#UnionBudget2025: Some relief, some unmet expectations, but optimism rules gems and jewellery industry 

Some of the notable changes are reduction in customs duty on jewellery articles and parts (HS Code 7113) from 25% to 20%, and change in personal income tax slabs that will free up disposable income to boost consumption  

Mumbai: The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, has introduced some measures bringing relief to the jewellery sector, while some of the industry’s key expectations remain unmet. Even as gold and silver import duties remain unchanged at 6%, despite industry expectations of a cut, duty on platinum findings has been significantly reduced from 25% to 5%; and other tax reforms and business-friendly policies are expected to stimulate demand and strengthen India’s position in the global jewellery market. 

One of the most notable changes is the reduction in customs duty on jewellery articles and parts (HS Code 7113) from 25% to 20%, effective February 2, 2025, that is expected to make jewellery cheaper. Additionally, the duty on platinum findings has been significantly reduced from 25% to 5%, making high-end jewellery more accessible. Beyond tax reforms, the Budget introduced significant pro-business measures. The turnover limit for MSMEs has been raised from Rs 250 crore to Rs 500 crore, allowing small and mid-sized jewellery manufacturers greater access to government schemes and credit facilities. Additionally, the Government has made Budget allocations for upskilling of personnel, that will benefit the industry.  

Industry leaders believe the reduction in personal income tax rates in the Union Budget is a positive move that will significantly boost consumer spending and drive demand for jewellery. MP Ahammed, Chairman, Malabar Group, said, “With personal income tax reform, the Budget will free up disposable income to boost urban consumption. For the retail jewellery sector, a rise in consumption directly translates into stronger demand, fuelling expansion and employment generation.”

Rajesh Rokde, Chairman, All India Gem and Jewellery Domestic Council (GJC), also welcomed the move. “Increase in disposable income is expected to particularly benefit the gold and branded jewellery sectors. The abolition of TDS and TCS on high-value transactions above Rs 50 lakh will streamline operations, ease compliance burdens, and bring more transactions into the formal, hallmarked market. These reforms will foster transparency,” he said. 

Aditya Modak, COO & CFO, P.N. Gadgil & Sons is positive that the increase in the base tax slab to Rs 12 lakh will boost disposable income, enabling more spending on luxury and travel. “This is expected to generate significant buying power across India. Additionally, the unchanged import tax keeps metal prices stable, benefiting both the industry and buyers,” he added. 

Colin Shah, MD, Kama Jewelry, commented, “The reduction of duty on jewellery articles from 25% to 20% is a welcome move. This will definitely boost demand, especially in the luxury segment.” 

Vastupal Ranka, Director, Ranka Jewellers, said maintaining the reduced customs duty on gold and lowering the duty on platinum findings are a positive move, making the metals more affordable in India, boosting sales and helping curb illegal movement. “This strengthens the organized jewellery sector, and benefits exporters. Additionally, income tax relief for the middle class increases disposable income, encouraging consumer spending, which in turn supports the retail and jewellery industries. The Government’s supportive stance toward the sector signals promising growth opportunities in 2025,” he remarked. 

According to Sachin Jain, Regional CEO, India, World Gold Council, the Union Budget is “advantageous” for the gold industry. “Encouraging spending by increasing disposable income, reducing compliance burdens with the omission of TCS above certain limits and initiatives like the Export Promotion Mission, National Manufacturing Mission, and BharatTradeNet digital platform will support the Indian gold industry, contributing to Viksit Bharat 2047. The Budget focuses on financial empowerment, fostering innovation, and inclusive economic growth,” Jain stated. 

The Government’s focus on boosting domestic consumption and exports is also evident in its support for infrastructure, skill development, and investment in manufacturing. TS Kalyanaraman, Managing Director, Kalyan Jewellers, highlighted this, stating, “The Union Budget 2025-26 focuses sharply on economic growth, with key investments in infrastructure, agriculture and manufacturing. A commitment to skill development through Centres of Excellence and global partnerships will expand the talent pool, benefiting industries like jewellery.” 

Vipul Shah, Chairman, GJEPC, welcomed the Export Promotion Mission and BharatTradeNet (BTN) for streamlining trade processes and appreciated the Budget’s support for MSMEs, increased credit access and tariff reforms, which will boost the gem and jewellery sector. “The reduction in Basic Customs Duty on platinum findings to 5% is another positive step, enhancing affordability and consumer demand,” Shah said.  

Akshay Verma, Director, Verma Jewellers said reduction in tariff duty on jewellery parts and cut in customs duty on platinum findings from 25% to 5% will boost domestic demand and enhance the competitiveness of the platinum jewellery industry. “These moves make precious metals more accessible to consumers and strengthen India’s global standing. Overall, this is a commendable move that boosts growth and optimism within the sector,” he said. 

While these measures are promising, some industry expectations remained unmet. Stakeholders were anticipating a reduction in gold import duty to further ease costs for jewellers and consumers. Additionally, there were calls for a dedicated regulator for digital gold to enhance transparency and investor trust. Another major demand was for more favourable terms under the Gold Monetization Scheme to encourage households to deposit idle gold with banks. 

Despite these concerns, the industry remains optimistic about future growth. Suvankar Sen, MD & CEO, Senco Gold & Diamonds, acknowledged the balanced approach of the Budget, saying, “The Budget has set the right objective of driving India’s growth by focusing on middle-class consumption, agriculture and youth empowerment. While gold and silver duties remain unchanged, the policies introduced will help sustain demand and investment in the sector.” 

“Maintaining customs duty on gold and silver at 6% aims to enhance domestic value addition, curb smuggling by making illegal trade less profitable, and boost consumer demand through lower prices. This move is also expected to improve the competitiveness of the jewellery industry by lowering input costs and promoting legal trade channels, ultimately strengthening the sector,” commented Surbhi Shekhar, Chief Marketing Officer, Manoharlal Sarraf Jewellers. 

Removal of IGCR conditions for duty-free imports of Lab-Grown Diamond (LGD) seeds is expected to drive demand in this growing segment. “Relaxed LGD seed import restrictions will support the diamond industry and further strengthen India’s standing in the global market,” noted Renisha Chainani, Research Head, Augmont Gold. 

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