Kolkata, Dec 11 (PTI) The gems and jewellery sector in
the country has reduced its outstanding debt by 26 per cent to
USD 7.75 billion in a period of 18 months ending October this
year, a senior official said on Friday.
The industry has faced difficulties in securing
institutional credit in the wake of a few bank fraud cases,
and the disruption due to the COVID-19 pandemic forced
jewellers to opt for an "efficient management" of their
finances, Gem and Jewellery Export Promotion Council (GJEPC)
chairman Colin Shah said.
"The gross bank debt of India's gems and jewellery
industry has reduced by a healthy rate of 26 per cent from USD
10.44 billion in March 2019 to USD 7.75 billion in October
2020," he said.
According to analysts, profit margins will improve
with more turnover and falling raw material and other overhead
costs.
"No major delinquency has been reported in the
industry during the COVID-19 pandemic, reflecting better
compliance within the sector and growing awareness for self-
regulation," Shah said.
The GJEPC expects that if the current trend of exports
continues, it will end the year with USD 20-21 billion of
shipments.
Exports have slowly been improving, he said, adding
that the total shipment was down by 26.45 per cent in
September and by 19 per cent in October.
The decline was recorded at just 3.88 per cent in
November as compared to the same month last year.
India has the potential to scale up its exports to USD
75 billion and its share in the world market to 15 per cent
from 5.8 per cent at present, the official said.
The USD 36-billion gems and jewellery export industry
employs about 5 million people, contributes 7 per cent to the
country's GDP and 13.75 per cent to the total merchandise
exports in the financial year 2020, the council said. PTI BSM
BDC BDC
