Gems & jewels export shines despite Covid gloom

MUMBAI: The Covid pandemic has brought a huge bonanza to the gems and jewellery export industry in Mumbai. The 149 gems and jewellery units at the Santacruz Electronic Export Processing Zone (Seepz), the largest manufacturing cluster in the world, have had far better sales than even in pre-Covid times, said Rajeev Pandya, president, Seepz Gems and Jewellery Manufacturing Association.

Any adverse Covid impact was limited to the first five months of the lockdown (Mar- Jul 2020) when exports contracted sharply by around 58%, said Pandya.

Exports of gems and jewellery from Seepz in the first five months of this fiscal year have zoomed after languishing three years pre-Covid and experiencing a sharp decline in the initial months of the lockdown. Exports for five months (April to August 2021) ballooned to Rs 10,325 crore, a whopping 82% increase over the earlier peak (Rs 5,662 crore in 2016-17) and 88% over pre-Covid 2019-20 levels. The top threeexport markets were USA (72%), Hong Kong (6%) and UK (5%).

Pandya said these highly stressful times have meant people wanting to shower affection on their loved ones. “Jewellery is a feel-good factor and is a very personal gift. This emotional need to give has helped increase sales,” he said. Sales have largely been online and exports from India largely cater to the upper middle, middle and lower middle classes. Many manufacturers have shifted their orders to India due to tensions between US and China.

While the ongoing Covid pandemic has resulted in a lot of economic hardship, governments, particularly the US government, have given trillions of dollars in aid to its citizens to tide over the hard times. “Many have used this money to purchase jewellery,” he said.

When the Centre started lifting restrictions in June last year, the industry was quick to approach the state government to allow them to bring their workers to the industrial units and provided exclusive transport to the workers.

The recovery actually started in September last year with the start of the fall season in the US (when demand traditionally rises) when it roughly reached average levels seen in the past four years and since then has been comfortably above levels of earlier years. The second half of 2020-21 saw exports of Rs 11,053 crore, roughly 35% above pre-Covid levels.

Pandya said this year orders have been placed early in March-April and they are still shipping out consignments. “We hope this is sustained,” he said.

Courtesy: Economic Times