In a gold market & Indian jewellery exports arena, there are various favourable factors. According to the gold market report that recollected & referred US favour under the International jewellery trade, heading. That report said, removal of proposed tariffs by the US will further help Indian jewellery exports.
Although exports to the US have grown, there has been ongoing uncertainty with regard to new tariffs levied by the US on Indian exports.
To provide some context, in April 2021 the US Trade Representative (USTR) proposed retaliatory duties of 25% on six nations, including India, that had introduced e-commerce taxes on US companies, such as Amazon. This included 17 jewellery categories worth approximately US$50mn annually in exports, according to India’s
Gem & Jewellery Export Promotion Council (GJEPC).
In June 2021, after the conclusion of the one-year Section 301 investigations, the USTR suspended these tariffs for a period of up to 180 days to give additional time to complete the ongoing multilateral negotiations on international taxation, which were to take place at the OECD and the G20. These tariffs were finally scrapped in November 2021 and, looking ahead, the removal of this uncertainty will help Indian exports to continue their aggressive push into the US market. Recent India-US trade discussions have included a proposal to restore India’s beneficiary status under the US GSP system.