Budget 2026 watch: Jewellery sector seeks GST relief, duty rationalisation and export-friendly reforms
Ahead of the Union Budget 2026–27, India’s gems and jewellery industry is urging the government to cut GST, rationalise customs duties and pursue policy reforms aimed at boosting exports and competitiveness. The sector argues that global headwinds and shifting trade dynamics make cost and tax restructuring urgent.
An industry pitch ahead of Budget 2026–27
As Budget season builds momentum, India’s gems and jewellery sector has laid out a set of demands it wants included in the Union Budget 2026–27. The industry’s pitch centres on three themes: a reduction in the Goods and Services Tax (GST), rationalisation of customs duties, and broader reforms designed to improve ease of doing business and strengthen export competitiveness.
The sector’s argument is that tax and duty structures significantly shape working capital cycles, pricing power and the ability to compete internationally—especially when demand swings and supply disruptions are driven by global economic conditions. Industry voices are framing the budget as a crucial chance to protect and expand one of India’s largest value-added export ecosystems.
GST and duty rationalisation: why it matters
Stakeholders say GST relief would help reduce the friction costs that firms face across manufacturing and retail channels, while customs duty rationalisation could improve input cost predictability for exporters and manufacturers dependent on imported raw materials. In a business where margins can be sensitive to price moves, policy stability and tax clarity can influence decisions on inventory, hedging, and market expansion.
The sector is also seeking reforms that it believes will enhance the overall competitiveness of Indian jewellery in global markets. The stated goal is to preserve India’s role as a key processing and design hub while improving the economics for exporters who operate in a price-competitive environment with stringent delivery timelines.
Exports, jobs and the competitiveness narrative
Industry representatives highlight that jewellery and related value chains are labour-intensive and spread across clusters, meaning even incremental policy changes can have broad employment effects. They want the government to treat the sector as both a manufacturing and export priority—one that can bring in foreign exchange, support MSMEs and sustain skilled jobs, while also formalising parts of the ecosystem.
Budget expectations are ultimately a negotiation between revenue needs and competitiveness goals; the jewellery sector is betting that GST and duty tweaks can pay back through higher exports and activity.
With the Budget still pending, the demands are part of a broader wave of pre-budget representations from industries seeking targeted relief. For gems and jewellery, the focus remains clear: lower tax friction, smoother duty structures, and reforms that help India sell more in the world market.