Gems and jewellery exporters are eyeing new markets such as Russia, Brazil, Vietnam, Singapore, France and Italy after the adverse impact of economic slowdown in China and unrest in Hong Kong on shipments in this financial year. Exports of gems and jewellery fell 4.66 per cent year-on-year in April-November 2019 and the trend is likely to persist in the rest of the current fiscal.

“At this juncture, the trade has to explore newer markets,” said Colin Shah, vice chairman, Gem and Jewellery Export Promotion Council. “For cut and polished diamonds countries like Russia, Brazil, UK, Vietnam, Singapore, France, Germany and others can be explored. For gold jewellery countries like UK, France, Qatar, Australia and Thailand are emerging as new destinations.” India’s exports of gems and jewellery are largely concentrated in the United States, UAE and Hong Kong which together account for as much as 80 per cent of the shipments.

The tariff war between the US and China affected India’s diamond exports since much of the raw material is first exported to China for making jewellery or wholesale trading. From China these products find their way to the US. Since the US reduced its purchases of a number of Chinese goods and also increased tariffs, India’s gems and jewellery sector suffered as well. Shah said that for coloured gemstones the UK, UAE, Germany and Singapore can also be considered.

“There is a need for innovation in products according to the needs of the younger generation. Focused effort is also required to upskill the existing manpower so that they can use of latest technology, make designer jewellery and increase their productivity,” he said.

This financial year has seen an estimated 15-20 per cent job losses in the diamond cutting and polishing centres of Surat and other smaller centres amid a demand slowdown. Imports of rough diamonds fell 16 per cent during April-November 2019 to Rs 60,103.09 crore from Rs 71,523.30 crore a year ago.