Union Budget 2026: If you’re considering buying gold, the upcoming Union Budget for 2026-27 could be significant. The gems and jewelry sector is anticipating several key reforms from the government prior to the budget. With rising prices, sluggish demand, and global competition, the industry is seeking relief measures. They believe that appropriate policy decisions will not only facilitate gold purchases but also make them more affordable.
Import duty should be reduced
The primary request is to lower import duties on raw materials like gold, silver, platinum, and colored gems. India relies heavily on imports for these metals. High duties raise costs, making Indian jewelry pricier in international markets. Reducing these import duties could decrease jewelry prices and enhance exports.
Custom process made easy
The industry is also advocating for the simplification of customs procedures. Currently, lengthy inspections and paperwork slow down exports. By implementing digital documentation, risk-based inspections, and quicker clearances, business operations can be streamlined, leading to shorter delivery times.
GST reduced on gold
GST remains a significant concern in the domestic market. There are demands to cut the existing 3% GST on jewelry down to 1 to 1.25%. The industry argues that high prices are causing customers to delay their purchases. Lowering the GST could make gold more affordable and potentially boost demand.
EMI system should be started for buying jewellery
Additionally, there are calls for the establishment of regulated EMI options for low-value jewelry purchases. This would enable customers to buy gold without excessive financial strain and ensure transparent transactions. India is estimated to hold around 24,000 tons of gold. The budget is anticipated to introduce policies aimed at bringing old or unused gold into the formal economy, thereby reducing reliance on imports and encouraging recycling.