SEEPZ Jewellery Exporters Request Approval for Local Sales

Quick Summary

• Jewelry exporting units in Mumbai’s SEEPZ-SEZ seek government approval to manufacture for the domestic market, responding to upcoming US reciprocal tariffs starting April 2.
• SEEPZ-SEZ exports jewellery worth ₹28,000 crore annually, with 85% destined for the US.
• Approximately 200 units employing around 100,000 workers may be affected by the tariff hike.
• India imposes a significantly higher import duty on US gold jewellery (20%) compared to the US 5.5%-7% tariff rate on Indian gold jewellery; cut and polished diamonds face similar disparities.
• Exporters warn of reduced export volumes and potential job losses if these tariffs are implemented without adequate government action.
• Industry representatives urge a reduction of India’s import duty on US gold jewellery from 20% to 6%, or permission for SEEPZ-SEZ manufacturing units to sell locally as an option measure.

Indian Opinion analysis
The proposed increase in reciprocal tariffs by the United States threatens to disrupt India’s gem and jewellery export industry, notably concentrated in SEEPZ-SEZ Mumbai, which predominantly serves american markets. With over ₹28,000 crore annual exports-most reliant on the US-this progress creates significant risks for employment stability across nearly 100,000 workers directly linked with these units.

The disparity between India’s ample import duties on American goods (up to four times higher) versus lower US rates highlights underlying trade imbalances that could exacerbate strain unless mitigated satisfactorily through policy adjustments like tax cuts or market diversification opportunities.Granting domestic manufacturing rights could provide immediate relief by utilizing existing production capabilities efficiently and reducing reliance on international markets subject to fluctuating tariff policies-a decisive move that aligns worker security alongside systemic adaptability under potential trade uncertainties driven globally or bilateral negotiations thresholds pending alike maturity roadmaps ahead frameworks practical yet inclusivity contexts stably pursuing to respective arguments sustainability goals emphasized.
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