Bhavnagar Diamond Industry in crisis: 1,500 units remain shut

BHAVNAGAR : Bhavnagar’s Diamond Industry, already battling a prolonged slowdown, continues to reel under pressure as post-Diwali operations fail to pick up. Out of the district’s 3,000 small and large units, nearly 500 units had shut down earlier after Trump’s imposed tariffs, and from the remaining 2,500 units, only around 1,500 have resumed work even after the festival season.

High tariffs, falling demand and rising operational costs have adversely affected the industry. With only 20% business volume visible in the market, Bhavnagar’s daily trade once touching ₹150 crore–₹1500 crore now stands drastically reduced to just ₹20 crore–₹25 crore.

Before the tariff hit, Bhavnagar used to process raw material and export nearly 80% of its polished diamonds abroad. However, the US decision to impose a 100% tariff dealt a severe blow not only to large hubs across the country but also to Bhavnagar’s small and medium units.

Even earlier, nearly 300 factories had shut down, and the tariff pushed another 200 units into closure, forcing thousands of skilled diamond workers to shift to other occupations

Although a marginal revival was seen around the seventh and eighth days post-Navratri, the Diwali vacation halted the momentum. Traditionally, the industry bounces back on Labh Pancham and Agiyaras (eleventh day of Gujarati month), but even those auspicious days failed to revive the market this year.

Adding to the troubles, the rising dominance of lab-grown diamonds is reshaping the industry landscape.

With low-cost synthetic diamonds priced as low as ₹20–₹25 cutting into the market, the impact on sorting and office staff has been severe. As CVD stones require minimal sorting, a large number of employees are finding themselves out of work.

With 1,500 units still shut, shrinking export volumes, and artificial diamonds rapidly eating into the market share, the district’s once-vibrant diamond sector appears to be losing its grip.

Industry voices stress that without targeted export-oriented policies and long-term revival measures, the backbone of Bhavnagar’s diamond economy may continue to weaken in the coming months.