Gems and jewellery sector eyes duty cuts, GST relief in Union Budget 2026-27

Jewellery industry calls for lower GST, simpler customs.

• Jewellery sector seeks lower import duties, GST reforms in 2026–27 Budget
• Industry seeks simpler customs, regulated EMI options, and skills development aid
• Push for Tourist GST Refund scheme to boost jewellery sales to foreign visitors

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As the Union Budget 2026–27 approaches, the gems and jewellery industry is looking to the government for a set of pragmatic measures aimed at easing cost pressures, supporting demand, and strengthening India’s position in global markets.

Against the backdrop of elevated gold prices, shifting global supply chains and rising trade barriers, industry leaders believe targeted policy support can have a meaningful impact on growth, exports and employment.

A key expectation from the sector is the rationalisation of import duties on essential raw materials such as gold, silver, platinum and coloured gemstones. Since India depends heavily on imports for these inputs, higher duties directly inflate manufacturing costs and weaken export competitiveness.

Industry participants argue that a review of the current duty structure would help lower input costs, improve pricing power for exporters and enable Indian jewellery manufacturers to compete more effectively with global peers.

Simplification of customs procedures is another major ask. Faster clearances, risk based checks and greater use of digital documentation could significantly reduce delays and logistics costs, especially for exporters operating on tight delivery schedules. Streamlined processes are seen as critical for improving ease of doing business and supporting India’s ambitions as a global jewellery manufacturing hub.

On the domestic front, GST reform remains high on the wish list. "On the domestic front, streamlining GST on jewellery, including a reduction from the current 3 per cent to around 1-1.25 per cent, will lower the cost to consumers, encourage formal sales, and broaden the tax base," said Mangesh Chauhan, Managing Director, Sky Gold & Diamonds.

With consumers becoming more price sensitive amid high gold and silver prices, industry leaders see tax rationalisation as a key lever to support demand stability.

Affordability focused measures are also being closely watched. The sector has sought regulated small ticket EMI options for gold jewellery, which could help consumers manage purchases better in a high price environment. Such initiatives are expected to support steady demand while ensuring transparency and consumer protection.

Another important area of focus is the mobilisation of existing household gold. With India estimated to hold nearly 24,000 tonnes of gold in households and old gold exchange now accounting for a significant share of jewellery transactions, the industry is looking for innovative policy mechanisms to bring more idle gold into the formal economy. This could unlock long term value, reduce import dependence and support domestic recycling.

The sector is also seeking greater policy support for skills development and infrastructure. Focused vocational training for karigars, investment in export cluster infrastructure and incentives for technology adoption are seen as essential for improving productivity and quality standards. In addition,  Suvankar Sen, MD & CEO, Senco Gold called for greater flexibility for SEZ units to cater to domestic demand, which could help optimise capacity utilisation and support employment.

Finally, there is a push for the early rollout of the Tourist GST Refund scheme at major airports. The industry believes this move could help retain luxury jewellery spending within India and boost retail sales to foreign tourists.

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