Gujarat’s diamond cutting and polishing industry is facing massive job losses after US tariffs on Indian diamonds jumped from 10% in April to 50% in August. The steep hikes have already cost nearly 100,000 jobs in Saurashtra, especially in Bhavnagar, Amreli, and Junagadh, as American buyers delay or cancel orders, according to the Gujarat Diamond Workers Union.“These small units, employing 3–4 lakh workers, were already hit by weak demand from the US and China. The April tariff hike dried up cutting and polishing work, and now workers earning ₹15,000–₹20,000 a month are being let go,” said union vice-president Bhavesh Tank.Some laid-off workers are moving to the lab-grown diamond (LGD) sector, but industry leaders warn that LGDs—also dependent on the US—could face similar tariff pressures.Large diamond companies are cautious about speaking out, but admit that reduced production, shorter shifts, and temporary layoffs may be unavoidable if orders keep falling.India is the world’s largest diamond exporter, with the US and China as top markets. In FY25, gems and jewellery exports to the US were worth $10 billion, largely cut and polished diamonds. The industry is urging the government to fast-track trade talks with the US, boost export incentives, offer interest subsidies, and speed up GST refunds.While the immediate impact on Surat—home to 8 lakh diamond workers—is limited, some buyers are already shifting sourcing to Vietnam and Thailand to bypass tariffs. If the trend continues, industry insiders fear even deeper job losses.
