Covid-19: Domestic diamond industry expects revenues to drop by 20-25%

Banks' outstanding loans to the gems and jewellery sector declined 16.8% in February 2020 after growing 2.6% a year ago

With the epicentre of the Covid-19 pandemic shifting from China to the US and Europe, the domestic diamond industry’s revenue in fiscal year 2021 could plunge to a decade’s low, says rating agency CRISIL. The US and Europe are the major export destinations of India’s beleaguered diamond polishing industry. Now, diamond processing units are eagerly awaiting a financial package from banks without which they are not in a position to open units even if lockdown is lifted.

“The industry awaits a stimulus from banks amid the trying scenario,” said Colin Shah, vice-chairman of Gems and Jewellery Export Promotion Council (GJEPC),