The Israel-Hamas conflict is expected to impact the trade of gems and jewellery between India and Israel, exporters said on Monday.
Colin Shah, MD, Kama Jewelry, said the war can “adversely” impact Indian exports to Israel.
Total gems and jewellery trade between India and Israel stood at $ 2.04 billion in 2022-23 as against $ 2.8 billion in 2021-22.
“The war situation will further intensify the blow to the trade between Israel and its second-largest trading partner in Asia, India,” Shah said.
Mumbai-based exporter and founder chairman of Technocraft Industries India Sharad Kumar Saraf said the conflict may have an impact on Indian exporters in the short run.
“But if the war escalates, things may get bitter for our exporters of that region,” Saraf said.
GTRI co-founder Ajay Srivastava stated that trade may be seriously impacted if operations at the three largest ports of Israel — Haifa, Ashdod and Eilat are disrupted.
Cut and polished diamonds constitute the highest exported commodity from India to that country. It is followed by lab-grown diamond.
From Israel, India mainly imports rough diamonds.
India’s merchandise trade with Israel happens mostly through Eilat port, located on the Red Sea.
Total India-Israel trade in merchandise and services sectors in 2022-23 is estimated to be $ 12 billion.
India’s merchandise exports and imports from Israel during 2022-23 were $ 8.4 billion and $ 2.3 billion, respectively, leading to a merchandise trade surplus of $ 6.1 billion.
India’s key exports to Israel are diesel ($ 5.5 billion) and cut and polished diamonds ($ 1.2 billion).
Key imports are rough diamonds ($ 519 million) and cut and polished diamonds ($ 220 million); electronics and telecom components like ICs, parts of photovoltaic cells ($ 411 million); potassium chloride ($ 105 million) and herbicide ($ 6 million).
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