There is a stressful tension in the air. “I am worried. Did we also guess that heavy tariffs will be imposed overnight, we will be diverse. But what should I do now? I have thousands of number Karigars (Skilled artisan) dependent on me. They have been working with me for decades. They have families to take care of home loans to pay. What can I tell them? Is it not our responsibility to take care of them? “Edil Kotwal, CEO, Creations asks a company located in James and Jewelery, Mumbai, a North American trading arm, and has been in business for 25 years.
Concern about the uncertain future is written on his face. He is sitting in his factory in narrow cabin of the Santacruz Electronics Export Processing Zone (SEEPZ) Special Economic Zone (SEZ), which is in a narrow cabin surrounded by other cubals, which are bent on yellow gold quietly. He says that more than 70% of the jewelery manufactured in SEZ is in the US market.
Kotwal is surrounded by steded gold bracelets, necklaces, rings, all are waiting for his approval. But the shine of diamonds in herbs with light in his eyes. “For decades, we have created relationships, completed the American jewelery market, they have to craft the styles liked. You cannot make the same ornament and sell it in another country. Here, the supply pipeline set. But it is now massively disrupted,” they say.
By April 2025, plain gold jewelery and studded gold jewelery were 5% -7% duty. There was no duty on India’s cut and polish (natural) diamonds or lab-go diamonds. From 9 April to 7 August, this year, 10% tariff was imposed on diamonds, Which increased to 25% On August 8, and was Finally increased to 50% From August 27, 2025. More than 30% of India’s cut and polished diamonds are exported in the US for plain and herbs, tariffs are 55% and 57% respectively.
Many types of disadvantages
Buildings on 110 acres of SeePZ are under a heavy security clock. No one can enter without detailed investigation. Thousands of skilled workers run every day to capture small places in narrow cabins. Armed with a magnifying scope, small weight scales and other equipment, they shout slogans in the factory line to create exquisite designs abroad. Thousands of shipments fly daily from this campus to foreign shores. SEEPZ is strategically located close to the International Airport, which is 3 km away.
“Today, I have ready ornaments ready to be ready in my factory, don’t know if the customer will now order it by paying high duties,” says Kotwal. Walmart is the only American importer who is taking orders by paying the new tariff.
Adil Kotwal, CEO of Creation James and Jewelery, is a company located in Mumbai which has been in business for 25 years. He says that after the tariff is imposed, the jewelery supply pipeline in the US has been disrupted extensively. , Photo Credit: SPL System
A top industry body with more than 10,000 members, Mani and Jewelry Export Promotion Council (GJEPC) predicts that the total gems and jewelery exports to the US from India will decrease by 75%. It is currently the US $ 1,1180.45 million. Business can go to other countries. After the US imposed 10% tariffs earlier this year, exports declined by 39%: April -June 2024 to US $ 2,4443.642 million to US $ 1,494.11 million in April -June 2025.
“Countries such as Thailand, Vietnam, Dubai and Türkiye can emerge as alternative sites for America,” Kotwal said while shrinking his shoulders. He angrily asks if he should now cultivate partners in Thailand or Dubai. “Will my workers move to countries? They are all skilled laborers who attract a good salary. What else will they do? Will any other industry absorb them? The government needs to think about them,” they say an intervention.
GJEPC president Kirit Bhansali says that large exporters may be able to absorb shock for some time, but will struggle to remain small and medium enterprises. Most of the sector companies work in this segment. Small enterprises are those with annual trading of not more than ₹ 100 crore, while moderately sized companies are those whose annual turnover does not exceed ₹ 500 crore.
Bhansali, a company in the diamond business, is a partner in Smrit gems, seems to have to find partners in other markets. He says that carat-wise 97% of the world’s loose cuts and polish diamonds come from India. Most of the diamond export houses in Mumbai are commercial networks in Surat, Gujarat, where gems are processed. The trade is tightly controlled by men from families of communities involved in business.
Shine in diamond business
The mood in Diamond Bores, India, Mumbai, is the world’s largest diamond exchange, with 4,000 diamond traders, flat. Many people feel that the American consumer will eventually have to tolerate the shock of price growth.
Dinesh Lakhani has its own office in Bors, which includes tweets of 2 million square feet of Mumbai’s commercial Bandra Kurla Complex. He sits between a small pile of yellow and white diamonds. “These are de-grade diamonds,” they say, stating that D is the highest possible grade for colorless diamonds.
Unlike many others, Lakhani does not feel defeated. “Is this the first time we are facing a challenge? No. Was it the fall of Lehman brothers who led the global crisis in 2008, or Kovid (in 2020), we have always strengthened. I feel proud of our diamond industry. We work hard and get opportunities in challenges,” they say.
