Gems and jewellery sector presses Budget 2026 for GST cut, duty rationalisation and reforms

What the industry is asking for

As the Union Budget 2026–27 nears, the gems and jewellery sector has stepped up its demands for a more supportive tax-and-duty structure. Industry stakeholders are seeking a reduction in Goods and Services Tax (GST), along with customs duty rationalisation and broader reforms they say are needed to improve business conditions.

The sector’s pitch is that lower tax friction and clearer rules can strengthen India’s export competitiveness in a category that remains labour-intensive and closely linked to global demand. With pricing and compliance costs playing a major role in export orders, the industry believes the Budget can provide relief that directly improves margins and order flows.

Export competitiveness and the global backdrop

Industry voices say the gems-and-jewellery business faces ongoing global trade challenges, including shifting consumer demand and tighter conditions in key markets. In such an environment, they argue, India’s policy levers—especially GST rates and import duties on inputs—matter more than ever for maintaining competitiveness.

Stakeholders are also calling for reforms that make it easier for businesses to plan inventory and manage cash cycles, particularly for MSMEs in the sector. The argument is that lower tax costs and simplified policies would help firms scale production and invest in quality, branding and compliance.

What to watch in Budget discussions

With Budget season underway, the key watchpoints for the sector include whether the government signals openness to GST rate changes, any steps to rationalise customs duties on precious metals or components, and whether reforms address export facilitation.

If the asks are accepted in full or in part, the sector expects an improvement in demand visibility and a stronger runway for exports, while also supporting jobs across clusters that depend on jewellery manufacturing and trade.