Hong Kong is a major business hub for the Surat diamond industry, but schools and colleges have been closed there till the first week of March and even the businesses are seeing a dip in view of the outbreak of the novel coronavirus.

The Surat diamond industry is likely to face a loss of around Rs 8,000 crore in next two months as Hong Kong, which is a major export destination, has declared a state of emergency due to the coronavirus outbreak in China, say experts.

Hong Kong is a major business hub for the Surat diamond industry, but schools and colleges have been closed there till the first week of March and even the businesses are seeing a dip in view of the outbreak of the novel coronavirus.

According to Gems and Jewellery Export Promotion Council (GJEPC) regional chairman Dinesh Navadiya, polished diamonds worth around Rs 50,000 crore are exported from Surat to Hong Kong every year.

“That’s around 37 per cent of the total exports from here. Now, due to coronavirus scare, Hong Kong has declared a month-long vacation. Gujarati traders having offices there are coming back to India,” he said.

If the situation does not improve, it will have a huge impact on the Surat diamond industry, which polishes 99 per cent of all rough diamonds imported in the country, he said.

“The Surat diamond industry is staring at a loss of around Rs 8,000 crore for February and March,” he added.