Kolkata (West Bengal) [India], August 30 : Members of India's diamond industry have said that the US decision to impose 50 per cent tariffs on Indian goods poses a challenge, but expressed confidence in the sector's resilience and the strength of the domestic market.
Amit Pratihari, Managing Director of De Beers India, underlined the importance of the US as a destination.
"The US is the largest market for polished diamonds. They consume almost 50 per cent of the global production. There will be an impact for sure, but I think it's more short-term," he said.
He praised government engagement with the US administration and noted that domestic opportunities remain strong.
"India is the second-largest diamond jewellery market. There are lots of domestic opportunities," Pratihari told ANI, on the sidelines of Diamond Conclave 2.0, organised by the Indian Chamber of Commerce.
Sabyasachi Ray, Executive Director of the Gem and Jewellery Export Promotion Council (GJEPC), called the tariff move a surprise.
"The tariffs, if they remain persistent for long, may impact our business... 50% tariffs came as a shocker for us," he said.
According to him, exporters front-loaded shipments ahead of the new tariffs that took effect on August 27.
He added, "There will be no job losses, because the employers have the capacity to sustain them for 3-6 months."
Ray also pointed to strong GDP growth and rising disposable incomes as supportive factors for jewellery demand.
Speaking on the government's position, R. Arulanandan, Director in the Department of Commerce, said, "Regarding tariffs, dialogues are going on. India is a large market and the domestic demand for diamonds is growing... Irrespective of tariffs, the exporters should not put all eggs in one basket."
Suvankar Sen, Managing Director of Senco Gold and Diamonds, said festive season demand in India could help offset losses, even as exports may dip for 1-2 months.
"In the short run, till an understanding is reached between the countries, there would be an impact," he said.
Referring to the workforce, he noted, "About 40 lakh artisans are part of this industry... They may face some uncertainty on the employment front."
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