INDIAN GEM AND JEWELLERY INDUSTRY U.S. TARIFFS IMPORT COSTS GOLD DIAMOND JEWELLERY DIGITAL TRANSFORMATION E-COMMERCE AI DATA ANALYTICS AUGMENTED REALITY VIRTUAL TRY-ONS SOCIAL MEDIA MARKETING GOVERNMENT SUPPORT CUSTOMS DUTY INDUSTRY GROWTH NATIONAL
INDIA
By IFAB MEDIA - NEWS BUREAU - March 28, 2025 | 1063 7 minutes read
The Indian gem and jewellery industry, which depends heavily on the U.S. market, is facing challenges due to new American tariffs. With import costs for gold and diamond jewellery rising by 5 to 10 percent, businesses are looking for ways to stay profitable. As traditional sales become more expensive, companies are shifting towards digital solutions to survive and grow.
Rising Costs and Their Impact
The new tariffs have led to a 10 percent increase in jewellery import costs, making products more expensive. Export numbers are unstable, and the cost of raw materials has gone up. India’s jewellery industry, worth around $70 billion as of 2023, is feeling the pressure. With 1.3 million people working in this sector, finding new ways to sustain business is crucial.
The Digital Shift: A New Way Forward
To manage rising costs, Indian jewellery companies are rapidly adopting digital tools. Online platforms, artificial intelligence, and data analytics are helping businesses reach more customers and improve efficiency. Companies are focusing on e-commerce, social media marketing, and easy-to-use websites to grow beyond traditional markets.
How Technology is Changing the Industry:
- Online Sales Growth: More jewellery is being sold online as companies invest in digital storefronts and interactive shopping experiences.
- Smart Data Use: AI and data analytics help businesses understand customers better and manage supply chains efficiently.
- Virtual Try-Ons: Augmented reality (AR) lets customers try jewellery virtually, reducing the need for physical stores.
- Social Media Marketing: Influencers and digital campaigns are helping brands connect with customers and increase sales.
- Government Support and Future Growth
To support the jewellery sector, the Indian government has reduced customs duty on gold from 15 percent to 6 percent. This is expected to reduce financial pressure and boost industry growth. The organized jewellery sector is set to expand by 20 percent per year between FY25 and FY26, increasing its share of the market.
Even with current challenges, experts predict that profit margins will recover by FY26, thanks to economies of scale and technology-driven efficiency. By embracing digital transformation, the industry is expected to come out stronger and more competitive in the global market.
In response to the challenges posed by the U.S. tariff increases, India's jewellery industry is increasingly turning to digital solutions to enhance efficiency and transparency. One notable example is DiaTrac Solutions, a company specializing in advanced, cloud-based inventory management software tailored for the diamond and jewellery sector.
About DiaTrac Solutions
DiaTrac Solutions offers a comprehensive platform designed to streamline operations and support business growth by providing real-time visibility and control over inventory. The software encompasses features such as:
- Comprehensive Stock Tracking: Monitor every diamond, gemstone, and metal piece within the inventory.
- Grading, Certification & Monitoring: Ensure quality through integrated grading tools.
- Custom Reporting & Analytics: Gain valuable insights with tailored reports and analysis.
- Barcode Scanning and Label Printing: Facilitate efficient stock handling with easy scanning and printing.
Additionally, DiaTrac integrates with platforms like Shopify, CRM systems, QuickBooks, and WhatsApp, enhancing its utility in a digitally transforming market.
How DiaTrac Can Help
By adopting DiaTrac's solutions, jewellery businesses can:
- Enhance Operational Efficiency: Automate inventory management processes, reducing manual errors and saving time.
- Improve Transparency: Maintain clear records of inventory movements, aiding in compliance and customer trust.
- Adapt to Market Changes: Utilize real-time data to make informed decisions, crucial in navigating tariff-induced market fluctuations.
Incorporating such digital tools enables the jewellery industry to mitigate the adverse effects of trade disruptions and position itself competitively in the global market.
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