Thursday, January 21, 2021

Bright future for India in gems, jewellery trade amid US-China trade war

- Advertisement -

Bright future for India in gems, jewellery trade amid US-China trade warKolkata, July 24 (PTI) With the USA revoking the preferential trade status of Hong Kong earlier this month, India sees brighter future for its gems and jewellery exports, a senior jewellery export council official said on Friday.

Gems and Jewellery Export Promotion Council (GJEPC) officials said with China imposing the national secuirty law on Hong Kong, the USA has given indication of raising duty on goods from there to 7.5 per cent from 3.3 per cent.

Without going into the nuances of the US move, I feel it will possibly create opportunities for India in gems and jewellery trade,” GJEPC chairman Colin Shah told PTI.

For USA, Hong Kong and China are the fourth largest destinations for importing gems and jewellery after India, France and Italy.

READ ALSO:  Sensex trades 1,000 pts higher after FM announces relief package

Hong Kong and China exported gem and jewellery worth USD 980.85 million and USD 2622.19 million respectively to the US in 2019.

“The ending of the preferential treaty as per the new order with HK would open new business avenues for India. The manufacturing business has the potential to witness a shift to India from China,” Shah said.

“India possesses the natural benefit of ready availability of raw material, manpower and skill sets, a sector with 5 million workforce … It (end of preferential trade status for Hong Kong) is an opportunity to take a quantum leap to become the global leader and a trading hub in the gems and jewellery,” Shah said.

However the mathematics of benefit for gems and jewellery trade for India may not be as simple as Hong Kong and China are also important destinations and nearly 27 per cent of exports are directed to that market which contains diamonds and gemstones which are used as raw materials for studded jewellery exports to the US. Many diamond and jewellery companies of India have their offices in Hong Kong and the US move is likely to impact their businesses too.

READ ALSO:  LAC heats up as India, China take diplomatic route
READ ALSO:  Soaring High: Green shoots visible in Aviation, says DGCA

According to GJEPC, India has exported gem and jewellery worth USD 10.48 billion in 2018-19 and USD 9.17 billion in 2019-20 to the USA, which is 26 per cent of overall gems and jewellery exports from India. Thus US shares a larger pie for the gems and jewellery consumption from India. PTI BSM KK KK

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News


Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

UP man complains Mirzapur maligns district, SC notice to Amazon Prime

New Delhi, Jan 21 (IANS) The Supreme Court on Thursday issued notice on plea of a Mirzapur resident complaining against the web series Mirzapur...

Near-100% Return: Sensex soars from 25,600 to 50K in 10 months

Mumbai, Jan 21 (IANS) As the Indian equity indices logged new highs with the BSE Sensex hitting the 50,000 mark for the first time...

India 5G smartphone shipments to hit 38 mn units in 2021

New Delhi, Jan 21 (IANS): A decline in the price of 5G-ready smartphones will take the shipments of 5G handsets in India to 38 million...

Raging Bull: Sensex crosses 50K, global cues, budgetary hopes power ascent

Mumbai, Jan 21 (IANS) Positive global cues and expectations of healthy quarterly results along with that of a supportive Union Budget FY22 powered the...