India's gems and jewellery exports are in trouble following the US's imposition of a 50 percent tariff on certain Indian products, effective August 27, 2025. The Gems & Jewellery Export Promotion Council (GJEPC) has requested the government's urgent intervention, seeking immediate assistance, as the tariff has caught the industry by surprise due to its significant reliance on the US market.
Earlier, the Gems and Jewellery Export Promotion Council (GJEPC) noted that several exporters had already begun to increase shipments in anticipation of the tariffs. Also, the sudden shock of the ‘penal duty’ worsened Dubai’s precarious financial situation. The council’s relief measures include extending credit terms from 90 to 180 days, a loan repayment moratorium, payment of 25–50 percent tariff reimbursement (August–December 2025), and increased export promotion through international exhibitions.
Surat, the diamond-cutting capital of the world, is facing the most damage. With almost 90 percent of diamond cutting and polishing worldwide done here, the area is now facing large-scale unemployment. As many as 200,000 workers may lose employment without serious intervention; some estimates say even more.
Gujarat and other states are experiencing severe distress. Surat's Diamond Bourse opened with much publicity but is mostly vacant, with fewer than 250 of its 4,700 offices occupied. Business has reached a standstill as buyers canceled orders and turned to alternatives such as Botswana, which has less US tariff exposure.
The ripple effect extends to families and small businesses. Exporters are experiencing falling orders, increasing financing costs, and heightened doubts about survival, particularly during the festive quarter, which is historically the industry's best-performing quarter.
Severity apart, other plans are underway: exporters are going all out to seek markets in Asia, Europe, and the Middle East. India too is set to step up trade diversification efforts, taking advantage of pacts with the U.K., Australia, and the UAE.
Though there remains hope that the retaliatory tariff will be temporary, exporters and analysts caution that without immediate fiscal and policy relief, India can risk losing its competitiveness and endure a humanitarian cost, one characterized by shattered livelihoods and destroyed industrial momentum.