Already grappling with job losses and a slowdown in orders, Gujarat’s diamond sector has been dealt one other setback because the United States, its largest export vacation spot, raised import duties to 25% with a further tariff of 25% coming into impact from August 27, taking the overall to 50%.
The hike, introduced by U.S. President Donald Trump, has raised issues amongst exporters who warn the charges are “unsustainable” for long-term commerce, and are optimistic in regards to the enterprise. It comes at a time when industry remains to be battling the fallout of the Russia-Ukraine battle and the rising presence of cheaper lab-grown diamonds in international markets.
Despite the grim statistics, some leaders are urging calm. “This is a temporary phase. The U.S. has no best viable alternative to India for loose and jewellery diamonds,” mentioned Jagdish Khunt, president of the Surat Diamond Association. “Yes, tariffs are a blow, but it will eventually push prices up in the U.S., and buyers there will have to absorb the difference because sourcing from India remains unavoidable,” he informed The Hindu.
Industry estimates present that the U.S. alone accounts for greater than 30% of India’s gem and jewelry exports, making it the single-largest abroad purchaser. In Gujarat, the place practically 90% of pure diamonds imported to India are reduce and polished, commerce our bodies say multiple lakh staff have misplaced jobs since April this yr.
In May, the Gujarat authorities rolled out a aid scheme aimed toward serving to diamond artisans and small models hit by a worldwide slowdown. More than one lakh former staff from the sector have sought help underneath the programme, which provides ₹13,500 per baby to help affected households.
“Nearly 90% of India’s supply is processed here. What other alternatives do they have? We have the best ‘ratnakalakars’ (diamond artisans) in the world, and a customer buying diamonds will never compromise on quality,” asks Mr. Khunt.
He in contrast the American affinity for diamonds to the Indian love for gold, noting that simply as Indians proceed to buy gold regardless of hovering costs, U.S. customers stay steadfast in their desire for diamonds. “No matter the circumstances, they pick diamonds over gold. We expect the market to steady ahead of Christmas and New Year, with fresh orders starting to flow in,” he mentioned, including that over 7.5 lakh artisans are working in 3,500 small and huge models.
Data from the Gem and Jewellery Export Promotion Council (GJEPC), India’s apex physique for the industry, exhibits that in the 2024–25 fiscal yr, India shipped reduce and polished diamonds value $4.8 billion to the United States. The U.S. market thus accounted for over one-third of the nation’s complete diamond exports, which amounted to $13.2 billion for the yr. According to GJEPC, India’s tough diamond imports fell sharply in 2024–25 to $9.52 billion, down from $14.26 billion in the earlier fiscal.
Babu Vaghani, president of the Lab-Grown Diamonds Association, shared Mr. Khunt’s optimism, describing the present state of affairs as a “short-term crisis.” “Whatever the challenges, we must keep going until Diwali. Even if it means trading on smaller margins, the work has to continue for the sake of the lakhs of people who depend on it for their livelihood,” he mentioned.
Mr. Vaghani identified that greater than half of the artisans exterior Surat, notably in Bhavnagar, Botad, Mehsana, and different districts, are girls. “In rural areas, women play a major role in diamond polishing,” he added.
