On October 17th, the Gem and Jewellery Export Promotion Council (GJEPC) hosted an interactive discussion with senior bankers in Mumbai to review the current market perspective and explore opportunities for further engagement with financial institutions.
The well-attended event, which had over 75 attendees, began with an introductory talk by Mr. Vipul Shah, who set the tone for the day by emphasizing the necessity of solid banking ties in the growth of the gem and jewellery business.
Mr. Vipul Shah stated that ongoing support from banking partners will be even more important during these difficult times. He stated that the purpose of this meeting is to increase industry collaboration with banking partners, discuss common issues, and address the financial challenges impeding our sector’s growth. He stated that both parties can work together to find solutions that benefit both the sector and financial institutions, assuring a stable and successful future for everybody.
In his keynote talk, Mr. Vipul Shah provided a detailed analysis of the industry’s current state. He discussed the industry’s issues, including the fall in demand in key regions such as the United States and China, as well as geopolitical concerns regarding trade. Despite these challenges, he emphasized the Indian gem and jewellery industry’s resilience as well as growth potential in the Middle East, which are aided by the India-UAE Comprehensive Economic Partnership Agreement. He also discussed the government’s recent policy changes, GJEPC‘s role in advocating for industry requirements, and the need of maintaining strong partnerships with the banking sector to navigate financial issues and generate future growth.
Mr. Pranay Narvekar, Partner, Pharos Beam Consulting LLP, offered a comprehensive analysis of the diamond industry perspective, emphasizing possible prospects and difficulties, as well as the role of finance in promoting growth. Mr. Narvekar stated that, despite recent setbacks, the gem and jewelry business is projected to stabilize. Retail diamond demand recovery, lab-grown diamond impact, and supply chain efficiency will all define the industry’s future. While the industry has experienced changes, its financial position has improved. Understanding these fundamental aspects is critical for businesses and lenders functioning in this industry, he stated.
Mr. Niraj Shah, Country Head of Corporate and Institutional Banking at IndusInd Bank, presented a banker’s viewpoint on the gem and jewellery market. He added that the future of the gem and jewellery sector is bright, but it will require a collaborative approach with a focus on innovation, sustainability, and ethical standards. Working together, the industry can address present difficulties and create a more resilient, competitive, and sustainable future.
A panel discussion with industry representatives and bankers followed, allowing for open discourse and idea sharing. Mr. Russell Mehta, Managing Director, Rosy Blue (India) Pvt. Ltd., Mr. Ashish Mehta, Partner, Kantilal Chhotalal, Mr. Niraj Shah from IndusInd Bank, Mr. Raj Bahadur Trivedi, General Manager, State Bank of India (SBI), and the moderator, Mr. Maulik Shah, Co-founder and CEO of Almus Risk Consulting, took part in the discussion.
The panel discussed the current situation and potential of India’s diamond and jewellery sector. Bankers and industry executives agreed that the gem and jewelry business has previously suffered issues and will recover within the next 1-2 years. They also addressed potential in new markets and across industrial segments.
In the Q&A session that followed, it was revealed that the Export Credit Guarantee Corporation of India Limited (ECGC) is evaluating GJEPC‘s request to increase the credit guarantee maximum for bankers beyond the Rs. 100 crore cap.
Mr. Shaunak Parikh finished the discussion by reiterating the Council’s commitment to preserving open channels of communication, fostering openness, and strengthening relationships between the gem and jewellery industry and the banking sector.