Why diamond industry is seeking Modi government's aid
What's the story
India's diamond industry is facing a major crisis due to rising tariffs in the United States. The sector, which was already struggling with weak demand from China in early 2025, found some relief in steady US orders. However, this cushion was taken away when US President Donald Trump imposed an additional 25% tariff on Indian goods including diamonds.
Export disruption
Tariff hike's impact on diamond exports
The tariff hike has severely disrupted shipments to one of India's biggest markets, the US. Industry estimates show that diamond exports have nearly halved since the increase. Many exporters have either shut down their operations or switched to lab-grown diamonds with thinner margins. The hardest hit are workers involved in cutting and polishing, especially in Surat, the hub of India's diamond industry.
Urgent plea
Call for government assistance to diamond workers
Kumar Jain, a diamond exporter, has called for government assistance to diamond workers who are suffering due to the crisis. He emphasized that their livelihoods are being affected and they have families to support. Despite India's free trade agreements with countries like the UK and Oman, exporters argue that developing trade in high-value items such as diamonds takes time.
Trade prospects
Hope for Indo-US trade agreement
The diamond industry is hopeful of an early India-US trade agreement that could revive demand from the American market. Until then, exporters say Centre's intervention is critical. They have suggested easing compliance norms and providing targeted subsidies to help businesses survive this downturn. Workers are under the most pressure, facing layoffs and wage cuts during this crisis period.