Low demand and the GST gives little hope for gem and jewellery export recovery

A lack of overseas demand for Indian gems and jewellery driven by slow economies abroad coupled with GST tax increases has driven down exports and they remain unlikely to recover in the near future.

Gem and jewellery exports are currently decreasing - Hazoorilal- Facebook

In the first half of the financial year 2018, overseas shipments of gems and jewellery decreased and, although it is predicted that they will rise again in the second half of the financial year, it is not expected that they will recover completely. The Chairman of the Gem and Jewellery Export Promotion Council (GJEPC), Praveenshankar Pandya, recently stated: “We saw a decline of ten percent in overall gems and jewellery exports in the first six months of this financial year, mainly on account of economic slowdown in overseas market, [the] introduction of VAT in Dubai, and [the] implementation of GST in July.”

In order to address the situation, the GJEPC organised India International Diamond Week in Mumbai which began on November 7 and is currently running. The event aims to encourage overseas buyers to buy from India and business from countries including Lebanon, China, Russia, Saudi Arabia, the US, and South Africa are currently participating in the event.

Pandya, who explained the aims of the event, said: “Buyer-seller meets will further promote business ties between Indian players and international buyers. Buyers are taking advantage of this platform because they can concentrate on existing and new customers… The diamond trade is a community in itself. It is, therefore, important to collaborate (among its members) so as to create and nurture sustainable growth.” Despite low export rates, the GJEPC is taking measures to invigorate the market in the hopes that the second half of the financial year will see it recover as much as possible. 

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