Sun Sep 14 02:33:22 UTC 2025: Here’s a summary and news article based on the provided text:

**Summary:**

India’s gem and jewelry industry, particularly centered in Mumbai and Surat, is facing a severe crisis due to recently imposed, steep tariffs by the United States. These tariffs, escalating to 50% on diamonds and over 55% on jewelry, are threatening exports to the U.S., which constitute a significant portion of the industry’s business. Businesses fear widespread job losses among skilled artisans, many of whom rely on the industry for their livelihoods. While some industry leaders express optimism and seek alternative markets like China, others are calling for government intervention, including regulatory relief and extended payment terms, to mitigate the immediate impact and support struggling workers and small businesses. A government aid package in Gujarat has seen slow disbursal, adding to the anxiety. The future of India’s gem and jewelry exports to the U.S. hangs in the balance.

**News Article:**

**Indian Gem & Jewelry Industry Reels Under US Tariff Shock, Job Losses Loom**

**Mumbai, India – September 14, 2025** – India’s once-thriving gem and jewelry sector is facing an unprecedented crisis following the imposition of hefty tariffs by the United States. The sudden move, which saw diamond tariffs surge to 50% and jewelry tariffs exceed 55%, is threatening the industry’s substantial exports to the U.S. market and sparking fears of mass layoffs among skilled artisans.

“I am worried… What do I tell them?” expressed Adil Kotwal, CEO of Creations Gems & Jewellery, echoing the sentiment of many industry leaders. His Mumbai-based company, like many in the Santacruz Electronics Export Processing Zone (SEEPZ), relies heavily on U.S. demand.

The Gem and Jewellery Export Promotion Council (GJEPC) predicts a staggering 75% decline in gem and jewelry exports to the U.S., currently valued at $1.18 billion. Concerns are rising that business will shift to countries like Thailand, Vietnam, and Dubai.

Kirit Bhansali, chairperson of the GJEPC, acknowledged that while large exporters might weather the storm, small and medium enterprises, which constitute the majority of the sector, face a struggle for survival.

While some, like Dinesh Lakhani of Kiran Diamonds, remain optimistic, citing the industry’s resilience in the face of past crises and the potential for tapping into new markets like China, others are urgently calling for government intervention. Sabyasachi Ray, Executive Director of GJEPC, has pleaded to the government for regulatory relief.

The Surat Diamond Workers Union reports significant wage cuts and potential job losses around Diwali, particularly in the processing hub of Surat, Gujarat, home to approximately 1 million diamond workers. The state government’s relief package for diamond artisans has been slow to materialize, further exacerbating the situation.

Jagdish Khunt, president of the Surat Diamond Association, remains confident of eventual prices increasing for buyers but the pressure is still on India. The industry is now banking on a combination of government support, market diversification, and the potential for U.S. importers to pressure their government for a reduction in tariffs to mitigate the devastating impact on India’s gem and jewelry industry.

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