Israel-Hamas War: "Manageable Impact on Diamond Prices"
November 26, 23
(IDEX Online) - The impact of the war between Israel and Hamas on both rough and polished diamond prices in India will be "slight, but manageable" according to the Crisil ratings agency.
Israel's own diamond industry saw rough imports plunge 75 per cent in October, in the aftermath of the Hamas massacre that claimed 1,200 lives.
But Israel accounts for only 1.9 per cent of India's total exports and 0.3 per cent of total imports, according to the Directorate General of Foreign Trade.
Polishers have alternative trading hubs, such as Belgium and the UAE, with ultimate customers based in the US and Europe.
"For domestic diamond polishers, Israel is primarily a trading hub," says the report by Mumbai-based Crisil, entitled Middle East conflict: India Inc not in the crosshairs for now.
"Exports to the country were ~5 per cent of total diamond exports from India last fiscal. Additionally, ~2 per cent of all roughs imported are from Israel."
Meanwhile, it noted that since the war started, gold prices had surged by 13 to 15 per cent.
Pic courtesy IDF