Surat’s diamond industry is poised for a significant comeback following the United States’ reduction of import tariffs on Indian goods from 50% to 18%. This decision is anticipated to benefit numerous workers and bolster India’s diamond and jewellery sector. The U.S. stands as India’s primary market for diamonds, representing nearly 30% of total exports in the sector, valued at approximately USD 10 billion annually.
Diamond exports alone contribute USD 7-8 billion, with a notable decline of 44.4% in exports between April and December 2025 due to high tariffs. Dinesh Navdia, Chairman of the Indian Diamond Institute in Katargam, expressed relief for the industry, stating that the tariff reduction will inject fresh vitality. This move is expected to enable exporters to offer more competitive prices, regain orders, and enhance medium-term growth and employment prospects.
Navdia highlighted that prior trade agreements with the European Union, coupled with the recent U.S. tariff cut, will open substantial markets for India’s diamond and jewellery sector. The reduction is projected to incentivize American buyers to once again opt for Indian diamonds and jewellery, sustaining demand for natural stones amidst competition from lab-grown diamonds.
Shanti Dhanani, Treasurer of the Surat Diamond Association, emphasized that the tariff reduction will generate significant employment opportunities, particularly in the CVD and HPHT diamond segments. With around 800,000 to 1,000,000 artisans working in Surat’s factories, this cut is expected to fortify livelihoods and revive closed units in rural areas of Saurashtra.
Damji Mavani, former secretary of the Surat Diamond Association, hailed the reduction as a “booster dose” for the industry, attributing it to negotiations between Prime Minister Narendra Modi and US President Donald Trump. Dhiru Savani, Secretary of the association, noted that the reduction will enhance foreign exchange earnings, attract more investment, and provide long-term stability to the sector, supporting India’s economy.
The tariff reduction is anticipated to breathe new life into the Surat-Mumbai diamond hubs, leading to increased exports and securing the future of India’s diamond industry. This move is poised to offer fresh momentum for growth and employment in the sector.
