G&J Industry Welcomes the Union Budget

Vipul Shah

Mumbai: India’s Finance Minister Ms. Nirmala Sitharaman presented the Union Budget for the year 2025-26 in Lok Sabha yesterday which was wholeheartedly welcomed by the Gems & Jewellery industry of the country. Here are the feedbacks received by some industry leaders:

Mr. Vipul Shah, Chairman of GJEPC:

“Union Budget puts India in the growth path to Viksit Bharat. The Budget reforms will help to realize India’s domestic growth potential and unveil a new trade roadmap to navigate global uncertainties.

GJEPC welcomes the recognition of exports as the 4th engine of growth and the new Export Promotion Mission with sectoral and ministerial targets, driven jointly by Union Commerce, Finance & MSME Ministries. This will facilitate easy access to export credit cross border and factor support to MSMEs to tackle non-tariff barriers in exports. GJEPC welcomes the digital public infrastructure, ‘BharatTradeNet’ (BTN) for international trade to be set-up as a unified platform for trade documentation and financing solutions.

GJEPC further welcomes the proposal of creating of new tariff items in Chapter 71 so as to distinguish precious metals – containing 99.9% or more by weight of silver, containing 99.5% or more by weight of gold, containing 99% or more by weight of platinum under headings 7106, 7108 and 7110 respectively. This move aligns with the representation made by GJEPC for addressing the issue of classification of alloys of Platinum (pre-dominantly containing gold), which was invariably leading to claim of unwarranted customs duty exemptions for import of Platinum under India-UAE CEPA .

Gem & Jewellery sector comprises of 85%-90% of MSMEs. The revision in classification criteria of MSMEs especially with those with turnover from Rs. 250 crore to Rs. 500 crore will help them achieve higher efficiencies of scale, technological upgradation and better access to capital. The extension of credit guarantee cover to MSMEs leading to additional credit of Rs. 1.5 lakh crore in the next 5 years will benefit and provide boost to the MSMEs in the sector.

The Government’s stable approach on duties and levies across gem & jewellery products will enhance ease of doing business. The Basic Customs duty rate has been reduced from 25% to 5% on platinum findings classified under 7113 will enable consumers to get a new product and increase affordable jewellery sales..

GJEPC welcomes the Government’s labour intensive focus enhancing productivity, quality manufacturing and global competitiveness. G & J industry is labour intensive with 5 million people employed in Exports. The announcement of National Manufacturing Mission & the National Centres of Excellence Skilling furthering ‘Make for India ‘Make for the World’ is positive and is set to have direct benefit to the sector.

Removal of Customs (Import of Goods at Concessional rate of duty or For Specific End Use) Rules 2022 (IGCR) condition for import of seeds for use in manufacture of Lab Grown Diamonds and Extension of customs duty exemption on such seeds till 31.3.2026 , this will provide major boost to the LGD manufacturing sector

GJEPC remains committed to collaborating with the Government of India to ensure the sector continues to contribute significantly to the nation’s economy. Council requests the issuance of FAQs on Safe Harbour Taxation. We seek Hon. FM’s support for co-funding global diamond promotion campaigns, the inclusion of jewellery parks in the harmonised infrastructure list, and an Infrastructure Support Fund to develop a Gem Bourse in Jaipur.

GJEPC urges the Government to align regulations with global benchmarks, to set up a policy that promotes exports, innovation, use of technology, and incentivizes sustainable practices.

Ms. Vaishali Banerjee, Managing Director – India, Platinum Guild International (PGI):

“We sincerely thank the Honourable Finance Minister for presenting a robust budget. The reduction in the customs duty from 25% to 6.4% on platinum findings and the reduction in the tariff rate from 25% to 20% on finished jewellery— is a significant step. We are confident that these measures will stimulate renewed demand and drive growth for platinum in the coming years.”

Mr. Sachin Jain, Regional CEO, India, World Gold Council (WGC):

“The fiscal budget is advantageous for the gold industry as it increases disposable income, encourages spending, and promotes economic growth across various income levels. The omission of TCS above certain limits reduces compliance burdens and enhances the ease of doing business. Creation of Export Promotion Mission, National Manufacturing Mission furthering “Make in India”, the National Centres of Excellence for Skilling encouraging MSME’s and digital public infrastructure ‘BharatTradeNet’ for international trade will support the Indian gold industry and enhance its crucial role in contributing to Viskit Bharat 2047.

Simplification and reduction of taxes positively impact the Indian middle class and salaried individuals, while also supporting farmers, businesses, and investments. With a focus on financial empowerment and ease of living, the government aims to foster innovation, artificial intelligence, infrastructure development, and inclusive economic growth. Overall, this consumption-led budget prioritises both investments and spending, with the increase in disposable incomes due to an enhanced tax exemption limit expected to boost overall consumer demand, including that for gold and jewellery.”

Mr. Rajesh Rokde, Chairman of All India Gem and Jewellery Domestic Council (GJC):

“The reduction in personal income tax rates, along with the tax exemption limit raised to ₹12 lakh, is a positive move that will significantly boost consumer spending and drive demand for jewellery. This increase in disposable income is expected to particularly benefit the gold and branded jewellery sectors. Additionally, the abolition of TDS and TCS on high-value transactions above ₹50 lakh will streamline operations, ease compliance burdens, and bring more transactions into the formal, hallmarked market. These reforms will foster transparency, trust, and sustainable growth in the jewellery industry.”

Mr. Avinash Gupta, Vice Chairman GJC:

“The reduction in personal income tax rates is a welcome move as it will enhance disposable income, leading to increased consumer spending, including in the jewellery sector. Additionally, the eradication of TDS and TCS on specific goods purchases and sales above ₹50 lakh will significantly ease compliance burdens for jewellers and bullion dealers, fostering a more seamless and efficient business environment. These measures will collectively boost industry growth and strengthen consumer confidence.”

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