New Delhi, March 13 -- The United States has removed a 25% tariff on Indian gems and diamonds, a move that is expected to bring much-needed relief to the country's diamond polishing industry. The decision is likely to support export growth and improve demand for Indian cut and polished diamonds in the American market.

With the reciprocal tariff on Indian gems and diamonds now effectively reduced to zero, diamantaires are eyeing a 6-7% year-on-year revenue growth for the sector in fiscal 2027 to $15.0-15.5 billion, according to Crisil Ratings.

However, the credit rating agency cautioned that the escalating conflict in West Asia could limit the extent to which diamond polishers benefit from the tariff relief, as geopolitical tensions may ...