India’s G&J Industry lauds move to cut duty in Union Budget 2025-26

The gem and jewellery industry has welcomed the government’s move to reduce the basic customs duty on platinum findings and slash jewellery duty in the Union Budget 2025-26.

The Gem and Jewellery Export Promotion Council (GJEPC) chairman Vipul Shah said the council welcomes the proposal to create new tariff items in Chapter 71 to distinguish precious metals containing 99.9 per cent or more by weight of silver, 99.5 per cent. The extension of credit guarantee cover to MSMEs leading to additional credit of Rs 1.5 lakh crore in the next 5 years will benefit boost the MSMEs in the sector. The government’s stable approach to duties and levies across gem and jewellery products will enhance the ease of doing business. The Basic Customs duty rate has been reduced from 25 per cent to 5 per cent on platinum findings which will enable consumers to get a new product.

World Gold Council Regional CEO, India, Sachin Jain said, the budget announced by Finance Minister Nirmala Sitharaman is advantageous for the gold industry as it increases disposable income, encourages spending, and promotes economic growth across various income levels.

Meanwhile, the omission of TCS above certain limits reduces compliance burdens and enhances the ease of doing business. The creation of the Export Promotion Mission, the National Manufacturing Mission furthering “Make in India”, the National Centres of Excellence for Skilling encouraging MSME and digital public infrastructure ‘BharatTradeNet’ for international trade will support the Indian gold industry and enhance its crucial role in contributing to Visit Bharat 2047.

According to Kama Jewelry MD Colin Shah, the reduction of jewellery duty from 25 per cent to 20 per cent is a welcome move. It will boost the demand in the domestic market, especially in luxury. Slashing of duty on platinum finding to 5 per cent will prove beneficial for the entire gems and jewellery industry. Removing IGCR conditions for import duty-free LGD seeds will further increase the appeal of LGDs and boost their demand.