Connect with us

Daily News

Banks increase credit to the gem & jewellery sector by 15% to Rs 627 bn in Mar’21 from Rs 546 bn in July’20



The industry has been able to change the Banks’ perspective towards it and this can be witnessed from the credit increase that happened over the last one year.

21stJune, 2021 Mumbai: The gem and jewellery exports have taken a severe hit due to pandemic in 2020-21, but what the industry has achieved during this period is commendable which would help it further its growth in the long term. The industry has been able to change the Banks’ perspective towards it and this can be witnessed from the credit increase that happened over the last one year. Banks have increased the credit to the gem and jewellery industry by 15% to Rs 627 billion in Mar’21 from Rs 546 billion July’20.

Colin Shah, Chairman, GJEPC said, “With a meagre export turnover of USD 2.51 billion in the month of Sept’20 , the sector managed to achieve a turnover that grew by about 36% to USD 3.42 billion in Mar’21 – being higher than the average monthly export turnover in the last 3 years. We have witnessed robust demand from the international markets. With the pandemic said to be contained in China, and with the US inoculating about 40% of its population, demand from these two countries accounted for 75% of India’s polished diamond export in Q3 & Q4 of FY 2021. In fact, the US retail jewellery sales tripled on M-o-M basis in May’21 and grew by about 45% in comparison to May’19 as a result of the pent up demand and stimulus funds. Increase of credit to the industry from banks is the result of pragmatic decisions taken by the industry during the pandemic. India’s leading diamond-trade organizations called on members to stop importing rough diamonds during Q1 of FY 2021 to prevent an oversupply, which is evident from the plunge to USD 1 million in April’20 from USD 1.50 billion in Feb’20. This voluntary move on part of the importers helped the trade recover from the COVID-19 crisis by avoiding a free flow of rough entering the manufacturing pipeline thereby aiding the trade to optimize their debt levels.”

Miners did the right thing, Colin further added “All global miners suspended sales in the first half of 2020, cut their production plan by 25% to 30% for 2020 and allowed clients to defer their purchases as nations were going into a lockdown leading to closure of retail stores & cancellation of all major trade shows.”

“The Govt. has been very proactive in supporting this labour-intensive industry. Various government schemes including extension of the interest equalisation scheme, positive changes in definition of MSME, emergency credit guarantee schemes, restructuring and other relaxations given to export and manufacturing sector have supported the recovery of business post Sept’20.” adds Colin Shah

Along with the support from the industry stakeholders, the labour-intensive polishing and jewellery units tackled labour migration issues and maintained physical-distancing norms by carrying-out the manufacturing in multiple smaller shifts and by providing safe transport & boarding facilitates.

The trade has proved its resilience to the pandemic driven market dynamics which changed the demand pattern from offline to online mode and priorities of the consumer from luxuries to necessities. However, restrictions on overseas travel and lower spending on hospitality, induced large expenditure on gifting, including diamond jewellery that augured well for India’s diamond exports.

However, due to the second wave and partial lockdowns imposed in our country, the domestic business in the beginning of FY 2022 was impacted. But, with the ramping-up of the vaccination drive, we expect the business & consumer confidence to revive very soon.

The trade began the calendar year 2021 with 10% lower inventory, healthier financials and a consolidated market structure. During FY 2020-21, companies cleared their existing stockpiles and reduced their holding levels which not only improved the inventory management but also helped in optimizing the working capital requirement.

With the support of all the stakeholders, the industry is set to go on growth trajectory as it emerge from the pandemic.

Courtesy: Retail Jeweller India News Service

Continue Reading


  1. Mora

    November 8, 2021 at 4:12 PM

    Hello, i think that i saw you visited my web site thus i came to “return the favor”.I am trying to find things to
    enhance my site!I suppose its ok to use a few of your ideas!!

  2. Elise

    November 10, 2021 at 9:12 AM

    If you would like to take a good deal from this article then you have to
    apply these strategies to your won weblog.

  3. Matilda

    November 10, 2021 at 9:53 AM

    Thanks a bunch for sharing this with all of us you actually
    realize what you are speaking about! Bookmarked. Please additionally seek advice from my site =).
    We can have a hyperlink trade agreement between us

  4. Quyen

    November 10, 2021 at 10:09 AM

    Hey great blog! Does running a blog such as this take a large amount
    of work? I’ve very little expertise in coding but I was hoping to start my own blog soon. Anyhow,
    should you have any suggestions or tips for new blog owners please share.
    I understand this is off subject nevertheless I simply needed to ask.

  5. Tina

    November 10, 2021 at 1:16 PM

    Link exchange is nothing else but it is only placing the other person’s webpage link on your page at proper place and other person will also do similar in support of you.

  6. Noemi

    November 10, 2021 at 2:04 PM

    Hello! Someone in my Facebook group shared this site with us
    so I came to check it out. I’m definitely loving the information. I’m
    bookmarking and will be tweeting this to my followers! Superb blog and
    excellent design and style.

  7. Marsha

    November 10, 2021 at 3:11 PM

    Excellent post. I used to be checking constantly this
    weblog and I’m impressed! Extremely useful info particularly the final part :
    ) I take care of such info a lot. I was looking for this
    certain information for a very long time. Thanks and good luck.

  8. Bertha

    November 10, 2021 at 3:29 PM

    I’m curious to find out what blog platform you have been utilizing?
    I’m having some small security issues with my latest site and I’d like
    to find something more secure. Do you have any solutions?

  9. Sybil

    November 10, 2021 at 4:40 PM

    wonderful submit, very informative. I ponder why the opposite specialists of this sector do not understand this.
    You should proceed your writing. I am confident, you
    have a great readers’ base already!

  10. Fidel

    November 10, 2021 at 5:13 PM

    I will right away take hold of your rss as I can’t to find
    your e-mail subscription hyperlink or newsletter service.
    Do you have any? Kindly let me understand so that I may just
    subscribe. Thanks.

  11. Rowena

    November 10, 2021 at 5:23 PM

    We are a gaggle of volunteers and starting a brand new scheme in our community.
    Your web site offered us with valuable info to work on. You have performed an impressive process and our whole community can be thankful to you.

  12. Wesley

    November 10, 2021 at 5:45 PM

    I think the admin of this web site is in fact working hard for his site, because here
    every stuff is quality based information.

  13. Bernadette

    November 10, 2021 at 8:00 PM

    That is a very good tip especially to those fresh
    to the blogosphere. Brief but very precise information… Many thanks for sharing this one.
    A must read post!

  14. Jesse

    November 10, 2021 at 8:11 PM

    Howdy! This is kind of off topic but I need some advice from an established blog.

    Is it difficult to set up your own blog?
    I’m not very techincal but I can figure things out pretty fast.
    I’m thinking about setting up my own but
    I’m not sure where to begin. Do you have any tips or suggestions?
    Appreciate it

  15. Keisha

    November 10, 2021 at 9:28 PM

    Asking questions are actually nice thing if you are not understanding anything totally, except this post presents nice understanding

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News