Surat’s Diamond Hub Faces New Challenges Amid US Tariff Hike

Surat, home to over 80% of the world’s diamond cutting and polishing, is navigating one of its toughest seasons in recent times. 

The newly built Surat Diamond Bourse remains largely vacant, with fewer than 250 of 4,700 offices occupied, while demand from the US has tanked amid incoming 50% tariffs.

As India’s major diamond trade partner, the US accounts for a huge chunk of Surat’s exports. The latest tariff announcement, the second increase in a month, has disrupted supply chains and triggered order cancellations.

Industry insiders warn that about 200,000 jobs are at risk, spanning artisans to support staff, unless immediate government relief arrives.

While some exporters are looking to diversify markets (Europe, Middle East, Asia), challenges persist. Experts suggest long-term resilience may come from modernizing operations, targeting differentiated quality segments, and seeking policy support.

This circuitous slowdown underscores Delhi-Delhi’s vulnerabilities as global protectionism tests the backbone of India’s export-dependent growth clusters like Surat.