Rahul Guha, Director, CRISIL Ratings
“Safe Harbour rates for foreign mining companies selling raw diamonds in India will benefit the domestic diamond sector. 92% of the raw diamonds mined globally are polished in India. With this announcement, import prices for diamonds will reduce, which will have a spillover effect on polishers and exporters, reducing export and retail prices in tandem. This will likely push polishers’ volumes in an otherwise subdued export environment while supporting operating profitability.”
Aditya Jhaver, Director, CRISIL Ratings
“The reduction in basic customs duty on gold to 6% from 10% is expected to provide a fillip to gold jewellery sales, which have been tepid in the recent past because of high prices. This will drive up volumes for domestic gold jewellery retailers including during the festive and wedding seasons.”
