As global demand remains uneven and supply chains continue to recalibrate, India’s gems and jewellery industry entered Budget 2026–27 looking less for big-ticket announcements and more for stability, liquidity, and operational clarity. In that context, the Union Budget has been widely welcomed by industry bodies and business leaders as growth-focused, balanced, and sensitive to the realities of a sector that sits at the intersection of manufacturing, exports, and employment.
Rather than introducing disruptive changes, the budget focuses on removing bottlenecks, easing cash-flow pressures, and strengthening India’s position as a reliable global jewellery hub—particularly at a time when trade volatility and tariff pressures continue to affect international markets.
One of the most reassuring signals for the trade is what the budget did not change. Customs duty and GST on gold and silver remain untouched, offering much-needed policy certainty. For manufacturers, exporters, and bullion traders, this continuity allows better planning across procurement, pricing, and inventory cycles.
Industry representatives have noted that the absence of tax shocks, combined with simplified income-tax and compliance measures, creates a more predictable operating environment—critical for a sector driven by working capital and long production timelines.
The budget places strong emphasis on trust-based governance in customs procedures. Digital appraisals, simplified clearances, and advance filing of Bills of Entry for trusted importers are expected to significantly cut waiting times at ports, lower logistics costs, and speed up deliveries.
Extending the duty deferment period for Authorised Economic Operators from 15 to 30 days, with similar benefits for eligible manufacturers, further improves liquidity and reduces compliance-related friction. For exporters, these changes directly affect turnaround times and competitiveness in global markets.
A key reform for manufacturing units is the introduction of a special one-time facility allowing limited sales from SEZs to the Domestic Tariff Area at concessional duties. This move is expected to help factories utilise idle capacity, safeguard jobs, and remain resilient amid global demand volatility and external trade pressures such as US tariffs.
In parallel, the removal of the ₹10 lakh cap on courier exports opens new avenues for e-commerce-led exports. MSMEs, artisans, and small jewellery brands now have greater flexibility to access global buyers, manage returns efficiently, and operate with faster order cycles.
With MSMEs accounting for over 80 percent of the gems and jewellery ecosystem, the budget’s financial measures carry significant weight. Initiatives such as the ₹10,000 crore SME Growth Fund, ₹2,000 crore support for micro units, and expanded liquidity of up to ₹7 lakh crore through TReDS are expected to ease access to credit and support expansion across manufacturing clusters.
Extending duty-free imports of lab-grown diamond seeds and sawn diamonds until March 2028 supports a fast-growing segment where India already holds global leadership. The announcement of a new National Institute of Design also signals a push towards stronger design capability, innovation, and branding—key to moving Indian jewellery up the global value chain.
No change in customs duty or GST on gold and silver, ensuring price and policy stability
Trust-based customs reforms with digital appraisals and faster clearances
Advance filing of Bills of Entry for trusted importers to reduce port delays
Duty deferment period for AEOs extended from 15 to 30 days, improving cash flow
One-time facility allowing limited SEZ sales to the domestic market at concessional duties
Removal of ₹10 lakh cap on courier exports, boosting e-commerce and MSME exports
₹10,000 crore SME Growth Fund and ₹2,000 crore support for micro units
Up to ₹7 lakh crore liquidity through TReDS to ease credit access
Duty-free import of lab-grown diamond seeds and sawn diamonds extended till March 2028
New National Institute of Design to strengthen jewellery design, innovation, and branding