Can Gems And Jewellery Stocks Continue To Rally As India-US Trade Deal Slashes Tariffs?

The recent India-US trade deal has significantly impacted the gems and jewellery sector by reducing tariffs on finished jewellery and lab-grown diamonds. Tariffs on finished jewellery have decreased from 31% to 24%, providing a 7-percentage-point reduction that is expected to enhance profit margins for manufacturers. Additionally, the tariff on lab-grown diamonds has been lowered from 25% to 18%, further supporting the industry. These changes are anticipated to stimulate growth in the sector, as lower tariffs can lead to increased exports and higher demand. Analysts are optimistic about the continued rally in gems and jewellery stocks, attributing potential gains to these tariff reductions and the overall strengthening of trade relations between India and the US. The gems and jewellery industry plays a crucial role in India's economy, contributing significantly to employment and export revenues. As companies adapt to these changes, stakeholders are closely monitoring market responses and the long-term effects of this trade agreement on the sector's performance.