(MENAFN- KNN India) New Delhi, Aug 27 (KNN) With the US imposing a 50 percent tariff on Indian goods from Wednesday, the gems and jewellery sector - one of the worst-affected sectors - has sought relief from the Reserve Bank of India (RBI) on repayment of bank loans.

In a virtual meeting with RBI officials on Monday, industry representatives flagged concerns over delayed payments from American buyers and potential disruption in supply chains.

“We have said there will be disruption in receiving payments as new goods will not be supplied, and there could be delays in payments. In that case, banks should give us some relief on repayments of loans,” said Kirit Bhansali, Chairman, Gems & Jewellery Export Promotion Council (GJEPC).

“We told them that people in this sector are working very cautiously. We requested some relief from banks in terms of repayments,” Bhansali told Business Standard.

The US is India's single-largest market for gems and jewellery, accounting for about 30 percent - or nearly USD 10 billion - of annual exports.

Bhansali said the sector also requested additional loan facilities to cushion against liquidity stress and raised concerns about job losses.

“A large number of workers will also be affected. There are about 175,000 workers in Jaipur, Mumbai, and Gujarat who have taken loans for houses, vehicles, and education. We have requested that EMIs be elongated and some relief given if they lose their jobs,” he said.

The SEEPZ Special Economic Zone (SEZ) in Mumbai, which employs 50,000 workers, sends 85 percent of its exports to the US and is seen as particularly vulnerable.

(KNN Bureau)

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