Budget 2026 watch: Gems and jewellery sector seeks GST cut and customs duty rationalisation
Ahead of the Union Budget 2026–27, the gems and jewellery industry is asking for GST relief and duty changes to improve export competitiveness amid tough global conditions.
With the Union Budget 2026–27 approaching, India’s gems and jewellery sector has laid out a wishlist focused on taxes and trade competitiveness. An industry report published on 25 January 2026 said stakeholders are seeking a reduction in GST, along with customs duty rationalisation and a set of policy reforms to support the sector.
The sector’s pitch is rooted in exports. As global demand and trade conditions fluctuate, manufacturers and exporters argue that lowering friction in the tax-and-duty structure can help Indian jewellery remain price-competitive in key overseas markets. The demand also reflects how the industry links policy clarity with easier compliance and better working-capital management.
Industry voices say the requested changes could help address challenges such as input costs, supply-chain uncertainty and intense competition from other manufacturing hubs. While the government has frequently used budget announcements to fine-tune duties in line with trade goals, the sector is signalling it wants a more predictable and supportive structure for the coming year.
The gems and jewellery ecosystem is labour-intensive and spread across multiple clusters, which means any shift in GST or customs duty can have an outsized impact on cash flows for MSMEs as well as large exporters. The industry is positioning its asks as a growth-and-jobs argument, not only a tax reduction request.
What the industry is pushing for
- GST reduction or restructuring to ease compliance and reduce cost pressures.
- Customs duty rationalisation to improve competitiveness for exports and inputs.
- Policy reforms aimed at boosting scale, formalisation and global market access.
As Budget discussions intensify, the sector’s demands will be weighed against revenue priorities, import management and the government’s broader push for manufacturing-led growth. The final outcome will influence export pricing and margins for an industry that relies heavily on international demand cycles.