JB Insights
Union Budget 2026-27 is a boost for India’s gems & jewellery sector via liquidity, manufacturing support, and exports.
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Kirit Bhansali, Chairman -GJEPC
The proposed measures focus on easing trade and strengthening the gems and jewellery ecosystem through a mix of regulatory and financial reforms. Customs processes are set to become more trust-based, with digital appraisals and simplified clearances aimed at reducing delays and costs. To help manufacturers utilise idle capacity amid US tariffs, SEZ units will be allowed to sell into the domestic tariff area at concessional duties.
MSMEs and e-commerce exporters will benefit from an increased Rs.10 lakh cap on courier exports and the introduction of advance filing of Bills of Entry for faster clearances. Financial support is being reinforced through a Rs.10,000 crore Growth Fund, Rs.2,000 crore for micro units, expanded TReDS financing of Rs.7 lakh crore, and an extension of duty deferment to 30 days. Additionally, duty-free imports of lab-grown diamonds and sawn diamonds have been extended until 2028, alongside the establishment of a new National Institute of Design–linked initiative to drive design innovation, supporting the long-term goal of achieving $100 billion in gems and jewellery exports by 2047.
Prithviraj Kothari, National President-IBJA
Union Budget 2026–27 focused on sustained 7% growth through fiscal discipline, structural reforms, and people-centric development. It prioritised manufacturing, MSMEs, services, infrastructure, energy security, and trust-based governance, while advancing Viksit Bharat via inclusive growth, financial stability, and ease of doing business. The bullion industry had expected a cut in import duty on gold, GST rationalisation, export incentives and extended credit support.
The Budget announced capital gains tax exemption on RBI Sovereign Gold Bonds, applicable only to original subscribers, not to secondary market buyers, while there were no announcements of any meaningful reduction in gold import duty or GST reforms.
Rajesh Rokde, Chairman- 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.
Avinash Gupta, Vice Chairman, 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.
Surendra Mehta, National Secretary IBJA
Gold and silver industry is relieved as there is no change in custom duty. A consistent customs duty helps industry and does not create confusion in the buyer’s mind.
Capital gain exemption on redemption of maturity of sovereign gold bond is now kept only for original subscriber -this is also a welcome step; it will avoid different tax treatment by officers for different assessee.
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.
Manoj Jha, CMD Kamakhya Jewels Ltd
The Budget strikes a strong balance between growth and fiscal discipline, reinforcing stability for the gems & jewellery industry. Policy continuity, infrastructure focus and tax clarity boost confidence, improve planning across the ecosystem, and support sustainable long-term growth in India and global markets.
Suvankar Sen, MD & CEO, Senco Gold and Diamonds
The Union Minister’s focus on macroeconomic stability, infrastructure, MSME growth, skilling, and technology adoption reflects a strong long-term vision. For eastern India–based manufacturers like us, the emphasis on skilling and regional development is especially encouraging, as it will strengthen the workforce with professionally trained talent.
Ghanshyam Dholakia, Founder & MD-Hari Krishna Exports and KISNA
We view the Union Budget 2026–27 as a constructive and growth-oriented step for the gems and jewellery sector, with an emphasis on ease of doing business. The move toward trust-based customs, faster clearances, smoother bonded warehouse movements, removal of the cap on courier exports, and an improved GST refund framework will enhance supply-chain efficiency and unlock working capital across the value chain.
Enhanced MSME financing backed by credit guarantees further strengthens liquidity for manufacturers and exporters. The balanced tax treatment of Sovereign Gold Bonds and physical gold also supports a fair and consumer-friendly market.
Kaushlendra Sinha CEO- Indian Association for Gold Excellence and Standards (IAGES)
“The Budget’s emphasis on economic stability and formalisation creates a supportive environment for India’s gold ecosystem. Amid volatile gold and silver prices, the industry’s commitment through IAGES to transparency, governance and recognised standards is vital to sustaining consumer trust. As demand grows beyond metros, compliance and excellence will be key to building a credible and globally competitive gold industry.”
Paul Alukkas, MD-Jos Alukkas
The Union Budget 2026–27 reinforces confidence in the economy by backing growth of around 7% while staying on a fiscal consolidation path, with the deficit targeted to decline from 4.8% in FY25 to 4.4% in FY26. This focus on macroeconomic stability is reassuring for households and businesses. Measures such as TDS rationalisation and lower TCS on education expenses abroad should boost disposable incomes and discretionary spending and this is a welcome measure.
The continued emphasis on MSMEs, credit availability and formalisation is expected to support jewellers, particularly in tier-2, tier-3 and rural markets.
Naresh Balani,Chairman, JMA Forum
The Union Budget 2026 is a positive and encouraging step for the MSME manufacturing sector. Its focus on credit access, technology, and Make in India will strengthen jewellery machinery manufacturers and help Indian MSMEs compete globally.
Neil Sonawala,MD, 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.
Dr. Renisha Chainani, Head of Research – Augmont
Union Budget 2026-27 focuses on action-led, people-centric growth, targeting ~7% GDP expansion through fiscal discipline, infrastructure-led capex, MSME support, manufacturing, services growth and green initiatives under the ‘Viksit Bharat’ vision. However, despite industry expectations for relief amid high gold and silver prices-such as import duty cuts, GST rationalisation and customs reforms-the Budget did not announce any major sector-specific measures for the gems and jewellery industry.
