Pitch Report: Jewellers seek wide-ranging support from Budget 2025 after last Budget delivered them a rally

Since it is a consumption-driven industry, the jewellery makers are also hoping that there will be tax relief given to buyers.

The jewellery industry's asks from the Union Budget are wide ranging, from asking for further reduction in import duty on gold and setting up a regulator for digital gold, to asking for more attractive terms for gold monetisation scheme.

On February 1, Finance Minister Nirmala Sitharaman will announce the Union Budget 2025-26.

The industry wants the import duty of gold to be cut to 3 percent from the present 6 percent. The duty had been cut significantly in the last Budget from 15 percent, which led to a big rally in the jewellery stocks. Leading jewellery names including PC Jewellers, Kalyan Jewellers and Thangamayil Jewellery surged as much as 167 percent.

The industry is now hoping for a further decrease to make Indian jewellery exports more globally competitive.

Industry players have also put forward an ask for a regulator to oversee digital gold, an asset which is gaining popularity. The asset class allows for small purchases and offers easy convertibility to physical gold.

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In 2015, a scheme was introduced to help investors monetise their physical gold assets. Industry leaders have asked for this scheme to be made more attractive, which they believe will help utilise the locked asset of Indian household gold much more efficiently and help the country decrease its current account deficit.

Since it is a consumption-driven industry, the jewellery makers are also hoping that there will be tax relief given to people to give them more money in their hand. They are asking for lower goods and services tax rates and income-tax slabs that will increase disposable income that is with people.