Nearly 100,000 workers in Gujarat’s Saurashtra region have lost their jobs after the US sharply increased tariffs on imported diamonds.
Starting from a 10% tariff in April, the US raised it to 25%, and then doubled it to 50%, causing major disruption and uncertainty in the diamond trade.
Small Workshops Suffer Most
Most layoffs happened in small diamond cutting and polishing units in Bhavnagar, Amreli, and Junagadh.
These small workshops work for bigger exporters but are now facing delayed or cancelled orders from the US.
Many workers, who earned between ₹15,000 and ₹20,000 per month, have had to find new jobs or return to their hometowns.
Shift to Lab-Grown Diamonds
Some laid-off workers are moving to the lab-grown diamond (LGD) industry. But experts warn that if LGDs also face the 50% tariff, job losses could get worse since the US is the biggest market for these products.
Exporters Concerned
Big exporters don’t openly talk about layoffs, but insiders confirm there are cuts in production, temporary closures, and shorter working hours.
Companies like Kiran Gems and Gallant Jewellery are feeling the pressure as tariffs reduce profits and threaten their future.
US buyers are even thinking about moving manufacturing to countries like Vietnam and Thailand where tariffs are lower.
India’s Diamond Industry at Risk
India processes about 90% of the world’s diamonds and is the top exporter to the US, sending $10 billion worth of gems and jewellery in FY25.
If the tariff problem isn’t solved, India could lose its edge, and buyers might look for other suppliers.
Calls for Government Action
Industry leaders want the Indian government to speed up trade talks with the US to fix the tariff issue.
They are also asking for export benefits, lower interest rates, and faster GST refunds to help businesses.
Without quick action, the problem could spread from Saurashtra to Surat, the core of India’s diamond trade.
60-word Summary:
A sharp US tariff rise on diamonds has led to nearly 100,000 job losses in Gujarat’s Saurashtra region, affecting small diamond units.
Export orders are delayed or cancelled, forcing workers to move to lab-grown diamonds.
Industry fears worsening losses and urges the Indian government to act fast to protect the diamond trade.
