Jewellers find exports tough as bank fraud squeezes credit
Gem and jewellery exports, which account for 16% of India's total merchandise shipments to global markets, have fallen about 2% in the seven months to October. That's after they declined 5% in the year ended March to $41 billion
Mumbai: India’s jewellery exporters expect tighter lending to douse any recovery in overseas sales this year, stoking fears that buyers will shift to rivals China and Thailand. In the nine months since India’s biggest bank fraud came to light, jewelers have struggled to get credit to run their businesses. Borrowing costs have risen as the $2 billion banking fraud allegedly perpetrated by diamantaire Nirav Modi unraveled and the central bank stepped in, banning short-term financing in foreign currency to limit the damage to the financial system. The fallout from the fraud has been worsened by a debt crisis at a local lender.