For Kalpesh Patel, it may be Diwali, the lights festival that was celebrated throughout India, has brought the spotlight to the eight -year -old diamond unit.
The 35 -year -old employs about 40 workers who convert raw diamonds into completely polished jewels for export at the small factory in Surat, a city located in the West Indian state of Gujarat.
His work has survived several speeds of speed in recent years. But Mammoth, US President Donald Trump 50 percent customs tariff He said that imports from India may be the final nail in its coffin, and it is part of the already troubled natural diamond industry.
“We still have some requests for my diwali and we will try to complete it,” he told Al -Jazeera.
Diwali, which can be said that the largest festival in India, scheduled to be held in late October this year, usually witness the local sales of most commodities. “But we may have to close the work even before the festival, as exporters may cancel requests due to high definitions in the United States,” Patish said.
“It has become increasingly difficult to pay salaries and keep other expenses with decrease orders.”
It is among the 20,000 young and medium merchants in Surat, known as the “Diamond City in India”, which was cut together and polished 14 out of 15 natural diamonds that were produced globally.
The United States is the largest export market. According to the GJEPC and Jewelery Export Council, the Indian Summit on Industry, the country exported the 4.8 billion dollar gemstones to the United States in the fiscal year 2024-25, which ended in March. This is more than a third of India’s total exports of polished and polished diamonds, at $ 13.2 billion during the same period.
Demal Shah, a source of diamonds in Kolkata, told Al Jazerera that orders had already started canceling. “The buyers in the United States refuse to empty the products that are shipped, citing high tariffs. This is the worst stage in my two -decade -long career.”
The United States imposes a penalty
25 percent of the mutual tariff for all Indian goods, which Trump announced on April 2, entered into force on August 7, after talks between Two countries He failed to achieve a commercial deal by that time. Negotiations are continuing.
Meanwhile, on August 6, Trump announced an additional tariff of 25 percent, as the total tariff rate reached 50 percent. The additional tariff that will enter into force as of August 27 as a punishment for the continued purchase of Russian oil in India, where the US President is trying to push Moscow to accept a ceasefire in Ukraine.
As for the gemstone industry, which has already faced a 2.1 -percent tariff exist, the effective tariff is now 52.1 per cent.
Ajay Srivastava, founder of the Global Research Trade Initiative (GTRI), a business research group, described the Trump’s additional height as action “Hypocrisy”Quoting how the United States itself continues to circulate with Russia, and how China – the largest oil buyer in Russia – faces any similar punishment.
“Trump targets India out of frustration because it refused to hit the American line on the Russian-Ukraine conflict, and its refusal to open the agricultural and dairy sector,” he added, referring to commercial talks and continuous differences on a broader scale on access to more Indian Indian economic sectors.
However, whatever the reasons for Trump’s tariff, they are already hurting the diamond industry, bleeding several times.
Diamond sector severely hit
More than two million people work in the cities of diamond and cutting in Surat, Ahmedabad and Rajkot in Googa-and many have already suffered from salary cuts in recent years, first due to the Covid-19s, then Russia’s full invasion of Ukraine.
“The epidemic led to an economic slowdown that affects the international markets in Hong Kong and China,” Ramish Zelerea, head of the Diamond Workers Union in Googa, told Al -Jazeera. Western ban on Raw diamond imports from Russia This was added due to the war of Russia, Ukraine, and a group of 7 group on Russia also on our actions.
Russia was historically a major source of raw diamonds.
Zilriya claimed that 80 diamond workers have died due to suicide over the past two years due to this economic crisis.
He said: “The situation in the international market led to a decrease in workers’ wages of nearly 15,000 and 17,000 rupees ($ 194) per month, which made survival difficult in the face of increased inflation. “
Once Trump’s tariff begins completely, Zelaria fears that up to 200,000 people in Googists may lose their livelihoods.
Indeed, more than 120,000 previous workers in the diamond sector apply for advantages. Instead of 13,500 rupees ($ 154) promised to support their families, in May by the state government for those who have lost their jobs due to turmoil in the sector in recent years.
But the customs tariff, the epidemic and the war are not alone responsible for the crisis: Diamond implanted in the laboratory You eat slowly in the market of their natural counterparts.
Unlike Natural (diamonds), diamonds implanted in the laboratory are not abolished but were manufactured in specialized laboratories and are only 10 percent of that natural. It is difficult even for a seasoned laboratory definition, as with Salim, the The The The The Sierat of the Shyrat.
Export
In the fiscal year 2024-25, India imported raw diamonds worth $ 10.8 billion, which represents a decrease of 24.27 percent from $ 14 billion imported in 2023-24, according to GJepC statistics.
The exports of the broken natural diamonds and the institution witnessed a similar decrease of 16.75 percent, as exports decreased to $ 13.2 billion in 2024-25 compared to $ 16 billion in the previous year.
“This step (definitions) will have long -term repercussions on the Indian economy that may disrupt the decisive supply chains, stop exports and threaten thousands of livelihoods. We hope to obtain a positive reduction in customs tariffs; otherwise it will be difficult to survive.”
Rajish Rukdi, Chairman of all jewelry in all parts of India and Jewelry (GJC), a national commercial union for this industry.
“The United States has about 70,000 jewelry who will also face a crisis if jewelry becomes expensive,” Rukkdi added.
A local solution?
Traders say that the need for the watch is to increase domestic demand for diamonds and diversify new markets.
Radha Krishna Agrouwal, director of Narayan Das Saraf jewelry in Varanasi, in the northern state of Uttar Pradesh, said that the strongest local market “will not only contribute to the local economy, but will also create job opportunities for several thousand people.”
He said that the customs tariff can prove “a blessing in camouflage” if it ends up reducing the accreditation of the gemstone industry in India “on other countries.”
Bhansali said that the market of gemstones and local jewelry was growing, and is expected to reach 130 billion dollars in the next two years, up from 85 billion dollars at the present time. Industry is also looking for new markets, including Latin America and the Middle East.
Amit Kour, head of the Jewelry Manufacturers Association in Sorat, said that gold is already providing an example of a strong local market, and it rid the impact of visits on exports.
But at the present time, the diamond sector in India does not have such a shield. Patel, the employer in Surat, said on the threshold of closing the synthesis and cutting unit.
Without help, he said: “You will lose the work forever.”
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