NEW DELHI: Exports of gems and jewellery, a major component of India’s total exports by value, may fall by as much as 25-30 per cent during the current financial year, according to the Gem and Jewellery Export Promotion Council (GJEPC). The reason, the association says, is the complete washout of business in the first quarter due to pandemic-related disruptions, with much of production taking a hit.
“There was a complete shutdown during the first quarter of this financial year (April-June) due to complete lockdown in India, as well as the importing countries in order to curb the spread of the pandemic. Even though things are improving, the washout of the first quarter will have a cascading effect on the entire financial year,” said GJEPC Chairman Colin Shah.
He was speaking to reporters after the inauguration of the first virtual buyer-seller meet for loose diamonds, a first the council has been forced into due to the unprecedented pandemic. Shah noted that the next two quarters would continue to be challenging due to continuing manufacturing restrictions.
“Overall, we are expecting 25-30 per cent decline in gems and jewellery exports in 2020-21,” he said. While the demand is expected to rebound this year, manufacturing is seen as the primary challenge, since many workers have not returned to their jobs.