Surat: Imports of cut and polished diamonds into special economic zones (SEZs) surged sharply in March, rising 621% in value from $25 million in 2025 to $181 million in 2026.Compared with the same month of the previous financial year, India imported $170 million worth of cut and polished diamonds into SEZs in Nov 2025, a rise of nearly 450%, and $161 million in Jan, up 339%. Industry leaders say India’s growing role in jewellery manufacturing partly explains the rise seen in 2025. They attribute the earlier surge in imports mainly to global trade conditions, including the US imposing tariffs of up to 50% on Indian products and India gaining a share of jewellery manufacturing from China. However, after Feb, when the US reduced the tariff to around 10% plus product-specific duties, the continued increase in imports points to possible unauthorized practices, a top diamantaire said. “If there is a rise of above 600% in import of cut and polished diamonds in March, it is unusual and it hints at something fishy. It must be verified by central agencies,” said a leading diamond manufacturer on condition of anonymity. “At the end of 2025, the rise in cut and polished imports was due to the US tariff, but now there is no 50% tariff, as the US tariff has been greatly reduced.” Industry executives said the rise in imports towards the end of 2025 was linked to the US tariff that came into force in Aug. Diamond and jewellery companies manufactured gold jewellery mounts in the US and brought them to SEZs in India for diamond setting. Both locally manufactured diamonds and imported polished diamonds were used. Certain qualities of diamonds not cut and polished in India but in centres such as Antwerp were imported. These diamonds earlier went to China for jewellery manufacturing but are now being brought to India for setting before the jewellery is sent back to the US. By doing so, the diamonds attracted a duty of around 6% instead of 50%. “Higher imports of cut and polished diamonds in SEZs at the end of 2025 are because of their use in jewellery. Jewellery mounts manufactured in the US are brought here and sent back after setting diamonds. By manufacturing the jewellery mount in the US, it was a made-in-US product. When brought here for diamond setting, the manufacturer not only avoided the tariff but also the 6% duty on the whole piece. Since the jewellery is made in the US, they needed to pay duty only on the diamond,” said Dinesh Navadiya, chairman, Indian Diamond Institute. However, with imports continuing even after the tariff rollback, industry leaders have called for a probe. “If there is a significant rise in imports of cut and polished diamonds, it should be inquired into. If some firms are involved in unscrupulous practices, it harms the entire industry that is doing fair business,” Navadiya said.
