India's diamond polishing industry is expected to witness a revenue drop of 30-35 percent to USD 14–15 billion in the current fiscal year due to poor demand from the US, EU, and China, rating agency CRISIL said on Wednesday. India exports 75 percent of its polished diamonds to the US, China, and the EU. Rahul Guha, Director, CRISIL Ratings, said, ""Israel imports USD 1.25 billion worth of polished diamonds annually from India. With the country now declaring a war on the Palestinian militant group Hamas, this number could be at risk.” However, there is some increase in demand in the second half of every fiscal year from festivities such as Thanksgiving, Christmas, and the Chinese New Year, but this is unlikely to provide a significant offset this time. According to CRISIL, with the inventory of higher-cost polished diamonds piling up to over four months of sales, the profitability of polishers will be chiseled by 50–100 basis points amid lower retail prices.