Twin headwinds lash SMEs in gems and jewellery sector: Crisil SME Tracker

The rise in the prices of gold will also curb demand, though it will support the revenues of SMEs

Small and medium enterprises (SMEs) in the gems and jewellery sector are likely to grow 1-3 per cent year on year in value terms in the current fiscal year (FY23), compared with over 45-50 per cent in FY22 (which, in turn, was on a low base of FY21). That’s because they face two headwinds now: the import duty hike of 500 basis points to 12.5 per cent, and supply chain disruptions because of the ongoing Russia-Ukraine war, leading to a moderation in exports.
 

The rise in the prices of gold will also curb demand, though it will support the revenues