As the Union Budget 2026–27 draws closer, India’s gems and jewellery industry is urging the government to introduce pragmatic measures to ease cost pressures, support consumer demand, and enhance global competitiveness.
Amid elevated gold prices, shifting supply chains and rising trade barriers, industry leaders say targeted policy interventions could significantly boost growth, exports and employment.
Key among the sector’s expectations is the rationalisation of import duties on gold, silver, platinum and coloured gemstones. With India heavily reliant on imports for raw materials, higher duties inflate manufacturing costs and weaken export competitiveness.
Simplification of customs procedures is another major ask, with the industry calling for faster clearances, risk-based checks and greater use of digital documentation to reduce delays and logistics costs for exporters.
On the domestic front, GST reform remains a priority. “Streamlining GST on jewellery, including a reduction from the current 3 per cent to around 1–1.25 per cent, will lower consumer costs, encourage formal sales and broaden the tax base,” said Mangesh Chauhan, Managing Director, Sky Gold & Diamonds.
The sector is also seeking regulated small-ticket EMI options to support affordability in a high-price environment, along with policy initiatives to mobilise household gold—estimated at nearly 24,000 tonnes—into the formal economy to reduce import dependence.
In addition, industry leaders have called for greater focus on skills development, export infrastructure and technology adoption. Suvankar Sen, MD & CEO, Senco Gold, has also urged greater flexibility for SEZ units to cater to domestic demand.
The industry has further pushed for the early rollout of the Tourist GST Refund scheme at major airports to boost luxury jewellery sales and retain tourist spending within India.
Frequently Asked Questions
Why is the gems and jewellery industry focused on the Union Budget 2026–27?
The industry is seeking policy measures to offset high gold prices, rising costs, and global trade challenges. Targeted budget support could help boost exports, protect jobs, and strengthen India’s competitiveness in global jewellery markets.
What are the key demands related to import duties?
The sector wants rationalisation of import duties on gold, silver, platinum and coloured gemstones. Lower duties would reduce input costs, improve export pricing, and help Indian manufacturers compete with global peers.
Why is GST reform important for jewellery?
Industry leaders are pushing for a reduction in GST on jewellery from 3% to around 1–1.25%. This could lower prices for consumers, encourage formal sales, and support demand at a time of elevated precious metal prices
What affordability measures is the industry seeking?
The sector has proposed regulated small-ticket EMI options for gold jewellery. These would help consumers manage purchases in a high-price environment while ensuring transparency and consumer protection.
How can policy support help unlock household gold?
India holds an estimated 24,000 tonnes of gold in households. Policy initiatives to mobilise idle gold could reduce import dependence, support domestic recycling, and bring more gold into the formal economy.
