Union Budget 2026-27 makes a strong push for MSMEs, with a Rs 10,000-crore SME Growth Fund; besides, it enables faster payments via mandatory TReDS for CPSE purchases. Overall, the Budget emphasizes fiscal prudence, infrastructure creation, and ease of doing business. For a sector navigating global uncertainty, shifting consumer preferences, and rising compliance standards, it is stability that the enabler.
The Union Budget 2026–27, presented against the backdrop of a moderating global economy and steady domestic consumption, struck a largely balanced note for India’s gems and jewellery industry. While the Budget stopped short of specific announcements for the gems and jewellery industry, it sent out clear signals of continuity and export competitiveness.
The key takeaways for the gems and jewellery industry are:
The Budget 2026, thus, focuses on stability, liquidity and ease of doing business. There are no adverse changes to customs duties on gold, silver or diamonds — an outcome the industry had been keenly watching for, especially after the duty recalibration of recent years.
The government’s continued thrust on exports, through measures aimed at strengthening manufacturing clusters, improving logistics infrastructure, and streamlining trade facilitation, is resonating strongly with the gems and jewellery sector.
While the industry had hoped for more targeted incentives, such as rationalization of GST on jewellery, and additional concessions for exports, it is relieved that stability has been maintained.
Here are the reactions of industry leaders to Budget 2026-27.
The removal of the Rs 10-lakh cap on courier exports is a big boost for e-commerce, enabling MSMEs, artisans and small jewellery brands to reach global buyers directly, with smoother handling of returns and quicker turnaround.
GJEPC applauds the limited sales from SEZs to the Domestic Tariff Area at concessional duties. This will enable factories to utilize idle capacity, safeguard jobs, and strengthen trade amid US tariffs and global demand volatility.
The Union Minister’s emphasis on long term macroeconomic stability, infrastructure development, MSME growth, and the push toward technology and AI adoption, alongside support for skill development, women empowerment, research and development, and knowledge hubs, reflects thoughtful long range policy direction. This kind of structural planning strengthens consumer confidence and enhances productive capacity across sectors. Even in the absence of direct incentives for the gold industry, measures supporting exports, imports, global market integration and SEZ ecosystems point to a forward looking and self- reliant economic vision.
We appreciate the government’s long-term thinking, particularly the continued thrust on inclusive growth. As infrastructure and income levels rise, consumption is expected to deepen significantly across Tier-II, Tier-III, Tier-IV cities, and smaller towns, which will be a key driver for organized retail and jewellery demand. For a company with a strong business focus and manufacturing base in eastern India, the emphasis on skilling and regional development is especially encouraging, as it will help expand the workforce and bring more professionally trained talent into the sector.
With gold and silver markets witnessing strong investment interest ahead of the Budget, the absence of specific sector measures also creates an opportunity for closer industry government collaboration on future frameworks that encourage innovation, value addition, and formalisation. Overall, this is a strategically oriented, long-term Budget that supports sustainable and broad-based economic growth.
While the Finance Minister’s long-term focus on infrastructure development, skill development, and AI/technology-enabled growth elevate the manufacturing ecosystem at a broader level, the absence of key announcements for the natural diamonds industry and the gems and jewellery sector was a disappointment.
We were expecting more targeted reforms, given India’s position as one of the largest diamond manufacturing and processing hubs globally. While macro-level investments in skills, labour and technology are welcome, sector-specific policy support would have gone a long way in strengthening competitiveness, employment and long-term value creation for the industry.
The Union Budget’s focus on economic stability, formalisation, and structural strengthening provides a constructive backdrop for India’s gold ecosystem. At a time of elevated gold and silver price volatility, the industry’s commitment through IAGES to transparency, trust, governance, and recognised standards across the value chain is critical to sustaining consumer confidence and long-term resilience. As demand expands nationwide, including fast-growing markets beyond metros, aligning businesses with excellence and compliance benchmarks will help build a more credible, competitive, and globally respected gold industry.
Union Budget 2026–27 focused on sustained 7% growth through fiscal discipline, structural reforms, and people-centric development. It prioritised manufacturing, MSMEs, services, infrastructure, energy security, and trust-based governance, while advancing Viksit Bharat via inclusive growth, financial stability, and ease of doing business. The bullion industry had expected a cut in import duty on gold, GST rationalisation, 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.
Correction in Gold Silver have almost Equalled to 30% from high. If Both these commodities dont fall anymore now in coming week we may see a stability soon. But rise is Nowhere expected. Capital Loss have been booked almost by every trader.
Gold Future And Silver Future depends on Next Week closure.
Entry levels still not viable at current situation.
Overall, I think this year’s Budget was pragmatic and industry-friendly. The Finance Minister struck the right balance between growth support and stability, especially for MSMEs and organised sectors like jewellery. By keeping GST and gold duties unchanged, the Budget removed pricing uncertainty, which is crucial for our business planning.
Initiatives like faster payments through TReDS and simplified export procedures will ease working capital pressure and boost competitiveness. I believe this Budget sets a solid foundation for sustainable growth, particularly for manufacturers and exporters, without overburdening compliance.
Budget 2026 strikes a pragmatic balance between fiscal discipline and consumption-led growth, which is critical for the jewellery industry. The continued focus on stable customs duties on gold and inputs brings much-needed predictability to the sector, allowing brands to plan pricing and inventory with greater confidence. Measures that support disposable income and urban consumption will directly benefit discretionary categories such as fine jewellery. As an industry rooted in tradition yet driven by evolving consumer aspirations, this budget provides a steady foundation for sustainable growth, innovation in design, and deeper market penetration across India.
The Union Budget 2026–27 reinforces confidence in the economy by backing growth of around 7% while staying on a fiscal consolidation path, with the deficit targeted to decline from 4.8% in FY25 to 4.4% in FY26. This focus on macroeconomic stability is reassuring for households and businesses. Measures such as TDS rationalisation and lower TCS on education expenses abroad should boost disposable incomes and discretionary spending and this is a welcome measure. The continued emphasis on MSMEs, credit availability and formalisation is expected to support jewellers, particularly in Tier-II, Tier-III and rural markets.
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