Trump tariff pushes Surat’s diamond workers into further distress

The diamond sector of Surat, which has been under recession since 2017, has been hit with a fresh blow in the shape of US tariffs.

The new tariff has led to a massive job loss in the sector that has been witnessing brutal job cuts and pay cuts since 2017. As per the Diamond Workers Union Gujarat (DWUG), over one lakh workers have been left without a job since April this year.

“Sixteen diamond polishing and cutting workers have died by suicide since April in Surat alone. Small units in Bhavnagar, Amreli, and Junagadh have shut down, leaving families in acute economic crisis,” said Ramesh Zilriya, President of the DWUG.

Also read: Trump’s sudden tariff hike stuns Surat and Mumbai’s diamond, textile hubs

Series of blows

On August 16, the DWUG squatted in protest at the Varachha cross road, the hub of diamond trade in Surat, demanding justice for the families of the workers who died since April this year.

“The diamond sector has been in recession since 2016. The first blow came with demonetization and then came the GST regime in 2017. Around 70,000 workers lost jobs back then. By the end of 2017, there were further job cuts and small polishing units were shot down, pushing workers to further distress. That year, 45 workers have died by suicide,” Zilriya told The Federal.

The diamond sector was just recovering from the crisis when the pandemic forced the units to shut down. According to the Gem and Jewellery Export Promotion Council (GJEPC), a body that represents diamond exporters across the country, the diamond industry in Surat had incurred a loss of about Rs 30,000 crore by the end of 2020 due to the nationwide lockdown.

Also read: India’s diamond industry in despair as exports hit two-decade low

Spate of suicides

During the period of lockdown, between March 2020 and April 2021, 65 workers died by suicide in Surat while seven died in Amreli and two in Bhavnagar.

“When the lockdown was lifted, we were hopeful of getting our jobs back. Most of us were surviving on loans we had taken from local moneylenders. However, only 50 per cent of the workers got their jobs back. Many of the workers joined at half the salary. We all felt so helpless,” shared Hari Maraj, a member of DWUG and a diamond polisher.

“Earlier, an experienced diamond worker would get anything between Rs 550 and Rs 750 and a newcomer would get anything between Rs 350 and Rs 500 per day. Since 2021, we are being paid an average salary of Rs 300 to Rs 450 per day,” added Maraj, who was left without a job for almost a year post the pandemic.

Also read: Surat diamond workers protest for pay hike and relief package

Loss of markets

Dhirubhai Savani, a diamond trader of Surat and Secretary of Surat Diamond Association (SDA), said the industry was first hit by recession during the 2008 global economic crisis. Since then, it has been one blow after the other, with no opportunity for the traders to recover from the losses.

“After the lockdown was lifted, the market in China was slow due to the impact of the pandemic. So, traders began to depend on markets in Europe, the Middle East, and the USA, which became our biggest markets. But then came the wars in the Middle East and in Russia Ukraine, and impacted our business further. Now the new tariff will break our backbones completely,” he said.

“Before 2008, more than 15 lakhs workers were employed in Surat alone. Now, there are around 7 lakh workers,” he added.

Also read: Cong flags suicides by diamond workers in Surat, says govt must protect them

Workers in distress

According to DWUG data, over two lakh workers lost their jobs between 2021 and 2025.

“Fifty-six workers died by suicide between 2021 and 2022, of which 30 died in September and October, ahead of Diwali. Between 2023 and 2024, 47 workers died in Surat and more than 60,000 workers were forced to return to Amreli, Bhavnagar, and Junagadh, the districts that account for 90 per cent of the diamond workers of Surat,” said Zilriya.

“The plight of workers who migrated back to their home districts is no better. For years, we have demanded financial aid from the Gujarat government, but no one has heard us so far. The union collects money through donation and can help only a limited number of workers. Due to financial distress, workers are pulling their children out of school. Families have no money to eat and are under huge debts they are unable to pay. We feel helpless,” he added.

Also read: Surat Diamond Bourse: World’s largest office building now hosts just 8 firms

Insufficient aid

Notably, in March, the Gujarat government announced financial packages for the diamond sector that included support towards school fees, loan interest, and electricity duty for the traders. The package also included 100 per cent of the school fees for children of jobless diamond workers. For each child, the government had announced a maximum of Rs 13,500 per year to be paid to the school directly.

“How will a child of the diamond worker go to school when the family has no money to eat? We had written to Chief Minister Bhupendra Patel in March 2025, after the announcement raising the issue of the dire condition of workers. We requested direct financial aid for workers but we have not got any response so far,” said Zilriya while claiming that only about 50 workers have got the aid for the children’s fees.