Editor’s Note
This article outlines the high expectations for India’s upcoming Union Budget 2026-27 within the gold and jewelry sector, as stakeholders seek government measures to address soaring prices.
The Union Budget 2026-27 is set to be extremely important for people associated with gold and jewelry. At present, gold prices are rising at a galloping pace. In such a scenario, common people and those associated with the jewelry industry are hoping for some relief from the government.
Gold prices are touching the sky. It is considered the most reliable means of saving and investment. Ten grams of 24-carat gold has now reached between 1.5 to 1.6 lakh rupees. In such a situation, people’s eyes are fixed on the government regarding the Union Budget 2026-27. People in the gold industry want changes in the budget that would bring gold locked in domestic savings into the economy, make jewelry cheaper, and boost exports.
In fact, in the international market, gold is around $5,000 and silver is near $100. The reasons for the surge in gold prices are global tensions, the dispute related to Greenland, and the weakness of the rupee. Experts say that in the budget, tax rules should be simplified, digital gold should be promoted, and GST on jewelry should be reduced.
This was stated by Chetan Thadeshwar, MD of Shringaar House of Mangalsutra Limited.
Experts from the gold industry say the government should view gold not just as jewelry but also as an investment. According to The Economic Times, Jashan Arora, Director of Master Trust Group, explained that frequent changes in import duty and taxes on gold cause prices to suddenly increase, which shocks common people. Additionally, it is also essential to restart the Sovereign Gold Bond (SGB) scheme. This scheme was previously attractive to investors because the government gave 2.5% interest and there were tax benefits. It was discontinued in 2024.
Experts want the government to promote digital gold—for example, by running awareness campaigns or offering tax exemptions. This would ensure that household gold does not remain idle but enters the economy.
Currently, a 3% GST is levied on jewelry. The All India Gem & Jewellery Domestic Council (GJC) is saying that it should be reduced to 1.25% or 1.5%. This would make jewelry cheaper, leading to more purchases by the middle class and villagers. There will also be less pressure on working capital.