Credit risk profile of Indian diamantaires to be stable in mid-term : Crisil

Presenting its outlook on the Indian diamond industry’s performance in the medium term ahead, CRISIL, India's leading Ratings, Research, Risk and Policy Advisory company, noted that "The credit risk profiles of India's diamond and diamond jewellery players will remain stable over the medium term, on the back of steady demand expected in key markets, and improved prices of polished diamonds in 2010-11. Crisil concluded its remarks after a study on 142 players of the Indian diamond industry.

The study also states that polished diamond prices would remain firm in the medium term, as exporters continue to pass on the rise in procurement prices of rough diamonds onto the consumers.

In the wake of increasing global demand of cut and polished diamonds, Crisil notes that “demand from the US market, will be steady, backed by a stable economy, and will result in moderate buoyancy in exports by Indian players over the medium term”. Simultaneously, the agency has also cautioned that the Eurozone crisis could impact gems and jewellery exports.