Gems and jewellery export in 2020-21 could end up around 20 per cent lower after the Covid-19 pandemic disrupted demand in the first half of the fiscal.
Gross gems and jewellery export from India between April 2019 and March 2020, including cut and polished diamonds, gold, silver and platinum jewellery and coloured gemstones was Rs 2.51 lakh crore, according to data from industry body Gems and Jewellery Export Promotion Council (GJEPC).
“The expectation is exports could end around 20 per cent down which is not bad considering the situation in the months of April, May, June and July of the fiscal. On a month-on-month basis, we are already at pre-Covid level,” said Colin Shah, chairman, GJEPC, on the sidelines of an event organised by the Indian Chamber of Commerce on Saturday.
Shah said that a policy focussing on e-commerce for the gems and jewellery sector is in the works covering aspects such as payments, collection, shipping and returns.
Sale of jewellery through online channels has picked up after retail stores remained shut across the country in the early months of the ongoing fiscal to prevent the spread of Covid.
Last month GJEPC had announced its collaboration with eBay to boost retail exports of gems and jewellery from India.
Exports are expected to grow to $75 billion by 2025 and e-commerce could play a crucial role.
Shah also said that a common facility centre has been built in Bowbazar, Calcutta, to encourage small artisans to avail technology towards building global standard jewellery.
Code of conduct
The World Gold Council is in the process of formulating a code of conduct for the gems and jewellery industry with an objective to put together a structure to enhance trust in the industry. Somasundaram PR, managing director of the World Gold Council, India, said a steering committee has been put together to formulate the code.
“We would soon be reaching out to every jeweller and association as much as is practically possible,” he said at the ICC organised event. He added that there is a need for collecting credible data on the industry which can then be utilised by the policymakers.
Pay from home
Jewellery major Tanishq on Saturday said that it will facilitate buyers in the poll-bound states to purchase jewellery during the election months from their home.
The service,being piloted in Tamil Nadu, Puducherry, Kerala and Bengal, will allow customers who opt for cash payments to complete the payment process with the company facilitating cash collection from home.
Imports fall
Gold imports, which have a bearing on the country’s current account deficit (CAD), fell 3.3 per cent to $26.11 billion during April-February 2020-21, according to the commerce ministry data.
Imports of the yellow metal stood at $27 billion in April-February 2019-20.
The decline in gold imports has helped in narrowing the country’s trade deficit to $84.62 billion during the 11-month of the current fiscal against $151.37 billion a year ago.
India is the largest importer of gold, which mainly caters to the demand of the jewellery industry.
In volume terms, the country imports 800-900 tonnes of gold annually.
