Gems and jewellery sector pitches GST cut and duty rationalisation ahead of Union Budget 2026–27

Pre-Budget wishlist from a major export sector

With the Union Budget 2026–27 approaching, India’s gems and jewellery industry is pressing for a package of tax and policy changes it says are needed to strengthen exports and improve competitiveness. A Times of India report said stakeholders are seeking a reduction in GST, a rationalisation of customs duties and broader reforms to help the sector navigate global trade challenges.

The industry’s case rests on the argument that jewellery exports operate in a price-sensitive global market, where input costs and tax structure directly influence margins. Supporters of reform believe smoother duty structures and lower tax incidence could make Indian manufacturers and exporters more resilient, particularly in periods when overseas demand softens or becomes volatile.

Why GST and duties are central to the pitch

For a sector that depends on imported raw materials and international pricing benchmarks, customs duties can shape working capital needs and inventory decisions. GST levels and refund efficiency can also affect liquidity for exporters. Industry voices therefore frequently push for predictable, simplified tax treatment—especially when competing with hubs that offer fast processing and stable trade policies.

The report described the push as part of a broader effort to protect export momentum and sustain the sector’s contribution to jobs, MSME clusters and foreign exchange earnings. Stakeholders argue that a targeted policy reset can help Indian players hold market share even as global trade patterns remain uncertain.

What Budget watchers will look for

• Any GST rate changes or compliance simplification affecting jewellery products and inputs
• Customs duty restructuring aimed at reducing cost distortions
• Export-support measures that improve competitiveness without adding heavy paperwork

If the Budget signals relief on taxes and duties, the sector expects better price competitiveness abroad and smoother domestic operations, particularly for smaller exporters.