China, India demand to keep diamond prices firm: CRISIL

CRISIL believes that diamond prices, which have witnessed a sharp rebound over the past year, will remain firm over the medium term because of increasing consumption in the emerging markets of China and India and recovery in the US market.

CRISIL believes that diamond prices, which have witnessed a sharp rebound over the past year, will remain firm over the medium term because of increasing consumption in the emerging markets of China and India and recovery in the US market. Moreover, supply of rough diamonds is expected to tightly match the demand. The credit risk profiles of 114 CRISIL-rated diamond and diamond jewellery players are expected to remain stable on the back of buoyant demand outlook.

China and India, the fastest growing markets in the world, are likely to continue with their double-digit growth in the medium term. The markets in China and India, have grown by around 25 per cent in 2010, and contributed to around 20 per cent of the global consumer demand for diamond jewellery in 2010, as against 12 per cent in 2008.

Says Mr. Gurpreet Chhatwal, Director, CRISIL Ratings,