The impact of the war between Israel and Hamas on rough and polished diamond prices in India will be “mild but manageable”, according to ratings agency Crisil.
Israel’s own diamond industry saw rough imports plummet by 75 per cent in October, following the Hamas massacre that claimed 1,200 lives.
But Israel accounts for just 1.9 per cent of India’s total exports and 0.3 per cent of its total imports, according to the Directorate General of Foreign Trade.
Polishers have alternative trading hubs, such as Belgium and the United Arab Emirates, with end customers in the US and Europe.
“For domestic diamond polishers, Israel is primarily a trading hub,” says the report, titled Middle East conflict: India Inc not in the crosshairs for now, by Mumbai-based Crisil.
“Exports to the country accounted for ~5 per cent of India’s total diamond exports in the last fiscal. Additionally, ~2 per cent of all rough imports are from Israel.”
Meanwhile, he notes that gold prices have risen by 13 to 15 per cent since the start of the war.
