India's Surat Diamond Bourse was eerily quiet, with only a few traders still working. The giant complex, billed as the world's largest office complex and larger than the Pentagon, is facing serious challenges.
The business atmosphere continues to be sluggish, and the industry's prospects are bleak and uncertain.
India's diamond exports have fallen to a two-decade low due to weak overseas demand. Now, the high tariff policy implemented by US President Trump may cut off access to India's largest market - the US market accounts for about a quarter of India's annual exports of US$28.5 billion.
The looming US tariffs have shaken the confidence of buyers in Surat. The city known as the "diamond processing capital of the world" is responsible for the cutting and polishing of more than 80% of the world's rough diamonds.
Although small exporters are less able to withstand the impact, some large companies are planning to transfer part of their business to countries such as Botswana with a tariff as low as 15%. India's current 25% tariff rate was doubled on August 27.
Hitesh Patel, managing director of Dimanadan Diamond Company, said the company may increase production capacity if the tariff policy continues. The business expects annual revenue to decrease by 20-25%.
Industry leader Shaunak Parikh pointed out that in response to the slowdown in demand, the entire industry is adjusting operations by reducing working days and working hours.
An exchange official who requested anonymity revealed that the Surat Diamond Exchange has sold more than 4,700 offices, but less than 250 have actually been put into use, and many companies have re-evaluated their plans to move in.
The owner of a Mumbai diamond company, which bought space at the exchange last year, said he has postponed plans to relocate. “US tariffs have already shaken up our business and we don’t want to add the hassle of moving from Mumbai to Surat,” said the owner, who requested anonymity to protect the company’s identity.
Indian Prime Minister Narendra Modi inaugurated the Surat Diamond Exchange in December 2023. Built on 6.7 million square feet of land, the complex actually occupies an area larger than the Pentagon.
Consisting of nine interconnected towers, each 15 stories high, with a gleaming facade and housing banks, treasury and customs offices, the massive exchange aims to become a hub for the global diamond industry.