Know how US-China trade war has benefited Surat traders
Surat: On one hand, COVID19 led to shut down of many industries and businesses while on the other hand exports of gems and jewelry has doubled. India has received an order for gems and jewellery this Christmas due to a trade war between the US and China.
India is a manufacturing hub for polished diamonds. While China and Hong Kong are the jewellery manufacturing hubs. In the US, the gems and jewellery sector accounts for more than 70 per cent of the world’s consumption. More than 70 per cent of jewellery made in India, China or Hong Kong is made in the US. The way the trade war between China and America went on during the Covid19 outbreak period, the US has increased tariffs on its products by 3 per cent. This means that any product made in Hong Kong and China, whether it is diamond jewellery or anything else, has become 7 per cent more expensive by imposing a 7 per cent duty on it.
While no duty has been imposed by the US on whatever is exported by India. Due to which it has directly benefited the gems and jewellery industry of India. To date, within India, and especially in the city of Surat, there have been six gems and jewellery manufacturing companies in the Sachin Special Economic Zone in the last three months. There are more than 200 companies operating on a local basis. These people are getting very good orders in the international market. Which includes most American orders.
India’s cut and polishing business in November 2019 exports was $ 620 million. However, even during the difficult period of Covid19, the exports of gems and jewellery increased to $ 1192 million in November 2020. From the beginning of the Corona period, India began to benefit from the gems and jewellery industry.