“Exports will once more get disturbed if lockdown is imposed by the Hong Kong authorities. We’re seeing that orders from the area have slowed down after the brand new spherical of coronavirus circumstances surfaced,” mentioned Vipul Shah, vice-chairman, Gem & Jewelry Export Promotion Council (GJEPC).
Up to now two weeks Hong Kong has recorded greater than 500 new circumstances, over 400 of them native.
“Main exports have been taking place to Hong Kong and China solely within the present situation. But when a lockdown is introduced, it is going to majorly affect our exports,” mentioned Mavji Patel, managing director of Kiran Gems, a number one diamond exporting agency.
Gem and jewelry exports have been declining from the start of the monetary yr 2019-2020, majorly attributed to varied home in addition to world challenges together with rise in import obligation on minimize and polished diamonds and colored gem stones, tightening of credit score by banks, stringent customs inspection procedures, sluggish import demand and withdrawal of GSP profit by US, amongst others.
The nation’s gem and jewelry exports contracted by 34.72 per cent to $1.64 billion (round Rs 12,333 crore) resulting from a dip in world demand on account of the Covid-19 pandemic, in keeping with GJEPC. Exports stood at $2.52 billion (round Rs 18,951 crore) in June final yr.
Challenges for the sector have turn out to be graver after the outbreak of Covid-19 in China, which grew to become a pandemic and stalled manufacturing and buying and selling actions, cancellation of enterprise occasions, deferment of dedicated order positions, lowered demand and elongation of receivables within the sector.
GJEPC’s Shah mentioned Hong Kong and China collectively account for 30%-35% of India’s gem and jewelry exports. “Gem and jewelry is now going to the US additionally. However it’s principally B2B gross sales. Until retail clients begin shopping for, the demand won’t decide up. Many of the jewelry and luxurious shops nonetheless stay closed.”
In actual fact, a De Beers report printed just lately confirmed that greater than 62% of the US shoppers favor to purchase diamond jewelry at a bodily retailer over shopping for on-line, so long as the setting is taken into account protected.