JAIPUR: Exporters in Jaipur’s manufacturing hub for studded jewellery, handicrafts and garments are bracing for an up to 50% drop in shipments to the US and job cuts as the Trump administration’s supplementary duty of 25% on Indian goods kicks in, potentially squeezing the life out of their businesses.Factory owners in the two special economic zones primarily export to the US. Studded jewellery exports from Rajasthan are already down 30% over the past two years, plunging from Rs 82,000 crore in 2023-24 to nearly Rs 60,000 crore in 2024-25.“The supplementary duty will shave off half of our total exports and turn away buyers from other European countries that brand them separately and export to the US,” said Rajiv Jain, former president of the Gems and Jewellery Exports Promotion Council of India.The state’s labour-intensive handicrafts sector in Rajasthan, which accounts for about 22% of India’s exports to the world, faces a similar predicament. About 60% of these exports go to the US.“The govt has announced export promotion support of Rs 25,000 crore. Exporters need support now to meet their commitments to banks, diversify markets, and basically stay in business,” said Rajiv Arora, former chairperson of the Rajasthan Export Promotion Council.Dileep Baid, who formerly headed the Exports Promotion Council for Handicrafts, said layoffs forced by a downward spiral in exports was the biggest worry. “Rajasthan’s handicrafts sector employs about 5-6 lakh people. Many of these jobs will be lost because of the double whammy 50% tariff.”Baid urged the govt to reduce GST to 5% from 12-18% so that the exporters can diversify their businesses and explore the domestic market. “A lot of exporters will suffer as they still have to repay loans and advances. The govt will have a big role to play in easing their troubles,” he said.The readymade garments sector, which employs over two lakh people, is in trouble, too. Although some exporters have entered the domestic market, exports still account for the bulk of their revenue.“The impact will be widespread. Most of these companies are in the MSME segment, which will face severe financial stress, cancellation of orders and possible factory closures. Allied industries like dyeing, packaging, transport and logistics will also suffer,” Rakshit Poddar, president of the Garment Exporters of Rajasthan, said.In the worst-case scenario, up to 30% of employees in this sector could soon lose their jobs, Poddar warned.
