Mumbai: India’s Finance Minister Mrs. Nirmala Sitharaman presented the union budget for 2026-27 yesterday in the parliament. Provisions of which are welcomed by India’s gem & jewellery (G&J) trade.
Mr. Rajesh Rokde, Chairman, All India Gem & Jewellery Domestic Council (GJC):
“The Union Budget 2026–27 reflects a stable and sensitive approach towards the Gems & Jewellery industry. The absence of any increase in customs duty or GST, continued policy certainty, strong MSME and cluster support, ease-of-doing-business measures, and litigation-reducing income-tax reforms together provide confidence to the trade and reinforce the Government’s recognition of our sector as a key contributor to employment, exports, and economic growth.”
Mr. Avinash Gupta, Vice Chairman, All India Gem & Jewellery Domestic Council (GJC):
“The Gems & Jewellery trade welcomes the Union Budget 2026-27. The absence of any increase in customs duty, combined with strong MSME support, improved access to finance, simplified income-tax compliance, and enhanced ease-of-doing-business measures, will enable jewellers across the value chain to plan confidently and focus on sustainable growth amid global uncertainties.”
Mr. Colin Shah, MD, Kama Jewelry:
SEZ reforms – Primarily, the introduction of a special one-time facility for SEZ units to supply to the DTA at a concessional rate of duty is a welcome move, and will help in enhancing capacity utilization and realizing the Indian government’s vision of making the country a diamond trading and manufacturing destination in the world. The support for SEZ units selling into the domestic market, along with continued backing for diamonds and lab-grown diamonds, gives a real boost to manufacturing and trade. This along with a faster customs clearance and a single digital window, doing business is all set to become easier.
Stability in import duties – Keeping the import duties unchanged for gold and silver will give the sector a much-needed stability, thus driving sustainable growth.
Ecommerce – the new growth engine: The removal of INR 10 lakh cap on courier exports is a major move that empower India’s small businesses, artisans, start-ups and jewellery exporters to gain advanced access of global markets through e-commerce value chain. This will bolster shipments of high value gems & jewellery products through the global courier route. Additionally, the improvisation of procedures for handling rejected and returned consignments through tech-led mechanism will further aid easing of operational hurdles for exporters.
MSME boost – The focus on improving liquidity for MSMEs with measures like linking TReDS with GeM, mandating it for CPSE purchases, and introducing credit guarantees will make financing faster and cheaper. For MSMEs in the gems and jewellery sector, this will help ensure timely payments and smoother cash flow, ultimately boosting manufacturing and trade.
The STT Impact – Contrary to all growth measures, the hike on Securities Transaction Tax on Futures to 0.05% will have a negative impact on the broking margins and ultimately reflect F&O trading volumes. With increased cost, the brokers will be under pressure and trading will become costlier, ultimately resulting in slowing down of trade activity.
Dr. Renisha Chainani, Head of Research, Augmont:
“Union Budget 2026–27 emphasizes “action over rhetoric”, aiming for sustained ~7% growth with moderate inflation, fiscal discipline and stability. It prioritizes people-centric development, trust-based governance, ease of doing business and structural reforms. Major thrusts include boosting domestic manufacturing (semiconductors, electronics, chemicals, textiles), MSME support through funds and TReDS, services-sector expansion (health, tourism, IT, AVGC), and agriculture income enhancement. Public capex is scaled up via infrastructure corridors, waterways and urban growth hubs, alongside energy security and green initiatives. Fiscal consolidation targets a 4.3% deficit, with reforms in taxation, customs, financial markets and social welfare to support inclusive “Viksit Bharat.”
The Bullion industry expected support to ease cost pressures from high gold and silver prices, including import duty reductions on gold, cut & polished diamonds, coloured gemstones, and GST rationalisation (e.g., from 3 % to ~ 1–1.25 %). It also sought simplified customs procedures, duty-drawback reform, and policy steps to help position India as a global diamond trading hub and boost exports and competitiveness. In the actual Budget announced, there were no major sector-specific tax cuts or import duty reductions announced specifically for the gems & jewellery sector.”
Mr. Suvankar Sen, MD and CEO, Senco Gold and Diamonds:
The Union Minister’s emphasis on long term macroeconomic stability, infrastructure development, MSME growth, and the push toward technology and AI adoption, alongside support for skill development, women empowerment, research and development, and knowledge hubs, reflects thoughtful long range policy direction. This kind of structural planning strengthens consumer confidence and enhances productive capacity across sectors. Even in the absence of direct incentives for the gold industry, measures supporting exports, imports, global market integration and SEZ ecosystems point to a forward looking and self reliant economic vision.
We appreciate the government’s long term thinking, particularly the continued thrust on inclusive growth. As infrastructure and income levels rise, consumption is expected to deepen significantly across tier 2, tier 3, tier 4 cities and smaller towns, which will be a key driver for organised retail and jewellery demand. For a company with a strong business focus and manufacturing base in eastern India, the emphasis on skilling and regional development is especially encouraging, as it will help expand the workforce and bring more professionally trained talent into the sector.
With gold and silver markets witnessing strong investment interest ahead of the Budget, the absence of specific sector measures also creates an opportunity for closer industry government collaboration on future frameworks that encourage innovation, value addition, and formalisation. Overall, this is a strategically oriented, long term Budget that supports sustainable and broad based economic growth.
Mr. Jignesh Mehta, MD and Founder, Divine Solitaires:
“While the Finance Minister’s long-term focus on infrastructure development, skill development, and AI/technology-enabled growth elevate the manufacturing ecosystem at a broader level, the absence of key announcements for the natural diamonds industry and the Gems & Jewellery sector was a disappointment.
We were expecting more targeted reforms, given India’s position as one of the largest diamond manufacturing and processing hubs globally. While macro-level investments in skills, labour and technology are welcome, sector-specific policy support would have gone a long way in strengthening competitiveness, employment and long-term value creation for the industry.”
Mr. Kaushlendra Sinha CEO, Indian Association for Gold Excellence and Standards (IAGES):
“The Union Budget’s focus on economic stability, formalisation, and structural strengthening provides a constructive backdrop for India’s gold ecosystem. At a time of elevated gold and silver price volatility, the industry’s commitment through IAGES to transparency, trust, governance, and recognised standards across the value chain is critical to sustaining consumer confidence and long-term resilience. As demand expands nationwide, including fast-growing markets beyond metros, aligning businesses with excellence and compliance benchmarks will help build a more credible, competitive, and globally respected gold industry.”
Mr. Neil Sonawala, Managing Director, Zen Diamond:
“Budget 2026 strikes a pragmatic balance between fiscal discipline and consumption-led growth, which is critical for the jewellery industry. The continued focus on stable customs duties on gold and inputs brings much-needed predictability to the sector, allowing brands to plan pricing and inventory with greater confidence. Measures that support disposable income and urban consumption will directly benefit discretionary categories such as fine jewellery. As an industry rooted in tradition yet driven by evolving consumer aspirations, this budget provides a steady foundation for sustainable growth, innovation in design, and deeper market penetration across India.”
