Overall, the Budget is being viewed as structurally positive, with the potential to deepen consumption, formalization and global competitiveness across the jewellery value chain
New Delhi: The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, has drawn largely positive reactions from India’s gems and jewellery industry, with stakeholders highlighting its long-term, stability-driven approach and strong emphasis on infrastructure, MSMEs, exports and ease of doing business. While the Budget did not announce direct incentives for the business of gold or diamonds, industry leaders noted that policy certainty, liquidity support, Customs reforms and technology-led initiatives collectively create a favourable environment for sustainable growth.
The industry’s export-oriented bodies welcomed measures aimed at improving logistics, easing compliance and supporting MSMEs, while domestic trade associations underlined the importance of duty and GST stability amid global volatility. At the same time, some voices expressed disappointment over the absence of targeted support for natural diamonds, even as they acknowledged the broader benefits of skilling, technology and manufacturing-led growth. Overall, the Budget is being viewed as structurally positive, with the potential to deepen consumption, formalization and global competitiveness across the jewellery value chain.
Here are some leading industry voices articulating their views of the Union Budget 2026-27:
Kirit Bhansali, Chairman, Gem & Jewellery Export Promotion Council (GJEPC), said, “We thank the Government for a positive, growth-focused Budget that improves liquidity, supports manufacturing and strengthens exports, with transformative customs reforms, courier export liberalization, SEZ flexibility and extended duty-free imports for lab-grown diamond inputs giving fresh momentum to the gems and jewellery sector.”
Suvankar Sen, MD & CEO, Senco Gold & Diamonds, said, “The Union Finance Minister’s emphasis on long-term macro-economic stability, infrastructure development, MSME growth, technology and AI adoption, alongside support for skill development and inclusive growth, reflects thoughtful long-range policy direction that strengthens consumer confidence and enhances productive capacity across sectors, even without direct incentives for gold.”
Kaushlendra Sinha, CEO, Indian Association for Gold Excellence and Standards (IAGES), stated, “The Union Budget’s focus on economic stability, formalization and structural strengthening provides a constructive backdrop for India’s gold ecosystem, especially at a time of elevated price volatility, where transparency, governance, recognized standards and consumer trust are critical for long-term resilience and nationwide demand expansion.”
Rajesh Rokde, Chairman, All India Gem & Jewellery Domestic Council (GJC), commented, “The Union Budget 2026–27 reflects a stable and sensitive approach towards the gems and jewellery industry, where policy certainty, absence of duty or GST increases, strong MSME support and ease-of-doing-business measures together reinforce confidence and recognize our sector’s contribution to employment and growth.”
Avinash Gupta, All India Gem & Jewellery Domestic Council (GJC), added, “The trade welcomes the Union Budget 2026–27, as stability in Customs duty, improved access to finance, simplified income-tax compliance and MSME-focused measures will enable jewellers across the value chain to plan confidently and pursue sustainable growth amid global uncertainties.”
Jignesh Mehta, MD & Founder, Divine Solitaires, said, “While the Finance Minister’s long-term focus on infrastructure, skills and technology-led growth is positive for manufacturing, the absence of key announcements for the natural diamonds industry was disappointing, as targeted policy support could have strengthened competitiveness, employment and long-term value creation.”
Prithviraj Kothari, MD, RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association (IBJA), said, “The Union Budget 2026-27 focused on sustained 7% growth through fiscal discipline, structural reforms, and people-centric development. The bullion industry had expected a cut in import duty on gold, GST rationalization, export incentives and extended credit support. The Budget announced capital gains tax exemption on RBI Sovereign Gold Bonds, applicable only to original subscribers, not to secondary market buyers, while there were no announcements of any meaningful reduction in gold import duty or GST reforms.
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