Namita Kothari, Founder – Akoirah by Augmont
Union Budget 2026-27 supports productivity-led growth and fiscal stability, reinforcing long-term confidence in discretionary sectors like jewellery. While there are no direct incentives for the industry, the focus on trade facilitation, competitiveness and capital market participation-including wider NRI access-is positive for organised, compliant players. For emerging segments like lab-grown diamonds, long-term growth will depend on manufacturing strength, skilling, export readiness and building consumer trust through transparency and quality standards.
JB Insights
India Raises Gold, Silver Import Duty To 15% To Curb Soaring Precious Metal Import Bills and Conserve Forex
Higher Duties Could Increase Prices, Impact Exports, and Create Liquidity Pressure For MSME Manufacturers Due To Rising Working Capital Requirements
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The Finance Ministry on Wednesday raised effective import duty on gold and silver from 6% to 15% — comprising 10% basic customs duty and 5% agriculture infrastructure and development cess (AIDC) — effective 13 May 2026. The move aims to curb soaring precious metal import bills and conserve foreign exchange reserves as the West Asia crisis intensifies pressure on India’s trade balance.
Markets reacted swiftly. Titan fell as much as 1.5% on the day, extending a prior two-session decline of over 10%, while Kalyan Jewellers dropped as much as 5.9%. Gold and silver ETFs rallied sharply on expectations of higher domestic bullion prices. WGC data implies the 9-percentage-point hike could suppress annual consumer demand by roughly 57 tonnes — based on an estimate of 6.4 tonnes of demand suppression per 1% duty rise.
● Industry Voices
“Higher duties could revive gold smuggling, which had eased substantially after the 2024 duty reduction. Every 1% rise in import duty reduces consumer demand by approximately 6.4 tonnes — implying the hike could suppress demand by ~57 tonnes annually.”
Prithviraj Kothari, MD, RiddiSiddhi Bullions | National President, IBJA Bullions | Chairman, JITO
“Higher duties could increase prices, impact exports, and create liquidity pressure for MSME manufacturers due to rising working capital requirements. We urge continued dialogue for balanced solutions that support both economic goals and export growth.”
Kirit Bhansali Chairman, GJEPC
“The increase in customs duty is a temporary and calibrated measure in the present economic scenario. The trade should remain calm and confident — India’s jewellery sector has always demonstrated resilience and adaptability during challenging times.”
Rajesh Rokde Chairman, GJC
“It is important for the trade fraternity to avoid panic and continue business with confidence and responsibility. GJC fully supports the nation’s larger economic priorities and remains committed to constructive engagement with policymakers.”
Avinash Gupta Vice Chairman, GJC
“Due to the simultaneous occurrence of two events—the sudden 9% hike in import duty and statements made by PM Modi—both the jewelry industry and customers find themselves in a state of confusion. This is significantly impacting jewellers, artisans, and large factories alike.
My suggestion to everyone is to remain patient and avoid panicking. Everyone should avoid protests, shop closures, or any form of aggression. Once the government’s complete process is revealed, we can then consider all options through dialogue and discussion.”
Anurag Rastogi, North India Head – IBJA
“Business is already at nearly 50% of normal levels, and the duty increase will reduce consumption volumes further. Promoting lower caratage jewellery — 9ct, 14ct, 18ct — could make products more affordable and reduce gold usage. As an industry, we must stand with the government during this period.”
K. Srinivasan, CMD, Emerald Group
“An increase in import duty on gold typically has a direct impact on retail prices, influencing short-term consumer sentiment — especially for price-sensitive buyers. In the immediate phase, some customers may postpone discretionary purchases or wait for price stability. It can lead to a 10–15% volume decline to help control gold inflows into the country.
However, gold buying in India is deeply linked to weddings, festivals, and long-term wealth preservation, so demand is usually resilient over time.”
Suvankar Sen, MD & CEO, Senco Gold and Diamonds
“Changes in import duties on gold and silver are part of an evolving policy landscape, and the industry has consistently adapted with resilience and stability. We respect the government’s decision and recognize the broader economic considerations behind such measures.
Over the years, gold import duty has moved from 15% to 6% and now back to 15%. However, gold prices have never been driven by changes in duty alone. Global trends, rupee depreciation, and consumer demand remain key factors, while recent revisions reflect an already elevated domestic gold price environment.”
Chetan Thadeshwar, CMD – Shringar House Of Mangalsutra Ltd
“At SwarnShilp, we believe any duty increase is a reminder for the industry to become faster, more efficient, and more design-driven. Our focus remains on strong inventory planning, lightweight innovation, and timely delivery to support our customers despite market volatility.”
Khushboo Ranawat, Director – SwarnShilp Chains & Jewellers Pvt Ltd
● Industry Proposals
Lower caratage push
Promote 9K, 14K & 18K jewellery to cut gold consumption and keep prices within reach
Revamp GMS
Overhaul the Gold Monetization Scheme through jeweller networks to mobilize idle household gold
Old Gold Exchange
Scale consumer recycling programmes to reduce dependency on fresh bullion imports
● Risks to watch out for
● Dubai/CEPA arbitrage — GTRI warns that the India–UAE CEPA could make UAE-routed imports cheaper, partially neutralizing the duty’s intent
● Smuggling revival — duty spikes above 10% have historically correlated with the resurgence of grey-market gold flows into India
● Export competitiveness — higher landed costs raise working capital requirements for MSME exporters and could weigh on jewellery export volumes
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