Coronavirus Cripples Surat's Diamond Business

by GoNews Desk 1 month ago Views 762
Coronavirus Cripples Surat's Diamond Business
The deadly coronavirus, which originated in China’s Wuhan, is creating pandemonium in China and also adversely impacting India’s industrial sector. According to experts, while there has been a loss of 1% of the GDP in China due to this disease, it has now added to the woes of the diamond trade in India.

Merchants in Gujarat’s Surat, famous for its diamonds, are afraid that they could suffer losses of up to Rs 8,000 to 10,000 crore because of the coronavirus.

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A big export market for the diamonds of Surat is Hong Kong, where a medical emergency has currently been declared because of the spread of the coronavirus. Due to this, the diamond industry could suffer massive losses.

Gem and Jewellery Export Promotion Council regional chairman Dinesh Navadia said that Surat used to export polished diamonds worth Rs 50,000 crore to Hong Kong each year, which is 37% of the exports. He also said that 4% polished diamonds are exported to China. The total export to both places is 41%. 

But with the announcement of a month-long holiday due to the coronavirus, Gujarati traders who had offices in Hong Kong have closed them and this is directly impacting business in Surat.

Polished diamonds and jewellery made in Surat are sent to various parts of the world through Hong Kong. But now traders are returning home because business is stalled. Navadia also said that if things don’t improve soon, the diamond industry in Surat will suffer huge losses. 

Surat accounts for the polishing of 99% of rough diamonds imported into the country. If conditions don’t ameliorate soon, the diamond industry could incur losses of thousands of crores in the coming days.