13 August,2025: The diamond cutting and polishing sector in Saurashtra, Gujarat, has been hit hard after the United States introduced a 10% baseline tariff on Indian diamonds in April 2025, leaving nearly 100,000 workers unemployed, officials reported.
The new tariff has raised the cost of Indian diamonds for US buyers, causing a significant drop in demand. Small and medium-sized units in the region have been especially affected, with many forced to shut down or reduce operations. Bhavesh Tank, Vice President of the Gujarat Diamond Workers Union, said that numerous canceled and delayed export orders have directly led to the large-scale layoffs.
The social and economic impact has been substantial. Workers who relied on modest but stable incomes now face uncertainty, while many have returned to their native villages seeking alternative employment opportunities. This reverse migration is putting added pressure on rural communities and local resources.
Industry representatives have called for immediate government support to help stabilize the sector. Suggestions include financial aid packages for affected workers, incentives for companies to maintain operations, and efforts to expand exports to other international markets to reduce dependency on the United States.
Experts warn that without urgent intervention, the long-term sustainability of Gujarat’s diamond industry and the livelihoods of thousands of workers will remain in jeopardy.
