Gems and Jewelry Export Promotion Council (GJEPC) officers stated with China imposing the nationwide secuirty regulation on Hong Kong, the USA has given indication of elevating responsibility on items from there to 7.5 per cent from 3.Three per cent.
With out going into the nuances of the US transfer, I really feel it’ll presumably create alternatives for India in gems and jewelry commerce,” GJEPC chairman Colin Shah instructed PTI.
For USA, Hong Kong and China are the fourth largest locations for importing gems and jewelry after India, France and Italy.
Hong Kong and China exported gem and jewelry price USD 980.85 million and USD 2622.19 million respectively to the US in 2019.
“The ending of the preferential treaty as per the brand new order with HK would open new enterprise avenues for India. The manufacturing enterprise has the potential to witness a shift to India from China,” Shah stated.
“India possesses the pure good thing about prepared availability of uncooked materials, manpower and ability units, a sector with 5 million workforce … It (finish of preferential commerce standing for Hong Kong) is a chance to take a quantum leap to develop into the worldwide chief and a buying and selling hub within the gems and jewelry,” Shah stated.
Nevertheless the arithmetic of profit for gems and jewelry commerce for India is probably not so simple as Hong Kong and China are additionally essential locations and practically 27 per cent of exports are directed to that market which comprises diamonds and gems that are used as uncooked supplies for studded jewelry exports to the US.
Many diamond and jewelry firms of India have their places of work in Hong Kong and the US transfer is prone to affect their companies too.
Based on GJEPC, India has exported gem and jewelry price USD 10.48 billion in 2018-19 and USD 9.17 billion in 2019-20 to the USA, which is 26 per cent of total gems and jewelry exports from India. Thus US shares a bigger pie for the gems and jewelry consumption from India.