Exports are down. We are getting enquiries from clients. Clients aren’t able to visit and examine the jewellery in real time and so we are not able to convert clients into that many actual sales. We aren’t too comfortable with conducting business virtually, but the first quarter of 2021 will be good Ashish Kotawala, GDK Jewels Pvt LtdCovid19 has had an impact on global business and thereby Indian economy has suffered huge losses. The gems and jewellery business is trying its best to book best profits – and work doubly hard to rise to its pre-Covid profit levels.

A Good November

Exports of gems and jewellery from India, which polishes about 90 per cent of the world’s rough diamonds, showed a sharp recovery in November. This has undoubtedly provided relief to an industry inflicted by the coronavirus pandemic. Overseas shipments fell about 4per cent from a year earlier to $2.48 billion, compared with a 99per cent plunge at the start of the financial year in April, according to the Gem & Jewellery Export Promotion Council. It was also milder than the 19per cent to 40per cent decline in the prior three months. However, from November, as many as 90per cent of the industry’s workers have come back as business has recovered in the key manufacturing cities of Surat, Jaipur and Mumbai. Still, the industry is not out of the woods and business is expected to come back to its pre-Covid level only once there is a successful vaccine in place. The Indian government needs to reduce import taxes on cut and polished diamonds and precious metals to aid the recovery. Exports during April to November were 44per cent lower at $11.43 billion, and India may ship as much as $9 billion over the remaining months of the financial year. That would result in exports for the year falling by as much as 31per cent from a year ago.

Good Run for Small-ticket Diamond Jewellery

Especially at a time when the whole world has been affected by the pandemic, key concern for the governments of all countries is healthcare and preventing spread of the virus. Owing to which every country outdid itself in imposing travel bans including cargo flights as well. This has adversely affected exports of diamonds all over the world. Informs Ashish Kotawala of GDK Jewels Pvt Ltd,“Exports are down. We are getting enquiries from clients. We do preliminary work over whatsapp and videocalls. We are into high end jewellery. Clients aren’t able examine jewellery in real time and so we are not able to convert clients that many actual sales.” Many businesses aren’t getting new clients. “We aren’t too comfortable with conducting business virtually. The first quarter of 2021 will be good,” explains Kotawala. While Viral Kothari of Kosha Fine Jewels, says, “The only hindrance we are facing is – delays in logistics. Customs is the biggest challenge. Shipments are not being released – the logistics is a big challenge. Uncertain flights schedule is affecting business adversely.”

In case of smaller products however, demand is better than last years. “Export orders are good because we are into small ticket items. Month to month comparison reveals that we are at 120 per cent compared to last year. In Europe, USA and pan- India we are doing well. Eternity bands, circle of love, finger rings, are doing well. The New Year season has increased demand,” informs Kothari.

As exhibitions are cancelled we are facing difficulties in conducting business. People want to examine jewellery closely in real time, they would not want to place large orders for high-end jewellery over the internet – that is a cause for concern Sanjay Shah, Gold Star Jewellery Pvt. Ltd.Macro Policies – Need of the Hour

GJEPC maintains: The successful formulation of an e-commerce policy will herald the dawn of a new era for the Indian gem and jewellery industry. This move opens up a world of possibilities especially for MSMEs, as it will give them a level playing field to begin exports directly to global consumers.

The move reflects the GJEPC’s allembracing and inclusive approach to push for progressive reforms that will help the industry achieve its longterm vision to become the epicentre for worldwide gems and jewellery needs. With a Central Government that is all geared up to facilitate e-commerce for the gem and jewellery industry, the sky’s the limit!

“Policy change assures ease in doing business – it cannot guarantee a major escalation in profits. Business improves because of personal will and demand-supply equation,” explains Vipul Sutariya of Dharmanandan Diamonds Pvt Ltd. Indian government is supportive of the G & J business. All the same explains Sanjay Shah of Gold Star Jewellery Pvt. Ltd.,“Export orders are coming from the USA. Internet is surely a way out – but real business takes place in real time and that is something that cannot be done during this crisis time, so we have to wait and make do with whatever we have.”

Promotion Council (GJEPC), in the past few years, has been actively pursuing projects and policies that could lead to a manifold increase in India’s outbound gem and jewellery trade.

Aligning with the Prime Minister Shri Narendra Modi’s vision of making the smallest of towns and villages active participants in the country’s export efforts, the Council undertook a Herculean data-driven approach to identify areas that are actively engaged in the manufacture of gems and jewellery.

Taking the cue from PM’s vision, in 2019, the GJEPC commissioned the National Council of Applied Economic Research (NCAER) to evaluate these key industry characteristics, its competitiveness, and its employment potential.

The pioneering Cluster Mapping study has identified 390 districts as gem and jewellery clusters. It also provides crucial data on the region-specific specialisations in gem and jewellery categories, the skills and technology used, supply chains, and contribution to the economy. The Council is now focused on transforming each of these clusters into self-actualised export hubs.

Export orders are good because we are into small ticket items. Month on month comparison reveals that we are at 120 per cent compared to last year. In Europe, USA and pan- India we are doing well. Eternity bands, circle of love, finger rings, are doing well. Viral Kothari, Kosha Fine JewelsShows must go on

Explains Kotawala, “When we used to have physical shows, we were able to display our high-end diamond jewellery -- clients used to examine fine jewellery and place orders. That kind of thing is missing at present. We are supplying to local stores in North India, as markets are opening.” The situation has improved over the last nine months, but there is surely more scope for improvement. Not many are comfortable buying high-end diamonds over the internet or even after seeing it over Whatsapp etc,” informs Nilesh Chhabria, Finestar. The upcoming show which is scheduled in Vegas in June also may get postponed. “As our business is more digital – sales has improved from July; probably by March 2021 we may procure good sales numbers,” surmises Chhabria.

As exhibitions are cancelled many diamond exporters are facing difficulties in conducting business. People want to examine jewellery closely in real time, they would not want to place large orders for high-end goods over the internet – that is a cause for concern. But currently, nothing can be done about it. “So we are adjusting in the best way we can. We have to reach out to our clients over the internet,” explains Sanjay Shah.

Going the e-Route
Considering the exponential growth in online sales during the pandemic, GJEPC has been relentlessly pursuing for an e-Commerce policy with Department for Promotion of Industry and Internal Trade (DPIIT) and the Ministry of Commerce & Industry (MoC&I), and officials across various Government departments.

A revamped e-commerce policy will help thousands of manufacturers and lakhs of retailers across the 390 G & J clusters in India to utilise e-commerce platforms and reach out directly to overseas consumers. The exponential growth in online sales during the pandemic makes this all the more important and time-sensitive for this trade to benefit from this shift to digital platforms

The GJPEC is expecting a comprehensive e-commerce policy that will encompass ease in processes, hassle-free returns, seamless payments, speed of delivery, minimal cost, etc.The Department of Revenue has recently clarified through a notification dated 27th Nov 2020 that exports of gem and jewellery is permitted in Courier mode under the provisions of Courier import and exports (Clearance) Regulations 1998 and Courier Imports and Exports (Electronic Data & Processing) Regulations 2010.

All the same, year 2021 is predicted to begin bullishly across the world and especially bodes well for the diamond export business in India.