With gold and silver prices hovering near record highs, the jewellery industry is looking to Union Budget 2026 for relief. Trade bodies believe that cuts in import duty and GST could help ease prices for consumers and revive slowing demand.
Import duty reduction in focus
Currently, India imposes around a 6 per cent import duty on gold and silver. Jewellers argue that this has added significantly to domestic prices, especially when global bullion rates are already elevated. Industry players are pushing for a reduction to 3–4 per cent, saying it would lower costs, discourage smuggling and support the organised market. A duty cut could also improve availability of raw materials for manufacturers and stabilise retail prices.
GST cut seen as demand booster
Another key demand is a reduction in GST on gold jewellery, which stands at 3 per cent. The industry has suggested lowering it to around 1–1.25 per cent to make jewellery more affordable.
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Reportedly, Jewellers say high prices have dampened consumer interest, particularly outside peak wedding and festive seasons. A lower GST, they believe, could help revive footfall and formal sales.
The government will have to balance industry expectations with revenue concerns and trade considerations. Whether Budget 2026 delivers meaningful relief for gold and silver buyers remains to be seen when the proposals are announced.
