India hit by Slow China Recovery
July 08, 24
(IDEX Online) - China's slow recovery from the COVID-19 lockdowns is a major factor in India's declining diamond exports, says Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC).
"We're battling weak demand, particularly due to China's slow recovery from COVID-19. As a result, demand continues to fall," he told Reuters. China accounts for around a third of India's polished diamond exports.
India's exports of polished diamonds suffered a further drop in May, down by almost 15 per cent to $1.47bn.
The GJEPC is urging the Indian government to intervene and allow direct sales of rough diamonds in SNZs (Special Notified Zones), rather than just viewing sessions, as is currently the case.
It is also calling for a re-introduction of the diamond imprest license to ease the movement of cut and polished diamonds across borders, and a reduction on gold, silver and platinum duty (currently 15 per cent, 10 per cent and 12.5 per cent respectively) to flat rate of 4 per cent.
Pic shows Vipul Shah.