Gem, jewellery exporters heave a sigh of relief as the US puts off punitive

SENSEX 73,852.90

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CRUDEOIL 9,483.00

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GOLD 146,330.00

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SILVER 208,450.00

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SENSEX 73,852.90

 -876.37

NIFTY 22,888.95

 -257.20

NIFTY 22,888.95

 -257.20

CRUDEOIL 9,483.00

+ 27.00

CRUDEOIL 9,483.00

+ 27.00

GOLD 146,330.00

 -936.00

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Exporters eye Christmas orders as gold price declines, supporting festive demand and buying

By Suresh P Iyengar

Updated - October 20, 2026 at 06:51 PM. | Mumbai

India’s gem and jewellery exports rose 13 per cent to $14.30 billion (₹1.36 lakh crore) in the first half of this fiscal year, despite global uncertainties | Photo Credit: AMIT DAVE

The gem and jewellery exporters expect fresh orders from the US to revive, with fears of a punitive 100 per cent import duty on India now on the back burner.

On September 18, the US Congress enacted the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 (SRIA), which authorised tariffs of up to 100 per cent on goods from the top five buyers of Russian crude oil or natural gas. The tariffs would apply to India and China, the two largest buyers of Russian oil.

However, late last week, US President Donald Trump exercised his waiver authority, putting the proposed 100 per cent punitive duties on hold in the national interest of the US.

With soaring diesel prices affecting US farmers and midterm elections around the corner, Trump announced an agreement with Russian President Vladimir Putin to supply Russian diesel to the US and global markets, starting with an initial shipment of more than 300,000 tonnes (about 2.25 million barrels).

Russia will also increase its supplies to global markets to drive down energy prices, which have surged due to the US-Israel war on Iran.

Colin Shah, Managing Director of leading exporter Kama Jewelry, said the latest waiver provides much-needed clarity for exporters during this crucial shipping season.

The tariff uncertainty witnessed last year accelerated the Indian gems and jewellery industry’s efforts to diversify into newer markets. However, the US continues to be its largest export market, and demand for the coming Christmas season has been very encouraging, he said.

Despite the several hurdles it has faced in the past, the industry has demonstrated resilience, supported by sustained consumer demand for jewellery, he added.

India’s gem and jewellery exports rose 13 per cent to $14.30 billion (₹1.36 lakh crore) in the first half of this fiscal year, despite global uncertainties, supported by strong gains in studded gold jewellery, silver jewellery and polished lab-grown diamonds.

Meanwhile, despite a weak rupee, domestic gold prices fell 5 per cent in the past month to ₹145,944 per 10 grams on Monday, from ₹153,337 on September 21, according to data from the India Bullion and Jewellers Association.

Kavita Chacko, Research Head, India, at the World Gold Council, said the recent decline in gold prices had provided some support to demand. Manufacturers were reporting healthy order flows as retailers replenished inventories to meet seasonal demand, while industry feedback pointed to improving in-store footfall, she said.

Rajeev Sharan, Head of Research at Brickwork Ratings, said families were keeping their festive spending budgets steady, even if it meant buying lighter jewellery, while a growing share of their money was flowing into gold coins, bars and exchange-traded funds.

The shift is significant as festive buying is moving beyond jewellery purchases towards a more disciplined approach to wealth protection, he said.

Published on October 20, 2026

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