Budget 2026–27: Gems and jewellery industry seeks GST cut, duty rationalisation and policy reforms

What the industry is asking for in Budget 2026–27

India’s gems and jewellery sector has submitted a pre-Budget memorandum seeking a combination of GST reductions, customs-duty changes and policy tweaks, arguing that these steps are needed to maintain competitiveness amid shifting global trade conditions.

The Gem and Jewellery Export Promotion Council (GJEPC) has highlighted measures aimed at lowering overall costs for exporters and improving operating conditions across the supply chain, from import of inputs to export clearances.

Why the sector says it needs relief now

Industry representatives say international demand and trade conditions have become more challenging, and that pricing pressure can quickly translate into lost orders in an industry where margins are tight and buyers can switch sourcing hubs.

In that context, the focus on duty rationalisation is framed as a way to prevent input costs from climbing at a time when exporters are already facing uncertain market conditions.

What could change if proposals are accepted

• Lower tax and compliance burdens could reduce working-capital stress for exporters and MSME units.
• More predictable customs processes and rationalised duties could shorten turnaround time and make pricing more competitive.
• Policy clarity may encourage investment in higher-value segments and support employment across cutting, polishing and manufacturing clusters.

While proposals do not guarantee acceptance, such pre-Budget submissions often shape consultations by identifying where a sector believes policy is directly affecting orders, costs and investment decisions.