Budget 2026: Gems and jewellery industry seeks GST cut and customs duty rationalisation
Ahead of the Union Budget 2026–27, India’s gems and jewellery sector has pitched for lower GST, changes in import duties and policy reforms aimed at improving export competitiveness and easing compliance pressures.
Industry pitch ahead of the Union Budget
As pre-Budget consultations and lobbying intensify, India’s gems and jewellery industry has urged the government to consider reforms in the Union Budget 2026–27, including GST reductions and customs duty rationalisation. The sector argues that tax and duty tweaks could help improve price competitiveness in global markets and also support domestic demand by reducing the overall cost burden on consumers and manufacturers.
What the sector wants changed
The primary asks highlighted in reports include rationalising customs duty structures and reviewing GST rates for jewellery, along with broader measures that could simplify compliance and reduce friction in the supply chain. Industry stakeholders often point to working-capital constraints and the need for smoother import-export processes, especially for a sector that depends heavily on precious metal and gemstone inputs, and where small changes in duty can meaningfully alter margins.
Why exports and jobs are part of the argument
Gems and jewellery is a major export segment and also employs large numbers through a network of artisans, polishing units and small workshops. The industry’s case typically links tax changes to stronger export orders, more stable production, and better resilience against global demand swings. If reforms reduce costs, companies claim they can scale up value-added exports, improve formalisation and keep employment steady in clusters that depend on jewellery manufacturing.
What to track from the Budget
The Budget outcome to watch will be any change to GST slabs relevant to jewellery, adjustments in import duties on gold, diamonds or intermediates, and any compliance or policy announcements aimed at exporters. Even if major rate cuts do not occur, the sector may look for targeted relief such as duty rationalisation, support for export financing, or procedural simplification that reduces turnaround times and uncertainty.