Anti-lockdown protests in China impacts these key Indian sectors

Citizens’ protest across China against the government’s Zero Covid policy and the spread of the pandemic in the country is likely to impact consumer electronics, gold, diamonds and engineering goods sector in India, The Economic Times reported.

There is a decrease in demand for Indian products, and the supply of components from China is also impacted.

During this time, the jewels and gems industry typically witnesses high orders for cut and polished diamonds, one of India’s major exports. But these have dropped in the past few days, making stakeholders wary.

Executives also told ET that gold demand in India has been tame as protests firmed up the precious metal's prices.

Meanwhile, the electronics industry has seen a delay of about two weeks in the supply of components from Chinese companies, which could impact production in some time.

China shuts for its New Year in the first week of January, which makes this time the best for companies to stock up the components. Indian sectors are bracing for a challenge in case protests last long and supply remains disrupted. However, product availability is unlikely to get affected immediately as brands also have a healthy stock to last them for two months, the report said.

“The agitation in China is going to impact demand in the Far Eastern countries. It has slowed down a bit but if the agitation continues for long, then the January-March quarter of FY23 will not be very bright for the country’s gem and jewellery exports,” Vipul Shah of the Gem & Jewellery Export Promotion Council told ET.

Demonstrations against Covid-19 measures by the government have erupted across major Chinese cities in recent days, in a rare outpouring of public frustration not seen since pro-democracy rallies in 1989 were crushed with deadly force.