India turns to Gulf jewellery market to offset US tariffs

I shared comments with Deepthi Nair for The National News on Indian jewellery makers turning to the GCC markets to offset US tariffs. A fascinating illustration of the effects of Trump’s tariffs on trade routes and value chains…

In the aftermath of Trump announcing 25% tariffs on Indian goods, with possible “substantial” increases until India stops buying Russian oil, I commented that “US tariffs on Indian jewellery have surged, sharply eroding India’s competitiveness in its single-largest export market. As a response, Indian exporters and the Gems & Jewellery Export Promotion Council [GJEPC] have been actively exploring alternative markets, especially in the GCC“.

The UAE represents an obvious choice: “Under the India-UAE Comprehensive Economic Partnership Agreement, jewellery exports have seen a 60 per cent growth in gold jewellery and 17 per cent in diamond jewellery over the past three years, making the UAE a top destination and a gateway for India’s exports into the wider Gulf region.“

But Indian jewellers are also considering the region as a manufacturing base to circumvent US tariffs and diversify markets, as is the case with Tata Group’s Titan recently buying a 67% share in Dubai-based Damas. “Titan views the Damas network not only as a straight expansion of retail presence, but also as a potential manufacturing base within the Gulf to preserve favourable tariff access into the US”. “This move mirrors a strategic logic of retail expansion and tariff arbitrage: using the GCC as both a destination and manufacturing pivot to offset US trade barriers.”

Read the article here.

Picture credits: Getty Images