Ahead of Budget 2026–27, jewellery industry seeks GST cuts, duty rationalisation and policy reforms
India’s gems and jewellery sector has asked the government for a set of Budget 2026–27 measures, including GST relief, customs duty rationalisation and policy tweaks aimed at strengthening exports. Industry bodies say cost reductions and clearer trade rules are needed to improve competitiveness amid global headwinds.
Industry’s Budget 2026–27 wish list
With the Union Budget 2026–27 approaching, India’s gems and jewellery industry has urged the Centre to consider a package of tax and trade reforms aimed at boosting exports and improving competitiveness. The sector says that a combination of GST cuts, customs duty rationalisation and supportive policy changes could help exporters cope with global trade pressure and changing demand patterns.
According to the report, the Gem and Jewellery Export Promotion Council (GJEPC) submitted a pre-Budget memorandum to Finance Minister Nirmala Sitharaman outlining measures intended to lower costs for exporters and strengthen India’s role in the global diamond trade and value-discovery ecosystem.
Why the sector is pressing for reforms
The industry argues that pricing pressures and uncertain international demand require more efficient domestic cost structures. In practice, stakeholders are seeking easier movement of inputs, clearer rules for trade, and tax adjustments that can improve margins and help Indian firms compete with other major jewellery and diamond hubs.
Participants also want reforms that support long-term growth, including measures that can improve compliance simplicity and encourage investment in value-added manufacturing and exports.
What to watch
- Whether GST rates or compliance rules for gems and jewellery see changes in Budget 2026–27
- Any customs duty rationalisation on key inputs to improve export competitiveness
- Policy signals to strengthen India’s position in diamond trade, value discovery and related services
The eventual Budget announcements will determine how much relief exporters receive, and whether the government prioritises sector-specific changes as part of a broader manufacturing and trade strategy.