US events may hit gem trade

By Mohammed Iqbal

JAIPUR, SEPT. 13. The devastating terrorist attacks in the U.S. have had their reverberations in Rajasthan with the business circles fearing that the two huge foreign exchange grossing sectors - gems and tourism - may be hit hard.

The Pink City is the leading gem export centre in the country with the U.S. alone accounting for nearly half of the Rs. 900- crore annual exports from here. More importantly, most of the business takes place in the pre-Christmas sale season beginning late September.

The gem and jewellery exporters are nervous over the now near certain cancellation of orders from the U.S. Many of the jewellers staying in New York to look after the business there have informed their associates here that they would be returning soon as the situation is expected to worsen further with the U.S. almost certain to avenge the attacks.

``If tension escalates for the next fortnight, there will be recession caused by delay in exports and cancellations, leading to a direct loss of nearly Rs. 100 crores,'' Mr. Ajay Kala, secretary of the Jaipur Chamber of Commerce and Industry, told TheHindu today.

The events in the U.S. had an immediate impact on the gems and jewellery sector here with a large number of jewellers cancelling their visits to Thailand and Hong Kong to participate in the annual exhibitions of gems. The Thailand fair was scheduled to begin in Bangkok today. Apart from a sense of insecurity in travelling abroad, the jewellers are also disappointed as American buyers would not be visiting the exhibitions.

Americans constitute a significant portion of foreign tourists coming to various towns in Rajasthan. With the peak tourist season about to begin, there is fear of large scale cancellations - especially group tours. Even from the European countries, the tourist arrivals are likely to be poor as the terrorist strikes have shocked the entire world.

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