Nearly 100,000 diamond workers in Gujarat’s Saurashtra region have lost their jobs after the United States sharply increased tariffs on imported diamonds. The tariff, which was first set at 10% in April, was raised to 25% and then doubled to 50%, creating uncertainty and badly hurting the diamond trade.

Most of the job losses are in small cutting and polishing units in Bhavnagar, Amreli, and Junagadh. These small workshops usually process diamonds for bigger exporters. But now, many US orders are being delayed or cancelled.

The workers who lost their jobs used to earn around ₹15,000–₹20,000 a month. Many have been forced to look for other work or return to their hometowns.

Some of these workers have found jobs in the lab-grown diamond (LGD) sector. But industry leaders warn that if LGDs are also included in the 50% tariff, the job situation will get much worse because the US is the biggest market for these products.

Exporters and India’s global position at risk

Large exporters are avoiding public statements on layoffs, but insiders say production has been cut, some units have temporarily shut down, and working hours have been reduced. Companies like Kiran Gems and Gallant Jewellery are under heavy pressure, with profits shrinking and their long-term survival in danger.

US buyers are also starting to move manufacturing to other countries such as Vietnam and Thailand, where tariffs are lower.

India processes around 90% of the world’s diamonds and is the largest exporter to the US, sending $10 billion worth of gems and jewellery there in FY25. Experts warn that if the tariff problem is not solved soon, India could lose its competitive edge, and buyers may shift to other countries.

Industry demands government action

Industry groups are asking the Indian government to speed up trade talks with the US to reduce the tariff. They also want export incentives, interest subsidies, and faster GST refunds to help businesses survive. Without quick action, the impact could spread from Saurashtra to Surat, the heart of India’s diamond industry.

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