Gold Price Budget 2026: Gold prices are skyrocketing. It is considered the most reliable means of savings and investment. 10 grams of 24-carat gold now costs between Rs 1.5 lakh and Rs 1.6 lakh. Consequently, people are keenly watching the government regarding the Union Budget 2026-27. Those in the gold industry want changes in the budget that will bring gold locked in domestic savings into the economy, make jewelry cheaper, and boost exports.
In fact, in the international market, gold is hovering around $5,000 and silver around $100. The rise in gold prices is due to global tensions, the Greenland dispute, and the weakening rupee. Experts say the budget should simplify tax rules, promote digital gold, and reduce GST on jewelry.
Chetan Thadeshwar, MD of Shringar House of Mangalsutra Ltd., says that in the wake of the Union Budget 2026, strengthening domestic consumption should be a key macroeconomic priority. Rising inflation has put pressure on household purchasing power. A consumer-friendly budget—one that includes rationalization of gold import duties, stability in indirect taxes, and affordability-enhancing measures—is crucial. This increased demand will positively impact the entire value chain of the jewelry industry, boosting manufacturing, retail, exports, and employment.
Gold industry experts say the government should view gold not just as jewelry but also as an investment. According to the reports, Master Trust Group Director Jashan Arora explained that frequent changes in import duties and taxes on gold lead to sudden price increases, shocking the public. It’s also important to revive the State Gold and Silver (SGB) scheme. This scheme was previously attractive to investors because the government offered 2.5% interest and tax benefits. It was discontinued in 2024.
Experts want the government to promote digital gold – such as through awareness campaigns or tax breaks. This will help keep household gold from going to waste and instead bring it into the economy.
Relief in GST
Currently, 3% GST is levied on jewelry. The All India Gem and Jewelry Domestic Council (GJC) is calling for a reduction to 1.25% or 1.5%. This will make jewelry cheaper, encourage more purchases by the middle class and rural residents, and reduce pressure on working capital.