In 2026, India’s diamond and gemstone industry received a significant boost with the removal of U.S. tariffs on imported diamonds and colored gemstones. This development marks a pivotal moment for the sector, offering an unprecedented opportunity for growth, global competitiveness, and innovation.
A New Era for Diamond Exports
For years, U.S. tariffs had imposed heavy constraints on India’s diamond exports, limiting the global competitiveness of cut and polished stones. With the tariffs lifted, Indian diamonds now have a more accessible pathway into the world’s largest luxury jewelry market. This change is expected to revive international orders, stabilize production cycles, and strengthen profit margins across the value chain—from miners to artisans.
The removal of tariffs also strengthens India’s position as a leader in gemstone cutting, polishing, and jewelry manufacturing. Exporters can now offer competitively priced products, attracting high-end markets and expanding India’s footprint in international trade.
Why Diamonds Remain the Pinnacle of Gemstones
Diamonds are unique among gemstones. Composed entirely of carbon, they are the hardest natural mineral, ranking 10 on the Mohs hardness scale. Their brilliance, fire, and clarity are evaluated using the globally recognized 4 Cs: Cut, Color, Clarity, and Carat.
India has long been a center for the skillful cutting and polishing of diamonds, producing stones that compete with the finest in the world. With new access to the U.S. market, Indian diamonds are poised to regain market share and reinforce India’s reputation for craftsmanship and quality in the global gemstone market.
Lab-Grown Diamonds: The Growing Trend
The tariff removal is not limited to natural diamonds. Lab-grown diamonds, known for their affordability, ethical sourcing, and sustainable production, are also set to benefit. As the global demand for responsible and eco-friendly gemstones rises, India is uniquely positioned to capitalize on this segment, offering products that meet modern consumer expectations while maintaining competitive pricing.
Economic Impact and Regional Growth
The benefits of zero tariffs extend beyond exports. Regional economies, particularly in Gujarat, Rajasthan, and Maharashtra, stand to gain from increased employment and activity in diamond cutting, polishing, and jewelry manufacturing. Ancillary industries, including logistics, packaging, and certification services, will also experience growth.
This development will enhance India’s role in global gemstone trade and reduce dependence on a single market by diversifying its international client base.
Challenges for Sustained Growth
While the zero-tariff policy provides enormous opportunities, the industry must navigate certain challenges. International buyers demand strict compliance with certification and quality standards, making adherence to global guidelines essential. Supply constraints, particularly in rough diamond availability, and competition from lab-grown alternatives require strategic sourcing and innovative production techniques.
Additionally, design innovation, advanced cutting techniques, and brand building will play a crucial role in capturing renewed demand and ensuring long-term growth in competitive markets.
Diamonds Beyond Luxury
Diamonds are more than luxury items; they symbolize resilience, craftsmanship, and enduring beauty. Historically, they have held cultural, spiritual, and financial significance, and today they remain symbols of love, achievement, and status.
India, with its rich heritage in gemology, is uniquely positioned to leverage this new opportunity. From cutting and polishing to jewelry design and export, the country can strengthen its global standing as a center for high-quality diamonds and gemstones.
Diamond Fundamentals: Understanding the Market
Diamonds are assessed using the 4 Cs:
-
Cut determines how the diamond reflects light, affecting brilliance, fire, and scintillation.
-
Color ranges from colorless to shades of yellow, brown, and rare colors like blue, pink, and red.
-
Clarity measures internal inclusions and external blemishes, influencing value.
-
Carat indicates weight, with price per carat increasing with larger stones.
Additionally, lab-grown diamonds offer chemically identical alternatives to natural diamonds, providing ethical and cost-effective options for modern consumers.
Global Market Outlook
The removal of tariffs enhances India’s ability to compete globally. It is expected to:
-
Boost exports to key markets such as the U.S., Europe, and Asia.
-
Stabilize employment in the gemstone sector.
-
Encourage investment in advanced cutting, polishing, and design technology.
-
Promote innovation in lab-grown diamonds and sustainable production practices.
India’s gem and jewelry industry is now poised for a period of growth and transformation, offering new opportunities for exporters, artisans, and investors alike.
Conclusion: A Brighter Future
Zero U.S. tariffs mark a transformative moment for India’s gemstone sector. By improving competitiveness, encouraging innovation, and expanding international reach, this development has the potential to strengthen India’s position as a global hub for diamonds and colored gemstones. With skilled craftsmanship, a rich heritage, and renewed access to high-value markets, India is ready to shine brighter than ever on the world stage.