Bhavnagar’s diamond industry, already hit by a prolonged slump, is struggling to recover after Diwali. Of the district’s 3,000 small and large units, nearly 500 had closed earlier due to US tariffs imposed during the Trump era. Of the remaining 2,500 units, only around 1,000 have reopened after the festival season.
High tariffs, falling demand and rising costs have crippled operations. With business volume down to barely 20%, Bhavnagar’s daily trade — once ₹150 crore to ₹1,500 crore — has plunged to just ₹20–₹25 crore.
Before the tariff shock, the district processed raw diamonds and exported nearly 80% of its polished stones abroad. The US decision to impose a 100% tariff shattered both major hubs and Bhavnagar’s small and medium units. Around 300 factories had already shut earlier, and the tariff-driven slowdown forced another 200 units to close, pushing thousands of skilled workers into other jobs.
A brief revival seen in the days after Navratri fizzled out once Diwali began. Even Labh Pancham and Agiyaras, typically strong business days, failed to revive demand this year.
Adding to the strain, lab-grown diamonds are rapidly disrupting the market. With synthetic stones priced as low as ₹20–₹25, traditional diamond sorting jobs are shrinking as CVD stones require minimal processing.
With 1,500 units still closed, exports falling and lab-grown diamonds gaining ground, Bhavnagar’s once-thriving diamond sector is slipping deeper into crisis. Industry leaders warn that without strong export-focused policies and long-term support, the backbone of the district’s economy may continue to erode.