India's Natural Diamond Polishing Industry To See Decadal Decline Of $12 Billion: Crisil Ratings

India's natural diamond polishing industry is set to see a decline in revenue to a decadal low close to $12 billion during the current fiscal, according to Crisil Ratings.

Crisil indicated that revenues in the natural diamond polishing industry will decrease for the third consecutive fiscal. With a sluggish demand and falling prices creating a buyers' market, polishers are restricting their purchases of rough diamonds.

Also, miners have cut production helping in the arrest of fall in prices of rough diamonds, the firm said.

According to Crisil Ratings, sluggish demand in the US market caused a fall in India's diamond exports, while there is a growing preference for golden jewellery in China as the yellow metal is now being considered as a safer asset providing better returns amid economic uncertainty.

In addition to this, the youth population in these key export markets is increasingly embracing lab-grown diamonds as limited disposable incomes are constraining discretionary spending, the research firm said.

(With Inputs From PTI.)