After US tariff hike, 100,000 jobs lost in Gujarat’s Saurashtra region: Report
Ahmedabad: The Indian diamond cutting and polishing industry is facing a severe blow after US tariffs surged from 10 percent in April to 50 percent in August, leading to the loss of nearly 100,000 jobs in Gujarat’s Saurashtra region.
Gujarat Diamond Workers Union vice-president Bhavesh Tank said job losses spiked sharply over the past 10 days as duties first climbed to 25 percent and then doubled.
Most layoffs occurred in small units across Bhavnagar, Amreli, and Junagadh after American buyers postponed or cancelled orders, according to an ET report.
Industry cautious, but fears grow over lab-grown diamonds
Larger diamond firms are hesitant to publicly discuss the fallout, fearing backlash from stakeholders.
Some displaced workers have found jobs in the lab-grown diamond (LGD) sector, but concerns persist that LGDs could face similar tariff pressures.
“LGDs are also heavily dependent on the US market. If the 50 percent tariff affects them, job losses will rise further,” said Jayantibhai Savalia, chairman (Gujarat region) of the Gem & Jewellery Export Promotion Council (GJEPC).
Short-term impact: lower production and possible layoffs
Dinesh Lakhani, group director of Rs 17,000-crore Kiran Gems, said short-term effects could include reduced production, temporary layoffs, and shorter work shifts.
“If order volumes drop sharply, cost-cutting through job reductions may become unavoidable,” he noted.
US and China dominate export market
India remains the world’s largest diamond exporter, with the US and China as its main markets. In FY25, gems and jewellery exports to the US reached $10 billion, largely comprising cut and polished diamonds.
The industry is urging the government to expedite trade talks with the US, boost export incentives, provide interest subsidies, and accelerate GST refunds.
Exporters brace for more pressure
Arvind Gupta, MD of Gallant Jewellery, said the US accounts for over 25 percent of its exports. “High tariffs will dent volumes, squeeze margins, and displace thousands of jobs,” he warned.
While Surat—India’s largest diamond hub with 800,000 workers—has yet to feel the full impact, some buyers are already exploring production shifts to Vietnam and Thailand to circumvent US tariffs.
“If no viable solution emerges, units may be forced into drastic decisions,” said Vijay Kumar Mangukiya, MD of Dhani Jewels.
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