DiamondBuzz

Zero tariffs on Indian diamonds and gemstones will provide major boost

Published

2 months ago

February 7, 2026

673 Views

India and the United States have finalized an interim trade framework that significantly eases the pressure on Indian exporters. A wide list of Indian goods that were facing effective duties close to 50% in the US will now attract only 18%.Gems and jewellery clusters, especially in Gujarat and Maharashtra, employ millions. Zero tariffs in the US market make Indian diamonds and gemstones more competitive against rivals such as Belgium and the UAE.

After a tumultuous period where exports to key markets like the US plummeted by over 60% for cut and polished diamonds, this policy shift is set to restore India’s competitive edge. By removing financial barriers, the government has provided the necessary “booster dose” to revive Surat’s processing hubs, safeguard millions of livelihoods, and accelerate the mission of Aatmanirbhar Bharat.

1. The Crisis: A 60% Decline in Trade

India is the global leader in diamond processing, with 9 out of 10 diamonds in the world being cut and polished in Surat. However, the sector recently faced a “near-collapse” due to:

Punitive Tariffs: Duties in the US—India’s largest market—surged from 0% to 50% in late 2025, making Indian exports unviable.
Export Slump: The impact was immediate, with cut and polished diamond exports dropping from $3.6 billion to $1.4 billion (a decline exceeding 60%).
Socio-Economic Strain: The downturn led to factory closures, wage cuts, and severe distress for the nearly 1 million artisans employed in the sector.

2. The Strategic Breakthrough

The waiver of tariffs is a result of high-level negotiations by the Ministry of Commerce and the Indian Government. Key highlights of the recent trade agreements include:

India-US Trade Pact: Reciprocal tariffs on various goods have been capped or eliminated, with industry leaders optimistic that loose diamonds and colored gemstones will now enjoy zero-duty access under Annexure 3 of the reciprocal list.
European Union FTA: Complementing the US deal, the India-EU FTA has granted zero-duty access for gems and jewellery, helping India diversify its market away from a single-country dependence.

3. Impact on the Sector: Reinstating the Spark

The removal of trade barriers is expected to catalyze a sharp revival in 2026:

Restored Competitiveness: India now stands on a level playing field with competitors like Thailand and Vietnam.
Liquidity & Margins: Lower tariffs ease the strain on working capital and improve margins for MSMEs, which comprise 80% of the industry.
Revival of Rural Economies: The boost will help reopen units in the Saurashtra region, bringing stability to the artisan workforce.

4. Alignment with Aatmanirbhar Bharat

This move goes beyond mere trade statistics; it is a foundational step toward a self-reliant India:

Value Addition: By processing rough diamonds and exporting high-value finished goods duty-free, India maximizes foreign exchange inflows.
Global Hub Status: It reinforces the Surat Diamond Bourse and SEEPZ Mumbai as the world’s primary destination for jewellery manufacturing.
MSME Empowerment: The removal of caps on courier exports and duty-free import of Lab-Grown Diamond (LGD) seeds further empowers local manufacturers to lead in the high-tech synthetic diamond market.

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DiamondBuzz

Rio Tinto shuts Diavik mine operations after 23 years

Diavik has been an inspired collaboration between a mining company and Indigenous partners

Published

7 hours ago

March 28, 2026

JewelBuzz Spread The Buzz

1,819 Views

After 23 years of operations and more than 150 million carats of rough diamonds produced before exhausting its economic reserves, Rio Tinto’s Diavik diamond mine in the Northwest Territories of Canada has celebrated its final day of production.

Rio Tinto Iron & Titanium and Diamonds MD Sophie Bergeron said: “Forty years ago there were very few people who believed there were diamonds in Canada – even fewer could have foreseen how the Diavik story would unfold. To arrive at this milestone has required vision, courage and determination to overcome significant challenges to mine diamonds beneath a frozen lake in one of the world’s most remote and pristine ecosystems.”

“Today, Diavik’s influence stretches into many spheres and over many continents and I am very proud to acknowledge all those people who have contributed to the discovery and development of the mine and the production and marketing of some of the finest diamonds the world has ever seen.”

Diavik mine, comprising four pipes, was discovered in 1991, beneath Lac de Gras, 220 kilometres south of the Arctic Circle. Mining began in 2003 and utilising both open pit and underground mining methods, has produced predominantly white gem quality diamonds and a small proportion of rare yellow diamonds.

Indigenous Government Organisations, government representatives and other stakeholders attended a celebration at the mine, signalling the formal completion of production at Diavik.

Diavik has been an inspired collaboration between a modern mining company and Indigenous partners with an enduring legacy of socioeconomic benefits for the North. RT looks forward to continuing to respectfully reclaim the land in line with our commitments to, and in partnership with, the Government of the Northwest Territories and Indigenous partners.

Planning for Diavik’s closure has been ongoing, commencing before the mine even began production, with closure goals covering safety, land use, landforms, water, biodiversity, community capacity and resource development. Closure activities will extend to 2029, followed by a period of post-closure monitoring.

The final production of Diavik rough diamonds will be polished and sold through 2026 and beyond by Rio Tinto’s international network of customers, including its long-standing Select Diamantaires^.