Jaipur: Jewellery, handicrafts, and garments exporters in Rajasthan have expressed deep concern at the 50% tariff imposed on Indian goods by the US. They say if this becomes effective, businesses will be disrupted, leading to financial distress and large-scale job losses.According to industry estimates, handicrafts from Rajasthan account for about 22% of exports in the country, and 50% of them go to the US markets. Similarly, 30% of the garments exports go to the US, with the sector employing around 10 lakh people. The state, which is a hub for studded jewellery, exports items worth around Rs 11,000 crore annually, with 30% of them going to the US.Rajiv Arora, former chairman of Rajasthan Export Promotion Council, said, “India exports gem and jewellery worth around Rs 18,000 crore to the US, with Rajasthan accounting for Rs 3,000 crore. Around 1 lakh workers are engaged in it in Sitapura and the Walled City. If the exports attract a 50% tariff, the sector would be under huge pressure, triggering large-scale job losses.” In 2023-24, Rajasthan’s gem and jewellery exports stood at Rs 11,183 crore.Heavily reliant on the US markets, the handicrafts sector is also looking at an uncertain future. In 2023-24, the sector exported merchandise worth Rs 7,986 crore, with about 50% of it going to the US. Dileep Baid, former chairman of Exports Promotion Council for Handicrafts (EPCH), said, “Exports to the US grew last year because of sagging demand from the slowing European economies. With 50% tariffs, we do not think we will be able to export anything. It will be a nightmare for the industry.”Labour-intensive sectors like readymade garments, carpets, and construction stones such as marble and granite will also feel the impact of the high tariffs. Zakir Hussain, former president of Garment Exporters of Rajasthan (GEAR), said, “About 30% of the garment exports from Rajasthan go to the US market. With the high tariffs, the buyers will turn to Bangladesh, Vietnam, and China.”However, the garment exporters are likely to avoid the severity of the impact as they have diversified into the domestic market, which now accounts for 50% of their production. In 2023-24, Rajasthan exported garments worth Rs 2,751 crore.
