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Surat’s diamond and textile businesses are likely to be one of the victims of US President Donald Trump’s tariff overhaul.
Due to the 26% tariff imposed on India, Surat’s renowned textile and diamond industries have also come under pressure, causing considerable anxiety among industrialists.
According to textile industrialists, although India’s tariff is lower compared to countries like Bangladesh, Thailand, Vietnam, and China, the garment industry is more prevalent in countries like Bangladesh, Thailand, and Vietnam.
In contrast, India is a leader in MMF (Man-Made Fiber). India’s share in the total MMF imports in the US is 30%. Therefore, the 26% tariff imposed by Trump will have a severe impact on the textile industry.
With the increase in tariffs and inflation, accordingly, exports are expected to decrease.
India exported $ 32.85 billion worth of gems and jewellery in the year 2023-24. Out of this, the share of the US was 30.2%. Hence, it can be said that the maximum export from India in the gems and jewellery sector goes to the US, according to diamond industry experts.
In the year 2014, India exported diamonds, gold and silver worth $11.84 billion. Out of this, the share of US including cut and polished diamonds, lab-grown diamonds, plain gold jewellery, studded gold jewellery and silver jewellery was 13.32%.
Experts believe that not only in man-made fibre but also in the gems and jewellery sector, the maximum export from India is to the US. So the high tariff will have a direct impact on both the industries in Surat. Besides, its direct impact will also be seen on other local businesses.
Surat Diamond Association president Dinesh Navadiya stated that in the year 2023-24, the share of the US in the export of the gem and jewellery sector of $32.85 billion was 30.28%, which is $9.95 billion.