Union Budget 2026 | Surat's Diamond Traders Seek Favourable Policy Changes As Trump Tariffs Hit

Gemstone and jewellery traders in Surat are worried these days because the Trump Tariff, and duties on jewellery, are costing them more. So, traders are hoping that the upcoming Union Budget will include policy tweaks in favour of this sector to get these precious businesses out of the woods. Industry players argue that profit margins in rough diamond trading are much thinner, making the existing tax structure commercially unviable for foreign firms and affecting the sector's overall competitiveness. They are seeking a Belgium-style system known as the Carat Tax, under which diamond traders are taxed using a standardised formula linked to turnover, not actual fluctuating profits. Union Finance Minister Nirmala Sitharaman will present the Union Budget on February 1, and gemstone and jewellery traders in Surat are hopeful for specific relief measures.