High gold prices, weak demand hit gems, jewellery units: CRISIL SME Tracker

CRISIL Research expects the twin blows of high gold prices and weak global demand to hit the gems and jewellery sector hard in the current fiscal year (FY21). Small and medium enterprises (SMEs), which make up 65-70 per cent of the sector, will be particularly impacted.
 

The sector is expected to contract by 35-40 per cent in value terms in FY21, as both domestic and export demand get impacted by the Covid-19 pandemic.
 

Revenues of Indian exporters are expected to be hit by the global growth slowdown, decline in world trade, and postponement of global trade events and diamond and