Stakeholders from the Indian bullion and jewellery sectors have sought several policy measures from the Government in the forthcoming Budget, including the rationalisation of duty and tax structures, to ensure fairness, competitiveness, and long-term sustainability of the sectors.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of the India Bullion and Jewellers’ Association Ltd, said the Indian bullion industry has highlighted three key policy demands to ensure fairness, competitiveness, and long-term sustainability.
Under the Tariff Rate Quota (TRQ) framework and FTAs such as the CEPA with the UAE, the 1 per cent customs duty benefit should be passed on equitably. While Dubai imports around 180 tonnes of gold annually with a 1 per cent duty advantage, gold dore bars imported into India receive only a 0.65 per cent benefit, risking a sharp decline in dore imports. “To correct this imbalance, we have proposed raising the duty on dore bar imports to 1.65 per cent,” he said.
‘Simplify mining norms’
To address the misuse of FTAs, he suggested reducing the basic customs duty on gold from 6 per cent to 4 per cent, creating a more level-playing field for the domestic industry.
Urging the Government to simplify gold mining regulations in India and sanction funds, he said with supportive policies and funding, India’s domestic gold production can be significantly enhanced, reducing import dependence.
Suvankar Sen, MD and CEO of Senco Gold Ltd, said despite volatility in gold and silver prices, consumer demand in India has remained resilient, though more carefully budgeted.
Sen said initiatives such as regulated small-ticket EMI options for gold jewellery and a review of the current 3 per cent GST structure could meaningfully ease consumer burden and encourage higher participation in the formal market.
“We are also witnessing growing traction in old gold exchange, which now accounts for nearly 45 per cent of transactions. Given India’s household gold holdings of close to 24,000 tonnes, continued policy focus on innovative mechanisms to mobilise physical gold can help unlock significant long-term value for the economy,” Sen said.
Reduce costs
Namita Kothari, Founder at Akoirah by Augmont, said that with recent tariff increases leading to a decline of over 44 per cent in India’s gem and jewellery exports to the US, strengthening the domestic market becomes increasingly important. As lab-grown diamonds scale beyond early adopters, consumer trust and regulatory clarity must scale with them. Clear frameworks such as BIS certification help formalise the category and build confidence at every price point. At the same time, measures that encourage domestic consumption, including a review of capital gains taxation on jewellery, could support long-term participation and resilience, Namita Kothari said.
Colin Shah, MD, Kama Jewelry, said the gems and jewellery sector is crucial to India’s export ecosystem and global competitiveness, and it seeks a prudent mix of tax rationalisation, duty structure adjustments, and greater operational flexibility to navigate current headwinds and sustain growth.
Boosting exports
There’s a need to boost exports and attract FDI by creating a more predictable, low-tax regime for rough diamond miners selling in India. Furthermore, a stable, transparent tax environment for rough diamonds can significantly enhance supply chain efficiency and support downstream value addition, he said.
With tax and duty rationalisation for rough and polished stones, there needs to be a simplified and predictable tax regime for rough diamond transactions. Waiver of duties on rough gemstones will improve early-stage cost competitiveness, and the introduction of an ad-valorem drawback mechanism will enhance export competitiveness, he said.
Mangesh Chauhan, Managing Director of Sky Gold & Diamonds, said the gems and jewellery sector seeks measures that reduce costs, simplify trade procedures, boost domestic demand, and enhance global competitiveness.
A key priority is rationalising import duties on gold, silver, platinum, coloured gemstones and other essential inputs. Lower duties will ease manufacturing costs, improve pricing for exporters, and help Indian producers compete more effectively in global markets. Simplification of customs procedures through faster clearances, risk-based checks, and digital documentation would reduce delays and lower logistics costs for exporters.
Rationalising duty on gems
On the domestic front, streamlining GST on jewellery, including a reduction from the current 3 per cent to around 1-1.25 per cent, will lower the cost to consumers, encourage formal sales, and broaden the tax base, Chauhan said.
Jignesh Mehta, MD and Founder of Divine Solitaires, a natural diamond jewellery brand, said Indian-origin consumer brands with a global vision should receive stronger institutional support from the government, whether through duty rationalisation or easier access to financing, enabling them to scale competitively on the global stage.
Rationalising the existing 5 per cent import duty on cut and polished diamonds as well as coloured gemstones to 2.5 per cent will further boost exports, generate employment and push local manufacturing.
Ricky Vasandani, CEO and co-founder of Solitario, said India has a once-in-a-generation opportunity to lead the global shift towards ethical, lab-grown diamonds. Continued policy stability, expanded R&D incentives and easier access to financing for manufacturers in the upcoming Budget will be critical to helping India become the world’s largest hub for sustainable diamond production. With indigenous technology, including initiatives such as the IIT Madras seed programme, India could reduce production costs by 20-30 per cent over the next two years, making lab-grown diamonds more affordable globally while strengthening exports and job creation.
Mangesh Chauhan, Managing Director, said the gems and jewellery sector seeks measures that reduce costs, simplify trade procedures, boost domestic demand, and enhance global competitiveness. In a challenging global trade environment, marked by tariff pressures and shifting supply chains. Pragmatic and growth-oriented reforms can have an outsized impact on industry sustainability and employment.
A key priority is rationalising import duties on gold, silver, platinum, coloured gemstones and other essential inputs. Lower duties will ease manufacturing costs, improve pricing for exporters, and help Indian producers compete more effectively in global markets. Simplification of customs procedures through faster clearances, risk-based checks, and digital documentation would reduce delays and lower logistics costs for exporters.
Pooja Madhavan, Founder & Managing Director, Limelight Lab Grown Diamonds, said: “As we head into the Union Budget, we look forward to encouraging reforms that support responsible growth in the jewellery sector. Rationalisation of GST, encouragement for Indian origin lab grown diamonds, and support for domestic manufacturing will go a long way in making India a global hub for new-age jewellery. Introducing Gold Monetisation Scheme can also be very timely given the rising gold prices and can work in favour of both - the Government and the Indian citizen. Clear policy signals can help the industry drive innovation while remaining accessible to the modern Indian consumer.”
Mr. Neil Sonawala of Chairman, Zen Diamond, said: “As India’s gems and jewellery sector continues to grow at a healthy 8–10% annually, the upcoming Union Budget will play a crucial role in sustaining this momentum. We are optimistic about measures such as rationalisation of import duties on gold and diamonds, incentives to boost organised retail, and policies that strengthen exports and ease of doing business. With rising consumer preference for contemporary, lightweight diamond jewellery and increasing design-led demand, a forward-looking policy framework will further enhance industry competitiveness. A budget that supports digital enablement, manufacturing and consumer confidence will be instrumental in unlocking the next phase of growth for the jewellery sector.”
