In pics | How Jaipur's gems and jewellery business has been impacted due to COVID-19, Indo-China tensions

SUMMARY

Jaipur is famous across the world for its bridal jewellery. While city jewellers sell ornaments made of gold, silver and diamonds, Jaipur is specifically known for its gemstones and kundan meena, polki jewellery.

By Anu Sharma Jul 17, 2020 7:31:31 PM IST (Updated)

Jaipur is a well-known hub for the gems and jewellery business in India. Lakhs of people in the city are directly connected to this economy and the COVID-19 pandemic has surely impacted the industry in a major way. Moreover, the recent tensions between India and China have further impacted the industry. CNBC-TV18's Anu Sharma visited the walled city to find out how badly the jewellery sector has been impacted in the state. Check out these pictures to find out more.

The city is famous across the world for its bridal jewellery. While city jewellers sell ornaments made of gold, silver and diamonds, Jaipur is specifically known for its gemstones and kundan meena, polki jewellery.

Being a highly export-dependent industry, the gemstones business has been hit hard due to trade concerns between India and China.

Jaipur exports gemstones to several countries of which China is one of the main buyers. Imports to China are routed via Hong Kong.

Most establishments are located in the walled city area, which has been badly hit as this part of the city has witnessed the maximum infections over the last three-four months. Moreover, repeated curfews have created a sense of fear among buyers and shop owners and that fear lingers on.

While the COVID-19 situation has been brought under control in Jaipur's walled city area, businesses are yet to take off.

Annual sales of gemstones and jewellery from Jaipur run into thousands of crores of rupees.

Although restrictions on the number of people gathering at weddings has led to steep decline in wedding expenses, this has helped increase jewellery budget by 10-20 percent, which is indeed some good news for the sector.

There is increased focus on digital interaction between customers and jewellers and footfalls to stores have been negligible, with only a few visiting shops to make essential purchases.

Shortage of labour, pending payments, 75-80 percent dip in sales are some of the issues that these businesses are suffering since over three months now.

Given the tepid demand and drop in exports, the sector stares at a bleak future with hope for some revival from November, when the wedding season would kick start.