The US recently withdrew the special status granted by it to Hong Kong as a strategic move to retaliate against China and its anti-US propaganda. This step could have a major positive impact on India. It can boost the country’s exports of jewelry to the developed nations such as the united states itself and further assist it to become the largest diamond trading hub in the world.
Currently, India has a world value in this sector as it processes 11 out of 13 rough diamonds mined globally and shifting of potential business plants and offices to India from another renowned hub, Hong Kong would positively affect the country’s status in the diamond processing and jewelry manufacturing business on the global level.
On July 14, the US has withdrawn the special status given to Hong Kong after earlier this month, China declared a national security law in Hong Kong. The United Kingdom, Australia, and Canada followed the US in the pursuit and took the same measures against China and Hong Kong.
Colin Shah, chairman of the Gems and Jewellery Export Promotion Council, or GJEPC said in a statement that This move by the US and the other countries will give birth to new opportunities for the Indian subcontinent in the trade of gems and jewelry. For countries like the United States, India, France, Italy, and Hong Kong and China are the top four destinations of imports of gems and jewelry in that particular order.
The export of gems and jewelry from India has been severely affected because of coronavirus induced Covid-19 disease and the subsequent lockdown to contain the same. The business has not been impacted only by the nationwide lockdown imposed in India but several lockdowns imposed in countries across the world. According to data by GJEPC, Indian exports dropped to $2.7 billion, marking a decline of 55 percent in the first quarter of the financial year 2020-21. Whereas, the exports stood at $6.07 billion in the corresponding period last year.