India’s Diamond, Jewellery Exports Likely to Fall by 10-15%

SEATTLE (Scrap Monster): India’s diamond and jewellery exports are likely to witness significant decline during the initial quarter of 2020. The exports are feared to slow down considerably due to market shutdowns in Hong Kong and China- the primary markets of exports from India.

According to industry participants, China is the main market for exports of diamonds and jewellery made from gold and diamond. Also, Honk Kong is the intermediate hub for exports to Western destinations. The market shutdowns in these countries on account of coronavirus outbreak are likely to lead to 10-15% decline in exports during Q1 this year, equivalent to nearly $1.18 billion by value.

The recent signing of the U.S.-China trade deal had boosted the industry sentiments. The exports had started showing signs of recovery. However, with the outbreak of the virus, the exports are likely to remain sluggish, observed Anoop Mehta, President, Bharat Diamond Bourse. The industry was on hopes of a robust 2020, after an unstable year of activity in 2019, he added.

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Incidentally, India accounts for almost three-fourths of global diamond exports. Also, almost one-third of India’s gems and jewellery exports uses Hong Kong as the transit point.