US Tariffs Cast Shadow on India’s Diamond Exports
India’s burgeoning diamond export sector faces a significant setback. The US, the largest importer of Indian polished diamonds, recently announced new tariffs and penalties. This move is expected to severely impact the industry, according to Crisil Ratings.
These new trade barriers could significantly hinder India’s diamond exports to the US. Currently, the US accounts for a substantial 35% of India’s total diamond exports in fiscal year 2025.
The impact extends beyond mere financial losses. Thousands of jobs, particularly in Gujarat’s diamond cutting and polishing hubs, are at stake. The government needs to urgently address this challenge through diplomatic efforts and exploring alternative markets.
The situation demands immediate attention. Failure to mitigate the impact of these tariffs could trigger a domino effect, affecting not only the diamond industry but also the broader Indian economy. The government’s proactive response will be crucial in safeguarding this vital sector.
