Gujarat and Rajasthan’s Gem, Diamond Trades Suffer Heavy Losses under US Tariff Hikes
Steep US tariffs on Indian gems and jewellery have resulted in over 100,000 job losses in Gujarat and stalled exports in Rajasthan. Industry seeks new global markets, but replacement for US demand remains elusive, threatening economic stability in affected regions.
The recent escalation of US import tariffs on Indian gems and jewellery has caused significant disruption in Gujarat’s diamond industry and Rajasthan’s coloured gemstone sector. Beginning with a 10% tariff and rising to 50%, the US measures have led to job losses topping 100,000 in the Saurashtra region, impacting workers in small cutting and polishing units reliant on exports to the US. Export orders have been cancelled or put on hold, causing production lines to stall and deepening employment crises.
India, the world’s largest diamond cutting hub and major supplier to the US market, witnessed exports worth $10billion in FY25. The tariff hits not only traditional gem and jewellery segments but also the lab-grown diamond sector, which depends heavily on US buyers. Exporters now look to diversify into new markets, but industry experts caution that alternative destinations cannot match US consumption volume.
This situation challenges the livelihoods of thousands and may trigger a wider economic ripple effect if exports do not recover or diversify sufficiently.
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