In a blow to India’s gems and jewellery sector, nearly one lakh diamond workers in Gujarat’s Saurashtra region have lost their jobs after the United States, under President Donald Trump, hiked import tariffs on Indian gems and jewellery to 50%
The layoffs, concentrated in Bhavnagar, Amreli and Junagadh, have hit small cutting and polishing units the hardest, with workers earning ₹15,000–₹20,000 a month now left without work. Industry sources say export orders from US buyers have been cancelled or delayed, leaving production lines idle.
India processes almost 90% of the world’s diamonds, with the US and China as top markets. In FY25, exports to the US stood at $10 billion, led by cut and polished stones. Now, industry leaders warn the lab-grown diamond sector—which also depends heavily on US demand—could be next in line for a hit.
The impact isn’t limited to Gujarat. Rajasthan’s jewellery trade, centred in Jaipur, is bracing for losses after exporting ₹3,154 crore worth of gems and jewellery to the US last year. Exporters are scouting new markets, but admit diversification will take time.
Surat, India’s largest diamond hub, employing 8 lakh workers, has so far been spared mass layoffs—but traders fear it could be next if US orders don’t recover.
Industry bodies are urging the government to fast-track trade talks with Washington and provide relief measures including higher export incentives, interest subsidies, and faster GST refunds.
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