Covid-19 Impact! Is diamond business staring at yet another pandemic-induced hit? Zee Business gives a ground zero report!

The current COVID-19 situation in the country has once again put the traders into concern. The traders are concerned about the impact of the pandemic on their business. The biggest concern is how the work will be done if the number of artisans decrease. The demand may diminish in foreign markets as well as they will also be severely impacted if the problem persist for long . The traders expect governments to take a lenient view before undertaking any restrictions.  

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The traders are concerned over the fact that if the business environment deteriorates, the demand will be affected and then employment will also be affected. Zee Business correspondent Subodh Mishra takes a closer look at the diamond business in Mumbai from the ground.

At least nine lakh artisans were involved in major centres like Mumbai, Surat in the gems and jewellery business, last year, this report states.  Out of them, only seven lakh diamond cutting artisans returned to work this year.

While carving these diamonds is a very difficult job, a large number of artisans are involved in the work of polishing diamonds and give them attractive shapes. The latest crisis of corona infection has once again worried people associated with the business.

The report informs that exports of USD 39.70 bn was made in gems and jewellery sector in 2018-19. The figures declined to USD 35.50 bn in 2019-20. It further declined to USD 25.60 bn in 2020-21. For 2021-22 (up to November), the exports stand at USD 26.04 crore.

India is the world's largest centre in terms of diamond cutting and polishing. India has about 90 per cent stake in diamond cutting and polishing. In such a situation, the impact of the crackdown in India is possible on diamond business all over the world.