The new wave of COVID-19 has hit India: Sink or Swim for the Gem & Jewellery Industry
Posted by Hari Krishna
May 12, 2021
At this point, it would not be fair to say how hard the COVID-19 outbreak has hit the whole world. As we all very well know that in one way or the other.
While writing this blog, globally, there are a cumulative number of 150,110,310 confirmed cases of COVID-19 and 18,762,976 in India, reported to WHO.
Though many vaccines are available in the market against the virus, the new wave of the COVID-19 has proven more dreadful and intense for many countries like India, Europe, etc., than the first one.
It has shaken the entire world by causing the loss of several lives, and now, a new economic uncertainty looms large as productions, supply chains, and markets have turned volatile.
The global gem and jewellery industry is no exception to this turmoil. India is the heart and soul of the world gem and jewellery industry.
With a 5,000+ year rich legacy in gems and jewellery making, India is the largest manufacturer & exporter of polished diamonds, numerous jewellery handcrafts, a high design aesthetic, etc.
Today with exports of over $35 billion in gems and jewellery, India ranks 5th among the top exporters in the industry across the globe.
But India has become a stalemate due to a new wave of COVID hitting in the country, finally when it started recovering from the first wave.
Let us see in detail what disruptions the new wave of pandemic posed to the gem and jewellery industry of India:
Looking at the gravity of the situation in India, the authorities have implemented stringent restrictive norms like night curfew, partial/weekend lockdowns, etc., on public movement.
Majorly hit by the spiraling cases of COVID-19, Mumbai – the financial capital of India, has seen the closure of Bharat Diamond Bourse – a hub of India’s gem & jewellery exports as a part of #BreakTheChain of virus transmission.
Although as international markets have opened up, the demand for gems and jewellery has increased considerably. As a result, the Indian gem and jewellery industry has flooded with export orders.
Hence, intending to balance the export demand, the authorities have exempted diamond exporters operating from BDB from the lockdown, but only with stricter SOPs to adopt the new normal.
Though these gems & jewellery export operations have resumed with restrictions on the number of people working in the manufacturing units, India’s 1 million gem and jewellery units employ approx 4.3 million people.
So, there may come an imbalance in the demand-supply chain of the gem & jewellery products in the coming days affecting their prices and delay in product delivery.
However, the industry remained resilient and has been gradually moving towards the path of recovery.
Let us see how:
They say those who mastered the art of falling have no fear of rising, which is the best explanation of the Indian gem & jewellery industry during the pandemic.
Wondering how? Well, the whole country has witnessed four months of strict nationwide lockdown in 2020, where manufacturing and export units were closed for functioning to curtail the outbreak.
Yet in those exceptional circumstances, the industry has shown resilience, adapted to the new normal, and attained recovery in gem & jewellery exports to pre-COVID levels in the second half of the year.
Post witnessing a decline in the first three-quarters, the exports in the industry have seen a remarkable growth of 12.73% in the fourth quarter of FY 2020-21.
Finally, when the industry has started showing some signs of recovery, the new wave of outbreaks hits hard in the country.
But the industry has not given up on the situation. It has adopted the new normal with reoriented to working in shifts and working from home.
The Indian gems & jewellery units have assimilated the revolutionary technological equipment into their production units.
So it can effectively craft the intricate pieces in no time, which get exported across various countries.
This digitized way of gems & jewellery designing and technological advancement is the ultimate way for the industry to get back from the new wave of COVID-19 hitting hard in the country.
Well, the gems & jewellery industry has not only survived but thrived through many challenges like economic slowdown, worldwide change in consumer behavior, etc. It will thrive through the pandemic as well.
Hari Krishna Exports is optimistic even though the second wave of COVID-19 is prevailing in the country. With ongoing nationwide #LargestVaccinationDrive, India will come out of this in full flow faster than before.
Talking about the Indian gems & jewellery industry, diamond cutting and polishing is the pulse of the industry, and it will not let the industry sink into the situation.
With the increased demand for diamonds and diamond jewellery from all major markets (especially the USA and China) and considering the upcoming wedding season in India, HK believes that the Indian diamond industry is expected to witness improved business.
This way, the Indian diamond industry will lead to marginal growth for the gems & jewellery industry, assuming that there would not be any complete lockdown in the country.
However, we strongly feel that it is time to stay connected to our customers and community, and the digital medium is a better way to achieve this, as digital is a new way of doing business in the new normal, just like we, at HK, do.
HK has constantly stayed in touch with the HK Family, consisting of its employees, customers, stakeholders, and well-wishers, during this time of uncertainty through social media and other digital mediums.
Besides, HK has extended financial and medical support to its people and their family members during the lockdowns and beyond.
Also, to keep all of them motivated and encouraged, the founders and directors of Hari Krishna exports have organized several online motivational seminars and vipassana meditation camps.
All these efforts of HK were aimed to support and empower its people while growing as an institution and doing business.
After all, HK is not just an establishment that does only business, but a family that not only works but lives and grows together. And families are there for each other to cope up with any situation.
You know what, when a large family like – HK family of 8000+ people stand together as one during adversities, even the pandemic can not tear them apart.
Visit our website – www.hk.co, to know more about the HK family while
Stay Home, Stay Safe, and Stay Happy!
*[Please note: All the data used in this blog is referred from the GJEPC official reports & website.]
