Jewelry Industry Welcomes Customs Duty Reduction in Union Budget 2025-26

Mumbai, February 2 – India’s gem and jewelry industry has welcomed the Union Budget 2025-26, particularly the reduction in basic customs duty on platinum findings and the cut in jewelry duty, which are expected to boost the sector’s growth.

Key Budget Provisions for the Jewelry Sector

Finance Minister Nirmala Sitharaman announced significant tax adjustments and policy changes in the gems and jewelry sector as part of the Union Budget 2025-26. These include:

• Customs duty reduction on platinum findings (used in jewelry making).
• Duty on jewelry cut from 25% to 20%.
• New tariff categories under Chapter 71, defining purity levels for gold, silver, and platinum.

Industry Reactions

GJEPC Applauds Tariff Reform

The Gem and Jewellery Export Promotion Council (GJEPC) has lauded the creation of new tariff categories under Chapter 71. GJEPC Chairman Vipul Shah stated:

“We welcome the proposal to introduce new tariff items for metals under headings 7106 (silver), 7108 (gold), and 7110 (platinum). This will help properly classify alloys containing platinum and gold, addressing past inconsistencies under the India-UAE CEPA (Comprehensive Economic Partnership Agreement).”

Gold Sector to Benefit from Increased Disposable Income

Sachin Jain, Regional CEO of the World Gold Council (India), emphasized that the budget’s focus on consumption-led growth will positively impact the gold and jewelry market.

“With higher tax exemption limits, disposable income will increase, leading to greater consumer demand for gold and jewelry,” Jain noted.

Jewelry Industry Hails Duty Reduction

The cut in jewelry duty from 25% to 20% was also welcomed by the industry. Colin Shah, Managing Director of Kama Jewelry, said:

“The reduction in jewelry duty is a much-needed move that will enhance India’s competitiveness in the global market.”

Boost for India's Jewelry Market

India, being one of the largest consumers and exporters of gold and platinum jewelry, is expected to benefit significantly from these policy changes. Lower duties will make Indian jewelry more competitive in global markets, while higher domestic consumption could further fuel growth in the industry.

With these industry-friendly measures, experts anticipate a stronger performance for the Indian gem and jewelry sector in the coming financial year.