Editor’s Note
This article examines the impact of recent U.S. tariffs on India’s diamond industry, highlighting how geopolitical trade policies are creating significant economic uncertainty for key export sectors.
The US government has imposed a 50 percent tariff on India. This tariff imposed by President Donald Trump is impacting various sectors in India, among which Surat’s diamond market is one. According to a report by Livemint, due to the tariff, export demand has reached a 20-year low. Weak demand from China and the US move have made the future of this industry appear uncertain.
The world’s largest office complex, the Surat Diamond Bourse, is currently quiet. Over 4,700 offices have been sold here, but fewer than 250 are in use. Many companies are considering shifting operations to countries like Botswana, where the tariff is 15 percent lower. This leaves small exporters with very limited options. Experts estimate that this tariff could reduce companies’ income by 20-25 percent.
Surat’s diamond industry employs millions of artisans, but under current conditions, the crisis over jobs is deepening. According to reports, if the tariff is not reduced soon, 150,000 to 200,000 workers could become unemployed. Many units have already reduced working hours and started cutting down on staff numbers.
Despite weakening demand at the international level, India’s domestic market is providing some relief to the diamond industry. Overtaking China, India has become the world’s second-largest diamond consumer. Businesspeople believe that the decline in American orders is being partially compensated for by demand from Indian customers. However, experts say that in the long term, the industry will desperately need to find new export markets and government support.