Business
Indian Gems, Jewellery Exporters Eye Overseas Units To Dodge US Tariffs
New Delhi: Indian diamond and jewellery exporters are looking to set up production units in friendly countries to avoid the impact of US tariffs and maintain competitiveness in the American market, according to industry insiders.
However, despite the anticipation of industry insiders, no significant player has officially announced such a move so far.
The US currently has a 50 per cent tariff on Indian diamonds and gems, which took effect on August 27, 2025.
“Our American market is like a major market, and that is a major segment of our exports. But naturally, to circumvent that, people are finding out ways where they can have a partial making in India and then try to finish the product somewhere else. So that technically it is not from India and it’s not subject to heavy tariffs,” said Hetal Vakil Valia, former National Chairperson of the India Bullion and Jewellers Association (IBJA) women’s wing. She said this on the sidelines of the 13th Edition of the Delhi Jewellery & Gem Fair 2025 in the national capital on Sunday.
Yogesh Mudras, Managing Director, Informa Markets, said industry players are trying to look at different markets to export, like Europe, Southeast Asia, and the Middle East.
“Industry is also trying to understand that there’s risk at this moment,, so they are trying to look at different markets to export, especially markets like Europe, Southeast Asia, and the Middle East. They’re trying to reroute the jewellery by semi-processing and then going to countries like Oman, where they can process it fully and then export to the US,” Mudras told ANI.
On the need to diversify trade, Prasoon Dewan, Scientific Gemologist and CEO of Divish Aurum Private Limited, which exports to markets in Europe and other geographies, said, “Policy shifts create tensions; tariff risks are always an integral part of any export business. This should never be seen as the end of the road. I think it is wiser for every business house to have multiple and alternative market avenues into different markets.”
Encouraging businesses to think beyond traditional markets, Dewan added, “It’s important for the new Bharat to step out of its comfort zone and explore emerging markets. Latin American countries, for instance, may offer a warm entry for our goods, alongside untapped potential in Eastern Europe.”
He concluded by urging a balanced and inclusive global trade outlook: “Every market should be treated equally. We must venture into all potential regions with a fair and open trade approach.
According to Crisil Intelligence, Micro, small and medium enterprises (MSMEs) in sectors such as textiles, diamonds and chemicals, which together account for nearly 45 per cent of India’s total exports, are likely to be the most affected by the imposition of higher tariffs by the US.
In the gems and jewellery sector, Surat’s diamond polishers, who dominate the country’s exports with over 80 per cent share, will also be severely affected. Diamonds form over half of India’s total gems and jewellery exports, with the US being a major consumer, accounting for nearly a third of shipments.
NEW DELHI: The West Asia conflict is pushing govt to look at a faster transition towards renewable energy, including the possibility of increasing ethanol blending in petrol from 20-25%, although in a calibrated manner. This will come along with increased refining capacity within the country, so that there is a buffer in the system and greater domestic resilience, those familiar with the discussions said, pointing out that sustaining refineries at 100% capacity is not sustainable.While Barmer refinery has begun operations, expansion at Numaligarh is underway and work on integrated refineries on the west coast is also under focus. Apart from a mega refinery in Maharashtra, a new facility in Gujarat is also planned.Officials said rising use of renewables, biofuels and hydrogen in the energy mix was no longer just an environmental issue, but a strategic necessity in a situation like the present one, where the military conflict in West Asia has disrupted global energy supplies, triggering a supply crisis and a surge in oil and gas prices.According to officials, 20% ethanol blending has helped India save 4.5 crore barrels of crude annually and reduce foreign exchange outflow by around ₹1.5 lakh crore so far. Given the concerns over fuel efficiency and impact on vehicles, govt is expected to take a gradual approach that addresses the anxiety on ethanol blending. The third pillar on energy is expanding the strategic petroleum reserves.
Millions of car finance payouts are in jeopardy after the UK’s financial watchdog indicated its compensation scheme faces significant delays, changes, or even collapse.
This uncertainty stems from four legal challenges against the Financial Conduct Authority (FCA).
The FCA has advised motor finance firms to prepare for the possibility that its redress scheme, which could see an average payout of £829, may not proceed.
The regulator stated that while a hearing date is unclear, these cases are unlikely to be heard before October.
In the meantime, it is in discussions about the “possibility of suspending some elements” of its compensation scheme, while still urging lenders to prepare for payouts.
But the regulator said it was also considering its options should parts of the scheme be quashed by the courts, including proceeding with a revised version or asking lenders to plan for a scenario where “there would be no scheme”.
This could mean lenders need to be ready to respond to complaints from car finance customers individually, rather than under the rules of an industry-wide programme set by the FCA.
“Many people will be frustrated that the legal action will delay payouts due to begin this year,” the FCA said.
“We remain committed to ensuring consumers receive any compensation owed as promptly as possible.”
The FCA set out the final details of its compensation scheme in March, which it estimated could cost the industry about £9.1 billion in total.
It had been expecting millions of claims to be paid out this year and the vast majority settled by the end of 2027.
The financial services arms of carmakers Volkswagen and Mercedes-Benz and the car finance arm of French bank Credit Agricole, as well as Consumer Voice, a group representing consumers, are asking the courts to quash the scheme, arguing the rules are unlawful.
“Between the four separate legal challenges, it is claimed in effect that the FCA’s approach to establishing the schemes has been both unduly favourable to consumers and unduly favourable to lenders,” the watchdog said.
At least one claim alleges that the FCA has breached the rights of lenders under the 1998 Human Rights Act, according to the watchdog.
Despite the uncertainty of the legal cases, the watchdog is still advising consumers to complain directly to their lender if they think they might be owed compensation, which they can do for free using a template letter on its website.
The federal government has increased petrol and diesel prices by nearly Rs15 per litre each for the next week.
In a notification issued on Friday, the Petroleum Division said new fuel rates will come into effect from May 9.
The price of petrol has jumped from Rs399.86 to Rs414.78, while the HSD price increased from Rs399.58 to Rs414.58 per litre.
This marks the third consecutive increase in petrol and diesel prices after cumulative hikes of Rs33.28 on petrol and Rs46.16 on diesel over the previous two weeks.
The government has been reviewing petroleum prices every Friday night amid global oil market volatility linked to the US-Iran conflict.
Global oil prices were up more than 1% on Friday after renewed fighting broke out between the US and Iran, threatening a shaky ceasefire and dashing hopes for progress on reopening the Strait of Hormuz, a key oil and gas transit route.
Brent crude futures were up $1.41, or 1.41%, at $101.47 a barrel as of 0123 GMT. West Texas Intermediate (WTI) US crude futures rose by $1.12, or 1.18%, to $95.93 a barrel. At the market open prices had risen by more than 3%.
Petrol is mainly used by commuters in small vehicles, rickshaws and two-wheelers. Higher fuel prices significantly impact the budgets of middle and lower-middle-class households, who rely on petrol for daily travel.
On the other hand, a significant portion of the transport sector relies on high-speed diesel.
Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.
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