India’s diamond industry, which exports 90 per cent of the world’s diamonds, has been hit hard by the Corona epidemic. As a result, exports will fall by 20% to 25% this year. This decline is more than the level of recession in FY08. This time, both the demand for diamonds and the supply chain has been affected.
Colin Shah, chairman of the Gems and Jewellery Export Promotion Council, said the decline in exports this year was even lower than 2008 levels. When the world economy went into recession in 2008. Exports of cut and polished diamonds stood at .6 18.66 billion last year. In the current financial year, it may decrease from 20% to 25%. In 2008 the situation was weak enough for only a quarter, then improved. But even after two quarters have passed this year, the situation has not improved. Festivals like Diwali, Christmas and Valentine’s Day are coming.
Demand for diamonds will increase during this time. But it will not cover full-year export figures. According to the Gems and Jewellery Export Promotion Council, diamond exports fell 37% year-on-year in the first six months of 2020. That is, exports in the first six months of this year stood at 5.5 billion.
Lockdown has had a devastating effect on the industry
“The workers have now returned to work in cities like Surat, Mumbai and Kolkata,” said Colin Shah. Which are also working in factories with 70 per cent to 80 per cent capacity. However, the demand and supply chain for diamonds will depend on the impact of the global epidemic.
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