Editor’s Note
This article highlights the cascading human impact of international trade policies. As U.S. tariffs on Indian gems have escalated sharply to 50%, an estimated 100,000 skilled workers in Gujarat’s diamond hub have been pushed into unemployment, underscoring how geopolitical decisions can swiftly devastate local economies.
A severe employment crisis has deepened in Gujarat’s diamond industry following a massive increase in import duties imposed by the United States on Indian gems and jewelry.
Since the imposition of a 10% base tariff in April, nearly 100,000 workers engaged in diamond cutting and polishing in Saurashtra have lost their jobs.
The situation has worsened in the last 10 days, as the tariff was first raised to 25% and then doubled to 50%.
According to The Economic Times, the layoffs have primarily affected small units in Bhavnagar, Amreli, and Junagadh, which depend on job work from larger companies for cutting and polishing rough diamonds.
Employees in these units typically earn between 15,000 to 20,000 rupees per month.
Some displaced workers are finding employment in the lab-grown diamond (LGD) sector, but industry veterans warn that this sector is also at risk.
According to the report, the US is the largest market for LGDs, and the 50% tariff could impact this business as well.
It is worth noting that India is the world’s largest center for diamond cutting and polishing, processing nearly 90% of the world’s diamonds.
Due to the tariffs, the gem and jewelry trade in Jaipur, Rajasthan, is also moving towards losses. The state exported gems and jewelry worth 176.75 billion rupees in FY 2025, of which approximately 31.54 billion rupees worth were exported to the US.
Jaipur is globally known for colored gemstones and diamond-studded jewelry.
It is noted that until FY 2025, India exported gems and jewelry worth $10 billion (approximately 875 billion rupees) to the United States.