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While US And China Are in a Trade War, India Sees Shining Future For Diamonds And Gems
- 26th Jul 2020
With the USA repudiating the special trade status of Hong Kong prior this month, India sees more promising time to come for its pearls and adornments trades.
Gems and Jewellery Export Promotion Council (GJEPC) authorities said with China forcing the national secuirty law on Hong Kong, the USA has given sign of raising obligation on products from that point to 7.5 percent from 3.3 percent.
GJEPC director Colin Shah said that without going into the subtleties of the US move, he feels it will perhaps make open doors for India in diamonds and jewelry trade.
For USA, Hong Kong and China are the fourth biggest goals for bringing in pearls and gems after India, France and Italy.
Hong Kong and China traded diamond and jewelry worth USD 980.85 million and USD 2622.19 million individually to the US in 2019.
Shah said that, the closure of the settlement according to the new request with HK would start new business roads for India. The assembling business can possibly observe a move to India from China.
"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 jeweler," Shah said.
However the mathematics of advantage for pearls and gems exchange for India may not be as basic as Hong Kong and China are additionally significant goals and about 27 percent of fares are coordinated to that showcase which contains precious stones and gemstones which are utilized as crude materials for studded adornments fares to the US.
As indicated by GJEPC, India has sent out pearl and adornments worth USD 10.48 billion of every 2018-19 and USD 9.17 billion out of 2019-20 to the USA, which is 26 percent of diamonds and gems trades from India. Consequently, US shares a bigger pie for the diamonds and gems consumption from India.