- Title: US tariffs set to cripple India's diamond industry, endangering jobs and exports
- Date: 4th April 2025
- Summary: (SOUNDBITE) (English) FOUNDER AND CHAIRMAN OF VENUS JEWELS, SEVANTI SHAH, SAYING: "It is very difficult to understand the mindset of the American people, and about the President Trump also." VARIOUS OF WORKER LAYING OUT AND SCOOPING UP POLISHED DIAMONDS (SOUNDBITE) (English) FOUNDER AND CHAIRMAN OF VENUS JEWELS, SEVANTI SHAH, SAYING: "If they reduce the rough price, some m
- Embargoed:
- Keywords: Cutting Diamonds Dubai India Polish Polishing Tariffs
- Location: SURAT, INDIA
- City: SURAT, INDIA
- Country: India
- Topics: Asia / Pacific,Government/Politics,International Trade
- Reuters ID: LVA005416904042025RP1
- Aspect Ratio: 16:9
- Story Text: A wave of anxiety has gripped Surat, the Indian port city famed as a global diamond polishing hub, as hefty U.S. tariffs threaten to undermine the country's booming gems and jewellery exports, putting thousands of workers' livelihoods at risk.
Surat, the second-largest city in Gujarat and the home state of Prime Minister Narendra Modi, processes and polishes over 80% of the world's rough diamonds, with India accounting for nine out of every ten diamonds processed globally.
"The U.S. is our biggest market. Now that the consumption over there will be reduced, there will be a direct impact", said Indian Diamond Institute Chairman, Dinesh Navadiya.
The United States, which accounted for nearly $10 billion, or 30.4%, of India's annual gems and jewellery exports, totalling $32 billion in the 2023-24 fiscal year, imposed a 27% reciprocal tariff on India on Thursday (April 3) even as demand softens in other important markets such as China, the Middle East, and Europe.
In the city's teeming diamond market, where more than 10,000 traders and brokers gather daily, business has ground to a halt as the industry grapples with how the situation will evolve in the coming months.
"What can we do, we all thought it would be a stable market, but after this tariff we might have to close down I feel", said one manufacturer.
Falling business prospects also raise questions about the future of the Surat Diamond Bourse, inaugurated by Modi in 2023 to create thousands of new jobs and serve as a bustling epicentre of the diamond trade.
Built over 6.6 million square feet (61 hectares), the bourse was touted as the world's largest office building, surpassing the Pentagon, but for now sits largely vacant in the face of looming winds of change for Surat.
(Production: Anushree Fadnavis, Gabriel Goh) - Copyright Holder: REUTERS
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