Surat's Diamond Industry Faces Crisis As U.S. Tariffs Hit Exports

(MENAFN- KNN India) Surat, Sep 3 (KNN) Surat, home to India's diamond polishing hub and over 800,000 skilled workers, is facing a severe challenge after the United States imposed a 50% tariff on Indian diamond imports.

Traders warn that this move has disrupted the sector, which contributes significantly to India's overall export earnings.

Local diamantaires report that existing U.S. orders have been cancelled, while new ones have virtually stopped, leaving factories struggling to maintain operations. According to industry veteran Umesh Munjapara, the sudden tariff shock has created uncertainty across Surat's diamond clusters.

Traders are now seeking opportunities in alternative regions, including expanding domestic demand and strengthening ties with other global markets.

The United States has historically accounted for nearly 32% of India's diamond exports, making it the single largest destination for polished diamonds from Surat.

With such heavy dependence, the impact of the tariff is expected to ripple through employment, local businesses, and allied industries in Gujarat.

The Gem and Jewellery Export Promotion Council (GJEPC) has begun exploring ways to diversify export destinations, reducing reliance on the U.S. and opening up newer markets in the Middle East, Europe, and Asia. However, industry leaders stress that diversification alone cannot offset the immediate losses.

Traders also highlight the need for diplomatic intervention. They view the tariffs as more than a trade measure, interpreting them as a strategic pressure tactic by the U.S. government.

Industry representatives have urged New Delhi to engage in negotiations with Washington to resolve the crisis and safeguard millions of livelihoods tied to the diamond trade.

Without quick relief, Surat's diamond sector-one of India's most iconic export industries-risks entering a prolonged slowdown.

(KNN Bureau)

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