Hike in US Duties will have "Immense Impact" on India
June 30, 21
(IDEX Online) - Plans by the USA to impose a retaliatory tariff of up to 25 per cent would have an "immense impact" on jewelry exports from India, says industry boss Colin Shah.
He says jobs would be lost as a result, and business would shift from India to China and Mexico.
The United States Trade Representative (USTR) is targeting India and five other countries for taxing foreign internet-based companies such as Amazon, Google and Facebook.
It is proposing a huge increase on import duty 17 jewelry items from India including gold and silver articles, precious and semi-precious stones and cultured pearls.
Mr Shah (pictured), chairman of India's Gems & Jewellery Export Promotion Council, told the Moneycontrol website: "Indian companies have established an estimated 500 offices around the US that provide thousands of high-paying white-collar jobs to locals.
"The imposition of duty could affect all these jobs as the Indo-US jewellery business would become unviable.
"Duties would also immensely impact the labour-intensive sector with loss of jobs and livelihoods and a shift of business to countries such as China and Mexico."
The US has agreed to put the new duties on hold for six months.