Mumbai terror attack may impact trade

The gems and jewellery trade is speculating whether the terror attack will adversely affect business. But most jewellers believe that there will be no deep repercussions on business by the dastardly terrorist act. Vasant Mehta, Chairman of GJEPC, opines that “there may be no direct connection, but it will hurt the economy. The flow of tourists will be reduced, thus there will be fewer purchases of jewellery. The export market will be affected, but on the domestic market we see no impact. GJEPC is grieved to learn about the death of the brave policemen and innocent people who have lost their lives in this attack.” Echoing his views, Saket Mehta, Partner, Sur Gems, indicates that “there may be some effect in the short term but after some time the buyers will be back again. I also feel that the domestic market will not be affected.”

Saunak Parikh, Director, Mahendra Brothers, supports this view and points out that “tourism will be the biggest loser, not the jewellery industry. Even after 9/11 in the US there was no long term effect. We have also observed that after such traumatic events people want to gift something to their loved ones and diamonds are preferred gifts.”

However, Rajiv Jain, Vice Chairman, GJEPC, disagrees and states emphatically that “this kind of terrorism will damage our business.” Speaking from Jaipur, he indicates that terrorism will severely damage the jewellery business “because what happens in Mumbai resounds through the world. I feel that the effect of this will be felt for at least the next six months. Like Mumbai, the tourist flow to Jaipur will dry up and this is going to dent our business.”