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Escalating Hong Kong protests likely to dent India’s diamond exports further

As per reports, protests paralysed Hong Kong on Wednesday, with police making arrests in a busy business district.

, ET Bureau|
Nov 14, 2019, 09.11 AM IST
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For the April to October 2019 period, overall gross export of gems and jewellery dropped by 5.14 per cent to Rs 1,57,326.03 crore compared with Rs 1,65,845.63 crore in the year-ago period.
Kolkata: Diamond traders in India are worried that the antigovernment protests in Hong Kong will further pull down exports, which have fallen by 17.42 per cent in the first seven months of FY20. The Asian financial centre of Hong Kong receives about 40 per cent of India’s cut and polished diamonds. A portion of this reaches buyers in mainland China.

“Protests in Hong Kong have escalated further, which is going to affect diamond exports to the nation. The movement of diamond has been very slow in past months,” Vipul Shah, managing director of Asian Star Company. Told ET.

As per reports, protests paralysed Hong Kong on Wednesday, with police making arrests in a busy business district. Also, much of the city’s public transport was suspended and all universities closed following sharp clashes overnight with antigovernment protesters.
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Mavji Patel, managing director of Kiran Gems, a leading diamond exporting firm, said that while the protests in Hong Kong are affecting diamond exports from India, the high tariff that the US has put on Chinese gem and jewellery imports is also affecting global diamond trade, of which India is an important partner. “Unless the trade war settles down, exports of gem and jewellery is unlikely to see an upward movement,” Patel said.

Latest figures from Gem and Jewellery Export Promotion Council show that overall gross export of gem and jewellery in October this year declined by 5.49 per cent y-o-y to Rs 24,583.19 crore.

For the April to October 2019 period, overall gross export of gems and jewellery dropped by 5.14 per cent to Rs 1,57,326.03 crore compared with Rs 1,65,845.63 crore in the year-ago period. Export of cut and polished diamonds in October fell by 18.35 per cent while the drop was 17.42 per cent in the first seven months of FY20 to Rs 85,931.99 crore, from Rs 1,04,062.15 crore in April-October 2018.


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