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The industry may report 13 per cent decline in exports this year: Praveenshankar Pandya, GJEPC Chairperson

The country’s gems and jewellery industry has been severely hit due to a major slowdown in China and Eurozone, said Praveenshankar Pandya, Chairperson of Gems and Jewellery Exports Promotional Council of India (GJEPC) to the Economic Times. He further said, “The current massive downturn in China and Eurozone has severely impacted demand and prices of polished diamonds and finished jewellery. The industry may report 13 per cent decline in exports this year if the government does not support the industry. The industry is going through its worst time and India is not just losing out on exports and its leadership position in the global market, unemployment rate in the country is escalating drastically as well. Due to sluggish market scenario and strong rough diamond prices, industry is facing prolonged absence of real profitability in business. This scenario has resulted in erosion of capital base of many small and medium diamantaires. The sluggish global demand has further created inventory pile up, which is resulting in polished prices falling by around 15 per cent. Sluggish sales and high inventory costs of accumulated inventory are compelling SMEs to shut business operations in recent times, which will have cascading effect on employment scenario.”