewellery trade witnessed a sharp decline of nearly 44 per cent, resulting in significant losses for exporters. A large portion of Jaipur's exports is linked to the United States. Industry estimates suggest that of the Rs 18,000 crore in total exports, nearly Rs 3,200 crore was attributed to the US market alone, making the impact of the tariffs particularly severe.

Alok Sonkhiya, President of the Jaipur Jewellers Association, said, "We are ecstatic about the new trade deal. Last year, our exports experienced a significant decline as the tariffs took effect just ahead of the Christmas season. There were large-scale cancellations of orders. While some exporters with higher margins were able to adjust their consignments, businesses operating on narrow margins suffered heavy losses."

The uncertainty was further compounded by sharp volatility in silver and gold prices, making it an especially unstable year for those involved in gemstone cutting and the manufacture of finished jewellery.

However, with renewed momentum from the India-US trade agreement and growing optimism around the India-EU trade deal, exporters are hopeful that Jaipur's jewellery bazaar will regain its lost sheen and competitiveness in global markets.

Ankit Solanki, Vice President, Sales and Marketing, Valentine Silver, said, "Apart from the US, new markets are also emerging. The India-EU trade deal is welcome, and countries like Australia and the UAE are also showing strong interest in Indian jewellery. High tariffs had earlier caused us to lose business to competitors such as Thailand and China, but the current trade environment gives Indian exporters a renewed advantage."

Courtesy : NDTV