Jewellers in the city are facing uncertainty as their American clients request a temporary suspension of orders, raising concerns over liquidity and the operation of factories. The implementation of new tariffs from Wednesday has also caused concern among handicraft and dimension stone exporters.

While the industry keeps its fingers crossed, expecting the country's leadership to negotiate a deal with the US, there is a silver lining in the ongoing tariff war between the US and China.
Suresh Agarwal, president of the trade body FORTI, said, "Gems and jewellery, handicrafts, and dimension stones constitute a large chunk of the Rs 80,000 crore exports from Rajasthan. Since demand for jewellery and handicrafts is driven by discretionary spending, the impact could be unsettling for the industry."

Last year, Rajasthan exported gems and jewellery worth Rs 12,000 crore, with 33% of it going to the US. The sector employs 2 lakh artisans in the state.

Rajiv Jain, former president of the Gems and Jewellery Exports Promotion Council, said, "All transactions have come to a standstill now. Clients in the US have started putting orders on hold. We expect the govt to find a solution quickly."

Jain said with the orders being on hold, the capital will also get blocked. "We have to run factories, pay salaries to workers, and meet other routine liabilities. If the trade logjam continues for a longer period, the sector will come under tremendous pressure."

However, he added, there is some hope on the horizon. "US tariffs on China and Thailand, the other two studded jewellery hubs, are higher than India. Even though demand for jewellery in the US will suffer because of the sudden spike in prices, India will be the preferred destination for US buyers."

Agarwal also highlighted that Rajasthan's handicrafts and wooden furniture exports account for about Rs 4,000 crore annually, with around 50% of it being shipped to the US. "This is a labour-intensive business. Any slowdown in the sector will result in job losses. The dimension stone industry also faces a similar predicament," added Agarwal.

Courtesy: TOI