As the Union Budget 2026 draws closer, India’s gems and jewellery industry has stepped up its demands for policy reforms aimed at reviving demand, supporting employment and improving transparency. Industry leaders believe the upcoming Budget can play a decisive role in restoring consumer confidence at a time when global trade uncertainty and high prices have made buyers cautious. With jewellery being both a cultural and economic mainstay, the sector is urging the government to adopt growth-oriented and consumer-friendly measures.

One of the key demands from industry stakeholders is a reduction in the Goods and Services Tax on gold jewellery. Currently taxed at 3 percent, the industry has proposed bringing the rate down to around 1.5 percent to make jewellery more affordable for consumers. Leaders argue that lower GST would ease financial pressure on households, especially during periods of inflation and global volatility, while also encouraging higher volumes and formal transactions. Simplifying tax structures, they say, would help bridge the long-standing gap between organised and unorganised players and improve compliance across the value chain.

Alongside GST cuts, the jewellery sector is calling for rationalisation of import duties on gold and precious metals. Stakeholders believe that lowering import duty from the current levels would not only improve affordability but also reduce incentives for illegal trade and smuggling. Since India relies heavily on gold imports, even modest duty reductions can have a significant impact on domestic prices and demand. Industry experts also stress the need for a streamlined customs and tax framework with fewer tariff slabs and clearer procedures to ease compliance and unlock liquidity for manufacturers and retailers.

There is also renewed interest in strengthening gold-related financial products. Industry voices have suggested reviving Sovereign Gold Bonds with better incentives and improved digital access, along with enhanced tax benefits for Gold ETFs to encourage financialisation of household savings. At the same time, measures such as duty rationalisation on making charges, better access to raw materials through Special Notified Zones, and export facilitation are seen as crucial for improving global competitiveness. With the sector supporting millions of livelihoods and contributing significantly to exports, industry leaders remain optimistic that Budget 2026 will deliver balanced reforms that sustain growth, boost formalisation and reinforce India’s position as a global jewellery hub.