Diamond exporters eye gains from US tax reforms

[vc_row][vc_column][vc_single_image image=”2200″ img_size=”full”][vc_column_text]India’s diamond traders are eyeing an increase in business from the tax reforms in the United States that they believe will lead to an increase in the disposable income of Americans and consequently higher spending on lifestyle products including diamond jewellery.

Simultaneously, the Gem & Jewellery Export Promotion Council has partnered with the Diamond Producers Association comprising leading diamond miners to embark on an international campaign to boost diamond consumption across the globe.

These twin factors have raised expectations among gems and jewellery exporters of a better 2018-19 than the current financial year. Gems and jewellery exports in the first seven months of the current fiscal fell 13.18 per cent in rupee terms over the previous year and 11 per cent in dollar terms, although exports of cut and polished diamonds went up 7 per cent in volume terms to 214.05 lakh carats.

“We are expecting that the $1.5-trillion tax bill of (President Donald) Trump will boost the US economy and increase the purchasing power of Americans,” said Praveen Shankar Pandya, chairman of the Gem & Jewellery Export Promotion Council.

“This will help Indian diamond exports to the US, the biggest market for us. We expect 2018-19 to be a better year for us,” he said.

According to Rapaport Weekly report published on December 7, diamond trading has been steady with a positive momentum ahead of the Christmas-New Year holiday season. It said that dealers are filling local and international orders, and retailers are capitalising on jewellery stacking and layering fashion trend this season.

Courtesy: Economic Times[/vc_column_text][/vc_column][/vc_row]