The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has maintained the basic customs duty on gold imports at 6%. However, a new tariff line has been introduced for gold and silver, likely aimed at better classification and regulation. While the full implications remain unclear, this development could affect how these metals are taxed or tracked.  

Duty Cuts for Jewellery and Platinum Findings  

The customs duty on jewellery and related components, classified under item code 7113, has been reduced from 25% to 20%, effective February 2, 2025. This reduction is expected to benefit retailers and lower costs for consumers. Additionally, the duty on platinum findings has been slashed from 25% to 5%, offering substantial relief to manufacturers by reducing input costs. 

Industry Expectations vs. Reality

The jewellery industry had hoped for a reduction in import duties and GST rates, a cut in gold import duty from 6% to 3%, and government-backed campaigns to promote platinum and diamonds. Stakeholders also sought better regulation of digital gold. While the platinum duty reduction was welcomed, other expectations were left unmet.  

Growth Potential

The duty cuts are anticipated to encourage greater design experimentation and meet the rising demand for premium jewellery products. The platinum duty reduction, in particular, positions India for growth in the global jewellery market by fostering cost-effective production and boosting export potential.  

The industry remains optimistic that these reforms will promote sustainable growth and enhance India's position in the global jewellery landscape.