Surat Diamond Union Urges PM Modi for Relief as US Tariffs Threaten Industry

Surat | Gujarat — With just days left before the United States enforces a 50% tariff on Indian goods, the Diamond Workers’ Union Gujarat (DWUG) has sounded the alarm over the looming collapse of Surat diamond industry. The union has written to Prime Minister Narendra Modi, demanding an urgent economic package, wage support, and assistance for the families of workers who have taken their own lives amid the prolonged crisis.

In a letter to the Prime Minister, the DWUG highlighted how the Ukraine-Russia war, the Israel-Hamas conflict, and a global economic slowdown have battered the industry for the past two years. Adding to the woes, the G7 ban on Russian diamonds has reduced supply, and now, the US tariff is set to hit India’s diamond and jewelry exports hard.

“Industry on the brink of collapse”

Bhavesh Tank, vice-president of DWUG, minced no words: “The diamond industry has been in recession for a long time, and many workers are unemployed. In just two years, more than 80 workers have committed suicide in Surat. Hundreds are leaving the industry altogether. If the US goes ahead with the tariffs, nearly two lakh jewelers will lose their jobs and five lakh diamond workers will be directly affected. This is not just an economic threat—it will also fuel suicides and crime.”

The DWUG has also reached out to External Affairs Minister S. Jaishankar, Labour and Employment Minister Mansukh Mandaviya, and Commerce Minister Piyush Goyal, urging them to intervene diplomatically and provide immediate relief to safeguard livelihoods.

Surat at the heart of global diamonds

Surat is the nerve center of the global diamond trade, cutting and polishing nine out of every ten diamonds in the world. About 30% of its finished diamonds are exported to the United States. A steep 50% tariff would cripple demand from America, reducing production in Surat and leaving artisans either jobless or forced to work for drastically lower wages.

Tank warned, “If demand from the US shrinks, our workshops will fall silent. Instead of being dependent on one market, India must urgently look to diversify into other countries. The government should also promote domestic demand by encouraging Indians to wear diamond jewelry in place of gold.”

Union demands and government response

Among its demands, the DWUG has sought the Ratnadeep scheme for unemployed diamond workers, the formation of a welfare board, abolition of professional tax, and a rise in wages. Crucially, it has urged the government to provide direct financial assistance to the families of workers who died by suicide.

The union has also petitioned Gujarat Chief Minister Bhupendra Patel, State Home Minister Harsh Sanghvi, Industries Minister Balwantsinh Rajput, and other state leaders to immediately release the pending education assistance of ₹13,500 for the children of diamond workers.

Industry insiders say the crisis has united voices across party lines. Surat MP Mukesh Dalal, Rajya Sabha MPs Govind Dholakia and Shaktisinh Gohil have already raised concerns in Parliament, pressing for urgent government action.

A senior member of the union said, “The diamond industry is the pride of Surat and India. It has weathered many storms, but this time the crisis is unprecedented. Without government support, we risk losing not just jobs but an entire ecosystem of skilled artisans.”