US Tariff Slash Set To Revive Surat’s Diamond Industry & Boost Exports

Surat: Surat’s diamond industry is set for a major revival after the United States reduced import tariffs on Indian goods from 50 per cent to 18 per cent, a decision expected to benefit lakhs of workers and boost India’s diamond and jewellery sector. The U.S. is India’s largest market for diamonds, accounting for nearly 30 per cent of total exports in the sector, valued at around USD 10 billion annually. Diamond exports alone contribute USD 7-8 billion.

Last year, high tariffs had severely affected exports, which fell 44.4 per cent between April and December 2025, from USD 6.95 billion to USD 3.86 billion. December alone saw a drop of more than 50%. Dinesh Navdia, Chairman of the Indian Diamond Institute in Katargam, said the tariff reduction was a relief for the industry. “High tariffs had created uncertainty for lakhs of workers in Surat’s polishing units. Margins were under pressure, and cash flow had stalled. The new 18 per cent tariff will infuse fresh energy into the industry.

Exporters can now offer more competitive prices and regain orders, strengthening medium-term growth and employment,” he said. Navdia added that previous trade agreements with the European Union and the US tariff cut would provide substantial markets for India’s diamond and jewellery sector. He said the reduction would encourage American buyers to return to Indian diamonds and jewellery, sustaining demand for natural stones alongside competition from lab-grown diamonds. Shanti Dhanani, Treasurer of the Surat Diamond Association, said the cut would create significant employment opportunities, especially in the CVD (Chemical Vapour Deposition) and HPHT (High Pressure, High Temperature) diamond segments.

“Approximately 8,00,000 to 10,00,000 artisans work across Surat’s factories. The tariff reduction will strengthen livelihoods and help revive closed units in rural areas of Saurashtra,” he said. Damji Mavani, former secretary of the Surat Diamond Association, called the reduction a “booster dose” for the industry, resulting from negotiations between Prime Minister Narendra Modi and US President Donald Trump.

Dhiru Savani, Secretary of the association, said it would increase foreign exchange earnings and attract further investment, providing long-term stability to the sector and supporting India’s economy. The tariff reduction is expected to revitalise the Surat-Mumbai diamond hubs, increase exports, and secure the future of India’s diamond industry, providing fresh momentum for growth and employment in the sector.

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