Mumbai: The India Union Budget 2026-27 is expected to be presented on 1 February 2026 as India’s economy is forecast to expand by 7–7.5%, driven by resilient consumer spending, infrastructure upgrades, and ongoing policy initiatives.
However India’s Gems and Jewellery sector (G&J) still needs some buster doze to bring it back on the track. We have received some feedbacks from the industry leaders about their expectations from the upcoming union budget.
Ms. Vaishali Banerjee, (Head of Global Market Development and Managing Director – India & Middle East, Platinum Guild International): “As we look ahead to this year’s Union Budget, we respectfully request the Honourable Finance Minister to extend export duty drawback benefits to platinum jewellery, in recognition of the strong export growth potential this category represents.
Global demand for platinum jewellery—particularly from the UAE, the wider GCC, South East Asia and the UK — is rising steadily. Indian manufacturers possess the design capability, craftsmanship and scale to serve this demand competitively. While platinum jewellery exports have grown significantly over the past years, this has been largely driven by SEZ-based players that benefit from duty exemptions, leaving Domestic Tariff Area (DTA) exporters at a disadvantage.
Including platinum jewellery under the duty drawback framework would level the playing field, enable wider industry participation, unlock global demand, stimulate fresh manufacturing investment, support skilled employment, and strengthen India’s position as a global hub for platinum jewellery manufacturing.”
Mr. Colin Shah, (MD, Kama Jewelry): The gems & jewellery sector is crucial to India’s export ecosystem and global competitiveness, and it seeks a prudent mix of tax rationalization, duty structure adjustments, and greater operational flexibility to navigate current headwinds and sustain growth. There’s a need to boost exports and attract FDI by creating a more predictable, low-tax regime for rough diamond miners selling in India. Furthermore, a stable, transparent tax environment for rough diamonds can significantly enhance supply chain efficiency and support downstream value addition.
With tax and duty rationalization for rough and polished stones, there needs to be a simplified and predictable tax regime for rough diamond transactions. Also, rationalization of import duty on cut and polished diamonds and coloured gemstones. Waiver of duties on rough gemstones to improve early-stage cost competitiveness and introduction of an ad-valorem drawback mechanism to enhance export competitiveness.
A tax and duty framework that helps Indian exporters stay price-competitive in the global market. Rationalization and alignment of norms for permissible losses for plain jewellery and casting, with adjustments from the current 1.8% to 4% in line with global industry practices and adjustments in permissible losses for platinum from 4% to 7%, reflecting the technical complexities involved in processing. Permission for DTA (Domestic Tariff Area) sales of jewellery on a duty foregone basis and/or reverse job work allowed post clearance of applicable duties. There also needs to be a reduction in property tax for SEZ units to improve cost-competitiveness and attract investment.
If these measures are taken into consideration, it would help the Indian jewellery and gemstone industry to enhance its export performance, attract higher FDI, and strengthen India’s position as a preferred global sourcing and manufacturing hub. Moreover, the industry will continue to work constructively with policymakers to implement a framework that balances fiscal prudence with the needs of export sectors, enabling sustainable growth and global competitiveness.
Mr. Sachin Jain, (Regional CEO, India, World Gold Council): He highlights the sector’s recent gains, attributing them to last year’s import duty cuts. “The gold industry contributes 1.3 per cent to India’s GDP and employs approximately 2-3 million people. The government’s decision to reduce import duties last July has stabilised official channels, reduced unofficial imports, and encouraged domestic purchasing. However, any increase in import duties in the upcoming budget could reverse these gains, leading to higher smuggling and domestic gold prices. By fostering a synergetic environment, we can ensure the gold industry thrives and contributes significantly to India’s economic prosperity,” Jain explained.
Mr. Suvankar Sen, (MD & CEO, Senco Gold Ltd): “Despite volatility in gold and silver prices, consumer demand in India has remained resilient, though more carefully budgeted, reaffirming gold jewellery’s enduring significance as a symbol of heritage and long-term wealth creation. With gold prices expected to remain elevated, the industry looks forward to policy measures that further enhance affordability and support demand stability.
In this context, initiatives such as regulated small-ticket EMI options for gold jewellery and a review of the current 3% GST structure could meaningfully ease consumer burden and encourage higher participation in the formal market.
We are also witnessing growing traction in old gold exchange, which now accounts for nearly 45% of transactions. Given India’s household gold holdings of close to 24,000 tonnes, continued policy focus on innovative mechanisms to mobilise physical gold can help unlock significant long-term value for the economy.
Additionally, steps that strengthen competitiveness, including a review of the current 6% import duty, along with focused vocational training for karigars, greater adoption of technology, and appropriate flexibility for SEZ units to serve domestic demand, would further reinforce the organised jewellery sector’s contribution to employment, consumption and exports.”
