The proposals include tax, duty and regulatory reforms to boost India’s gems and jewellery competitiveness, covering diamond trading, import duties, exporter incentives, SEZ flexibility, customs simplification, tourist tax refunds and continued support for lab-grown diamond growth
Mumbai: In its pre-Budget recommendations to Finance Minister Nirmala Sitharaman, the Gem & Jewellery Export Promotion Council (GJEPC) has urged the Government to consider targeted duty rationalization and procedural reforms that aim to create a more enabling policy environment to support sustainable growth, innovation, and value addition across the entire gem and jewellery value chain.
Kirit Bhansali, Chairman, GJEPC, said, “Our pre-Budget proposals are focused on making Indian exports more cost-efficient, strengthening SEZ operations, and improving policy frameworks that encourage investment and skill development. A key objective is also to establish India as a global diamond trading hub, complementing its position as the world’s leading cutting and polishing centre. With supportive reforms and a stable trade ecosystem, India can not only weather current global challenges but also lead the next phase of growth in the international jewellery market.”
Key Recommendations From GJEPC
- Liberalised Taxation for Rough Diamond Trading
GJEPC has proposed a predictable, low-tax regime for foreign mining companies and global brokers to help India emerge as an international diamond trading and price-discovery hub. - Duty Rationalization on Cut and Polished Stones
The Council has recommended lowering import duties on cut and polished diamonds and gemstones, and removing duties on rough gemstones, to protect competitiveness, manufacturing and exports. - Ad-Valorem Duty Drawback for Gold and Silver Jewellery
GJEPC has called for a shift to value-based duty drawback to ensure fair, proportionate refunds for jewellery exporters amid volatile gold and silver prices. - Inclusion of Platinum and Gold Articles in Duty Drawback
The proposal seeks to extend duty drawback benefits to platinum jewellery and gold articles to create parity for DTA exporters and support diversification into high-value segments. - Tax Refund Scheme for Foreign Tourists
GJEPC has urged a comprehensive tax refund mechanism covering all applicable duties and taxes to make Indian jewellery more attractive to international shoppers and boost tourism-led retail. - Enhancing SEZ Flexibility
The Council has recommended greater operational flexibility for SEZ units, including domestic job work and DTA clearance of inventory, to protect capacity utilisation and employment during demand cycles. - Customs Act Amendments and Procedure Simplification
GJEPC has sought customs reforms such as risk-based clearance, digital appraisals and uniform SOPs to improve speed, transparency and ease of doing business across ports. - Extension of Duty Exemption on LGD Seeds
The Council has recommended extending duty exemption on lab-grown diamond seeds beyond March 2026 to sustain cost competitiveness, production growth and India’s global leadership in LGDs.
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