Surat's Diamond Dilemma: U.S. Tariffs Cast Shadow on India's Gem Exports

India's diamond polishing hub, Surat, faces economic turmoil due to new U.S. tariffs on gem and jewellery exports. This threatens thousands of jobs, as the U.S. accounts for a significant share of India's exports. Industry leaders foresee short-term losses and are exploring alternate markets.

Surat, India's diamond polishing center, is under duress as new U.S. tariffs on gem and jewellery exports pose a major threat. The imposition of a 27% tariff by the U.S., a key market consuming over 30% of India's exports, has sparked widespread concern in the industry.

The ripple effect is pronounced in Surat, where the economy heavily relies on diamond polishing and trading, employing a vast workforce. The city's position as a global diamond processing leader is at risk, with experts predicting inevitable job losses, echoing the industry's struggles during the 2008 financial crisis.

With the U.S. being a major export market for India, finding alternative buyers becomes paramount. However, industry stalwarts acknowledge that no single market can fully replace the U.S. demand. The industry's immediate challenge lies in adjusting production levels and salvage existing orders amid rising tariffs and declining imports.

(With inputs from agencies.)