Budget expectations: Jewellers seek wide-ranging support from Budget 2025

The Indian gold/jewellery industry is asking for further cuts in import duties and a regulator for digital gold, among other things. Since it is a consumption-driven industry, jewellery makers also hope that buyers will receive tax relief.

The jewellery industry’s expectations from the Union Budget are wide-ranging, from asking for further reduction in import duty on gold and setting up a regulator for digital gold, to asking for more attractive terms for the gold monetisation scheme

On February 1, Finance Minister Nirmala Sitharaman will announce the Union Budget 2025-26. The industry wants the import duty of gold to be cut to 3 per cent from the present 6 per cent.

The duty was cut significantly from 15 per cent in the last Budget, leading to a big rally in jewellery stocks. The industry is hoping for a further decrease to make Indian jewellery exports more globally competitive.

Since it is a consumption-driven industry, the jewellery makers are also hoping that there will be tax relief given to people to give them more money in their hands. They are asking for lower goods and services tax rates and income-tax slabs that will increase disposable income that is with people.

Sachin Jain, Regional CEO, India, World Gold Council said:

“The gold industry contributes 1.3% to India’s GDP and employs approximately 2-3 million people. The government’s decision last July to reduce import duties on gold has significantly had a positive impact on the gold industry. It has reduced unofficial imports, stabilised official channels, and encouraged domestic purchasing of gold. The reduction in taxes on gold has led to a more organised and transparent industry, resulting in a stronger gold market.

Any increase in import duties in the upcoming budget may have adverse effects, potentially leading to an increase in smuggling, higher domestic gold prices, and pushing the industry backwards. It is imperative that stakeholders, including government bodies, industry players, and financial institutions, collaborate to sustain this positive momentum. By fostering a synergetic environment, we can ensure that the gold industry continues to thrive, innovate and contribute significantly to India’s economic development and prosperity. Similar to last decade, we are expecting progressive, people-friendly and industry-supportive policy announcements.”