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Mar 30, 2020
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India’s gem, jewellery exports could dip by a further $2.68 billion in FY20

Published
Mar 30, 2020

India’s gem and jewellery export total for the 2020 financial year could drop by a further $2.68 billion (Rs 19,797 crore) due to coronavirus-led international trade disruption, according to the Gem and Jewellery Export Promotion Council (GJEPC).

The GJEPC has pledged to support the Indian jewellery industry but expects exports to be hit hard by Covid-19 - Diamond Producers Association- Facebook

 
“Due to the domestic policy and procedural challenges and sluggish import demand in the world market have recorded a negative growth of (-) 5.53% during April- November, 2019,” read the GJEPC’s recent report on the gem and jewellery sector, published on its website.

“While after the outbreak of Covid-19, declining exports growth doubled from (-)5.53% to (-)11.32% during December- February, 2020.”

As all customs operations in India remain shut as part of the continuing lockdown, the GJEPC expects the trend of negative growth to continue until the end of the 2020 financial year on March 31 and into the 2021 financial year. Jewellery shops remain shut and exporters in limbo as confirmed coronavirus cases continue to rise across the country. 
 
The GJEPC expects India’s gem and jewellery exports to total $37.56 billion in the 2020 financial year, which would represent a 5.5% year-on-year decline from $39.75 billion in the 2019 financial year. This drop would represent a 12% fall to $34.98 billion in value terms, according to the GJEPC.
 
The GJEPC highlighted cut and polished diamonds, coloured gemstones, and imitation jewellery as sectors expected to suffer the highest losses caused by the lockdown. The countries to which Indian jewellery exports have decreased the most are Hong Kong, Turkey, Singapore, and the UK. 
 
The GJEPC expects that the jewellery industry will be significantly effected by the Covid-19 pandemic and is pursuing initiatives to mitigate the financial losses.
 

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