Tariff Turmoil: Gujarat's Diamond Industry Faces Challenges

The diamond industry in Gujarat, known as the world's largest hub for cutting and polishing diamonds, is facing significant challenges due to new US tariffs. These measures are expected to impact Indian exports, with the US constituting 40% of India's trade in this sector, according to industry experts.

Industry leaders are hopeful for a temporary impact, citing the US's high demand for diamonds. Dinesh Navadiya, former regional chairman of the Gem and Jewellery Promotion Council, highlights how the new tariffs will increase costs, affecting India's market presence in the US. He suggested exploring trade agreements with countries like the UAE and UK to mitigate the impact.

Jagdish Khunt, president of the Surat Diamond Association, expressed optimism, stating the disruption would be short-lived due to India's dominance in diamond polishing. Meanwhile, Vinubhai Dabhi and Sunil Gandevikar voiced concerns about the rising gold prices further complicating business, although they expect conditions to stabilize within months.

(With inputs from agencies.)