The Union Budget 2026–27 has sent a clear signal to gold and silver markets by maintaining a status quo on import duties, as no changes were announced in customs duties on gold and silver, easing concerns of sudden price shocks for jewellers, bullion traders, and consumers.
The Budget proposes a clarification on capital gains tax exemption for Sovereign Gold Bonds(SGBs) by telling capital gains exemption will be available only to individuals who subscribe to SGBs at the time of original issue and hold them continuously until redemption on maturity. Secondary market purchases or premature exits will not qualify for this benefit.
While import duties remain untouched, the Securities Transaction Tax (STT) on derivatives has been increased—futures STT raised to 0.05% and options-related STT to 0.15%—indicating the government’s intent to curb excessive speculative activity while keeping long-term investment channels intact.
KEY HIGHLIGHTS OF THE GEMS & JEWELLERY SECTOR IN THE BUDGET
Although there are no major changes in the sector in the Union Budget 2026, the following are some of the minor changes
Special Economic Zones
- Allowance of sale from SEZ to DTA units at concessional rates of duty by eligible units as a special one-time measure
Diamond
- Extension of customs duty exemption on seeds used in manufacturing of lab grown diamonds till 31.03.2028.
- Extension of import of duty-free sawn diamonds till 31.03.2028
Precious Metals:
Sunset-date of 31.03.2027 for the following entries is being prescribed:
| Sl. No | S.No. of TABLE I in notification No. 45/2025Customs | Brief Description | End date |
| 1 | 192 | Gold dore bar, having gold content not exceeding 95% | 31.03.2027 |
| 2 | 193 | Silver dore bar having silver content not exceeding 95% | 31.03.2027 |
| 3 | 194 | (i)Gold bars, other than tola bars, bearing manufacturer’s or refiner’s engraved serial number and weight expressed in metric units, and gold coins having gold content not below 99.5%, imported by the eligible passenger (ii)Gold in any form other than (i), including tola bars and ornaments, but excluding ornaments studded with stones or pearls | 31.03.2027 |
| 4 | 195 | Silver, in any form including ornaments, but excluding ornaments studded with stones or pearls, imported by the eligible passenger | 31.03.2027 |
GST
- GST rules been amended to extend provision of provisional refund arising out of inverted duty structure.
E-Commerce:
- Removal of the current value cap of ₹10 lakh per consignment on courier exports.
- Improvement in Handling of rejected and returned consignments with effective use of technology for identifying such consignments.
Banking:
- Setting up a “High Level Committee on Banking for Viksit Bharat”, to comprehensively review the sector and align it with India’s next phase of growth, while safeguarding financial stability, inclusion and consumer protection.
Authorised Economic Operators
- Enhancement of duty deferral period for Tier 2 and Tier 3 AEOs from 15 days to 30 days.
- Allowance of eligible manufacturer-importers the same duty deferral facility till 31.03.2028 further encouraging them to get themselves accredited as a full-fledged Tier 3- AEO in due course.
Baggage Rules 2026
- Modified the rules to allow import of precious metal jewellery up to 40 grams for females and 20 grams for males, replacing the earlier value-based limits of ₹1 lakh and ₹50,000 respectively. These rules do not apply to bullion.
Industrial Clusters:
- Introduction of a scheme to revive 200 legacy industrial clusters to improve their cost competitiveness and efficiency through infrastructure and technology upgradation.
Equity Support:
- Introduction of a dedicated ₹10,000 crore SME Growth Fund, to create future Champions, incentivizing enterprises based on select criteria.
- Top up the Self-Reliant India Fund set up in 2021, with ₹2,000 crore to continue support to micro enterprises and maintain their access to risk capital.
Liquidity Support
With TReDS, more than ₹7 lakh crore has been made available to MSMEs. To leverage its full potential, the ollowing has been announced:
(i) mandate TReDS as the transaction settlement platform for all purchases from MSMEs by CPSEs, serving as a benchmark for other corporates;
(ii) introduce a credit guarantee support mechanism through CGTMSE for invoice discounting on TReDS platform;
(iii) link GeM with TReDS for sharing information with financiers about government purchases from MSMEs, encouraging cheaper and quicker financing;
(iv) introduce TReDS receivables as asset-backed securities, helping develop a secondary market, enhancing liquidity and settlement of transactions.
Professional Support:
Facilitation of Professional Institutions such as ICAI, ICSI, ICMAI to design short-term, modular courses and practical tools to develop a cadre of ‘Corporate Mitras’, especially in Tier-II and Tier-III towns. These accredited para-professionals will help MSMEs meet compliance requirements at affordable costs.
Following the commencement of Union Budget speech, Shri Kirit Bhansali, Chairman, GJEPC,
“We thank the Government for a positive, growth-focused Budget that addresses key bottlenecks and gives fresh momentum to India’s gems and jewellery sector. It improves liquidity, supports manufacturing and strengthens exports across the value chain.
GJEPC welcomes the Union Budget’s transformative customs reforms, recommended for adoption. Trust-based processes, digital appraisals, and simplified clearances will slash delays and costs, accelerating business growth.
We also applaud 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 removal of the ₹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.
Filing the Bill of Entry in advance for trusted importers will enable immediate clearance of goods on arrival, reducing waiting time at ports, speeding up deliveries and lowering logistics costs for exporters and manufacturers.
With MSMEs forming over 80% of our industry, measures such as the INR 10,000 crore SME Growth Fund, INR 2,000 crore support for micro units and INR 7,00,000 crore liquidity through TReDS, along with stronger banks, restructuring NBFCs will ease credit and drive expansion.
Extending the duty deferment period for Authorised Economic Operators (AEOs) from 15 to 30 days and offering similar benefits to eligible manufacturers will improve cash flow, reduce compliance burden and enable faster, helping exporters move goods quicker and operate with greater ease.
Extending duty-free import of Lab-Grown Diamond (LGD) seeds and Sawn Diamonds till March 2028 is a timely and practical step. It keeps input costs low, supports production and exports, and safeguards a fast-growing segment where India already leads globally, helping secure the future of our industry.
Setting up a new National Institute of Design will strengthen design talent and innovation in the country. For the gems and jewellery sector, this means better product development, contemporary styling and stronger branding, helping Indian manufacturers move up the value chain and compete more effectively in global markets.
Overall, this Budget gives the right push for growth towards Viksit Bharat and moves us closer to our goal of scaling exports to $100 billion by 2047.”
Gem & Jewellery Domestic Council (GJC) Reaction
Reacting to the Union Budget 2026–27, the leadership of the All India Gem & Jewellery Domestic Council (GJC) highlighted the government’s balanced and industry-sensitive approach towards the gems and jewellery sector.
Mr. Rajesh Rokde, Chairman, All India Gem & Jewellery Domestic Council (GJC), said, “The Union Budget 2026–27 reflects a stable and sensitive approach towards the Gems & Jewellery industry. The absence of any increase in customs duty or GST, continued policy certainty, strong MSME and cluster support, ease-of-doing-business measures, and litigation-reducing income-tax reforms together provide confidence to the trade and reinforce the Government’s recognition of our sector as a key contributor to employment, exports, and economic growth.”
Echoing similar sentiments, Mr. Avinash Gupta, Vice Chairman, All India Gem & Jewellery Domestic Council (GJC), stated “The Gems & Jewellery trade welcomes the Union Budget 2026-27. The absence of any increase in customs duty, combined with strong MSME support, improved access to finance, simplified income-tax compliance, and enhanced ease-of-doing-business measures, will enable jewellers across the value chain to plan confidently and focus on sustainable growth amid global uncertainties.”
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