Mixed Response to Brexit in Indian Gem and Jewelry Sector
June 27, 16(IDEX Online News) – The British electorate’s decision to cede from the European Union has created shockwaves across the world, but the response of the Indian gem and jewelry sector has been mixed, according to a report in The Times of India.
While the majority of the industry acknowledges that the immediate short-term impact will be too dampen sentiment somewhat, the expectation is that long-term, the gem and jewelry industry may not be too seriously affected, as exporters deal in dollars, not pounds and euros.
"There is nothing to worry about for the Indian gems and jewellery industry,” said Gems and Jewelry Export Promotion Council (GJEPC) chairman Praveen Shanker Pandya, despite the fact that India exports approximately $11 billion worth of gems and jewelry to the UK.
"London is the world's financial hub,” said diamond industry analyst Aniruddha Lidbide. The Brexit will force many non-European companies to exit. A majority of the diamond mining firms are listed on London Stock Exchange. The gold prices have increased up to Rs 32,000 ($471) per 10 gram. This all indicates a recessionary trend for the already suffering Indian diamond industry."