Indian G&J industry disappointed with Budget 2026 as import duty cut on gold / GST rationalisation was not addressed

The Gems & Jewellery sector of India welcomed measures supporting MSMEs and lab-grown diamonds (LGD) in the Union Budget 2026-27.

However, requests for a cut in import duty on gold and GST rationalisation did not materialise, which has disappointed the industry at large.

Meanwhile, the removal of the ₹10 lakh cap on courier exports is a big boost for e-commerce and is well-received, as it will enable MSMEs, artisans and small jewellery brands to reach global buyers directly, with smoother handling of returns and quicker turnaround.

Extending duty-free import of LGD seeds and sawn diamonds till March 2028 is welcome, as it keeps input costs low, supports production and exports, and safeguards a fast-growing segment where India already leads globally. 

Also, setting up of the new National Institute of Design (NID) will strengthen design talent which will result in better product development, contemporary styling and stronger branding, helping Indian manufacturers to compete more effectively in global markets.