A scene of the office of Kiran gems, one of the major manufacturing of natural diamonds in Bharat Diamond Bores. Kirit Bhansali, president of the Gem and Jewelery Export Promotion Council, said that 97% of the world’s loose cuts and polish diamonds come from India. , Photo Credit: Emmanuel Yogini
Lakhani Kiran is the group director of diamonds, the world’s largest exporter of natural diamonds. The network of companies operated by family in both his company and Mumbai and Surat employ more than 50,000 artisans. Every year, Lakhani has exported diamonds worth US $ 300-400 million to the US this year, their orders have dried up.
“Our property is our efficient labor. That’s why we are number one. And we give importance to our property. We will tap in other markets and try to employ our entire team,” they say.
For the reason that Lakhani is so calm because he knows that American importers are being affected and it may cause some fee withdrawal. Inward sources in the industry say that Indian loose diamond exporters worked at a slight difference of 4-6%. They increased by up to 100% for margin double digits and even American importers, as they are jewelery manufacturers using loose diamonds to make pieces. “Our loose diamonds manufacture raw materials for American industry. How will they meet their industry demand?” Lakhani cause. In addition, India traditionally extended a long credit branch for the US, allowing the export to be paid for 180 days.
He says the “glow” of the boors comes from trade in loose diamonds in five decades, with US the Complex House Customs Desk, Bank, Restaurant, Testing Lab and Travel Agents. Wards, like a fort, many gates of the boors have different entry-nicus points for different people. The boors itself surrounded other high security complexes such as consulates, high net worth individuals, diplomatic, corporate offices and houses of Jio World Convention Center.
Anoop Mehta, president of Bharat Diamond Bores and owner of Mohit Diamonds, feels, “If the growth in China is pre-co-coffee, the Chinese market can absorb Indian diamonds.” He says that Borses have exported cut diamonds of $ 10-11 billion this year. “It is below $ 20 billion in 2020 because due to several factors. Of the 4,000 offices, now only 1,200 to 1,500 active exporters work from here,” Mehta says.
Anoop Mehta, president of Bharat Diamond Bores, says that there is an opportunity that the Chinese market can absorb Indian diamonds if its growth goes back on pre-coved time. , Photo Credit: Emmanuel Yogini
GJEPC Executive Director Sabyasachi Ray says there are two ways to see the effect: immediate effect and long -term effects. “The sudden effect has been large and it is difficult to adjust the business. When the disaster strikes occur, there should be relief. Now the regulator is a relief relief. We do not want the dole. He gives an example of this: He gives an example of this: reduce the terms of export on duty-free gold, which requires to import once and is exported within 90 days, after which the item is exported to the item, after which the item is imposed on the item from 9 months. By the month, to give customers something.
Ratna Kalkar of Surat
According to the Vice President of Surat Diamond Workers Union, Bhavesh Tank, about 1 million people have been working in Surat’s diamond industry since the Russia-Ukraine War began, which is under severe stress.
The tank states that the diamond industry of Gujarat has been struggling for more than two years, but the real hit may come around Diwali, when the effect will be felt and the surface of significant job loss. “Since the onset of Russia-Ukraine War, the wages of diamond workers have been cut from ₹ 1,200- ₹ 1,500 to ₹ 800- ₹ 1,000 per day. I urge the government to step into supporting the government. Ratna Kalkar (Diamond artist) In Gujarat, because 9 out of 10 unpublished in India and without diamonds are processed here. ,
Some industry leaders, however, are asking workers to remain calm. “This is a temporary phase. The US has no viable option for loose diamonds,” says Jagdish Khant, president of the Surat Diamond Association. “Yes, tariff is a shock, but they will eventually increase prices in the US, and buyers will have no choice but to absorb the difference, because sourcing cannot be avoided from India.”
In May, the Gujarat government announced a relief package for small units struggling due to diamond artisans and global recession. Around 90,000 workers applied for assistance under the scheme, which provides a child, 13,500 per child to support the affected families. However, by July, only 170 children were assisted.
During the monsoon session of the Gujarat Legislative Assembly, two Congress MLAs questioned the special aid package. In the written reply to the state government Tushar Amarsingh Chaudhary, run by the Bharatiya Janata Party, said that till July, it received 70,254 applications from Surat and 3,926 other applications from Ahmedabad. While the applicants in Ahmedabad have received a total of ₹ 24.03 lakh, workers in Surat are waiting for dyslesal. In his response to Jignesh Mevani, the government revealed that it received 13,462 applications from diamond workers in Botad district and 2,306 other applications from Amreli. However, none of these applicants have been compensated yet.
vinaya.deshpande@thehindu.co.in
(With input from acting Deshpande)
Edited by Sunlini Matthew
