Surat's Diamond Industry Sparkles Dull Amid US Tariff Turmoil

The diamond industry in Gujarat's Surat is reeling under pressure after the United States imposed a staggering 50% tariff on Indian diamond imports. Diamond traders like Umesh Munjapara and Kiran Suthar report a wave of cancellations for existing US orders and a complete stall in new orders, leaving business operations in dire straits.

With reduced dependency on the US market, traders are now venturing into the domestic landscape and exploring business avenues in other countries. Munjapara highlighted the severe impact of the tariff, stating, "All our orders from America are getting cancelled, and opportunities for new orders have evaporated.... We are actively seeking to broaden our horizons and meet customer demands globally."

To counteract the massive hit to an industry that employs over 800,000 skilled artisans, the Gem and Jewellery Export Promotion Council is turning its focus towards the Middle East, Europe, and Latin America as potential markets. Relief efforts are being discussed with the government, aiming to ease the burden through measures such as interest moratoriums and duty-free sales from Special Economic Zones.

(With inputs from agencies.)