US-China trade war: Bright future for Indian gems and jewellery industry


PTI, Jul 24, 2020, 5:00 PM IST

Kolkata: With the USA revoking the preferential trade status of Hong Kong earlier this month, India sees a 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 security law on Hong Kong, the USA has given an 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 said.

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

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 the ready availability of raw material, manpower and skill sets, a sector with 5 million workforces… 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.

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 the US shares a larger pie for the gems and jewellery consumption from India.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Cases of Breast Cancer are on the rise in India, says oncologists at Apollo Cancer Centres

Bajaj Auto sales at 3,47,004 units in June

Kumble murder case: Police arrest two accused, lookout for others

Municipal authorities must safeguard citizens from street dog attacks: K’taka HC

Govt hikes gold import duty to 15 pc

Kundapur: Fearing failure in exams, girl commits suicide

Mangaluru: HC stays defamation lawsuit; issues notice to Dr Kakkilaya


Related Articles More

Jackson sworn in, becomes 1st Black woman on US Supreme Court

Police fatally shoot patient who had gun at Texas hospital

US newspapers continuing to die at rate of 2 each week

New Zealand designates Proud Boys a terrorist organisation

French court convicts 20 in deadly 2015 Paris attacks

MUST WATCH

Heavy Rain Mallar Urdu school Damage

Heavy rain at kaup area

Banana cultivation : Success story of a farmer

NEW BULLETIN 30-06-2022

Heavy Rain at Dakshinakannada


Latest Additions

Kundapura: Man duped of old gold jewellery, cash advance at jewellery store

Driver dies after beer-laden truck crashes into electric pole; locals flee with bottles

Cases of Breast Cancer are on the rise in India, says oncologists at Apollo Cancer Centres

SC slams Nupur Sharma for Prophet remark, says it led to unfortunate incidents in country

Bajaj Auto sales at 3,47,004 units in June

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.