Editor’s Note
As India prepares its 2026-27 Union Budget, key industry groups are calling for policy reforms to strengthen the gold, gem, and jewellery sectors. Their proposals aim to boost sustainable growth and competitiveness, reflecting gold’s dual role as both a traditional savings instrument and a modern financial asset.
Ahead of the Union Budget 2026-27, industry bodies representing India’s gold, gem, jewellery, and mining sectors are collectively advocating for a suite of policy adjustments and fiscal measures. The underlying objective is to promote sustainable growth, enhance global competitiveness, and unlock untapped domestic potential. Market participants are closely watching the government’s stance on gold, not only as a savings vehicle but also as a critical portfolio asset. Demands are being made for stability on import duties and taxation to curb market volatility.
The jewellery sector is at the forefront of demands for targeted tax rationalization. The All India Gem & Jewellery Domestic Council (GJC) has formally proposed reducing the current 3% GST on gold and silver jewellery to between 1.25% and 1.5%. This adjustment is considered crucial to ease working capital pressure and stimulate demand, particularly in middle-income and rural markets.
Beyond domestic sales, export competitiveness is a key focus.
Simplified criteria for allowable losses and SEZ property tax relief are also on the agenda.
The Gem & Jewellery Export Promotion Council (GJEPC) has also promoted duty rationalization to make Indian exports more cost-effective. With a projected CAGR between 8.9% and 9.5% for the broader gem and jewellery market, strong growth is forecast from USD 128 billion by 2029 to USD 227.66 billion by 2033.
Industry leaders are highlighting the vast quantity of passive domestic gold.
SGBs offer a 2.5% annual interest and tax-free capital gains on maturity. Digital gold, he argues, could unlock significant liquidity in line with national economic growth aspirations.
The mining sector’s primary concern is establishing a self-reliant ecosystem for critical minerals.
Comprehensive import duty rationalization for critical minerals has also been requested to improve project economics and domestic processing capabilities. Deloitte India has also recommended that the budget focus extend to include targeted support for the processing and recycling of critical minerals and rare earths beyond exploration, along with risk-mitigation mechanisms for foreign mineral assets. The National Critical Minerals Mission (NCMM), approved with a significant outlay, provides a strategic foundation, but industry stakeholders seek clear operational frameworks and regulatory clarity to attract private capital and technology partnerships.