India's gems and jewellery industry is presenting a comprehensive wish list for Budget 2026-27, seeking targeted policy support to navigate challenges from record-high precious metal prices and global trade uncertainties. With gold and silver trading at unprecedented levels, industry leaders are calling for tax rationalisation, structural reforms, and demand-boosting measures to sustain domestic consumption and strengthen export competitiveness.

Record Price Surge Challenges Consumer Demand

The precious metals market has witnessed extraordinary price movements that have significantly impacted consumer affordability. Gold prices have demonstrated remarkable momentum with sustained rallies across multiple years.

Despite this sharp volatility, consumer demand has remained resilient, though more calibrated, highlighting jewellery's dual role as both emotional purchase and store of value.

GST and Tax Reform Priorities

Industry leaders are emphasising affordability as a critical factor for sustained growth. Suvankar Sen, MD & CEO of Senco Gold, highlights the urgent need for regulated small-ticket EMI options for gold jewellery and a comprehensive review of the current 3% GST rate to reduce consumer burden and encourage formal market participation.

Mangesh Chauhan, Managing Director of Sky Gold & Diamonds, advocates for more aggressive GST streamlining on jewellery, proposing a reduction to around 1% – 1.25% to boost formal sales and widen the tax base. This approach aims to stimulate domestic demand while improving compliance in the organised sector.

Import Duty Rationalisation Demands

The industry is seeking comprehensive import duty reforms to enhance competitiveness and reduce input costs. Key proposals include:

• Review of the current 6% gold import duty
• Rationalisation of import duties on gold, silver, platinum, and coloured gemstones
• Reduction of 5% import duty on cut and polished diamonds to 2.5%
• Lower duties on essential manufacturing inputs

These measures are expected to enhance export competitiveness while supporting local manufacturing capabilities.

Diamond Segment Seeks Balanced Support

The diamond industry is calling for differentiated policy approaches to address sector-specific challenges. Jignesh Mehta, MD and Founder of Divine Solitaires, emphasises that geopolitical uncertainty and price volatility continue to impact the natural diamonds segment, advocating for the proposed duty reduction to boost exports, employment, and local manufacturing.

For the emerging lab-grown diamond segment, Anand Lukhi, Founder & CEO of Lukson, believes Budget 2026-27 should recognise its strategic importance through duty rationalisation on raw materials and equipment, manufacturing incentives, and improved MSME credit access.

Infrastructure and Skill Development Focus

Beyond tax reforms, the industry seeks comprehensive infrastructure and human capital development support:

• Focused vocational training for karigars
• Greater technology adoption initiatives
• Flexibility for SEZ units to serve domestic demand
• Investment in design-led skilling programs
• Infrastructure development in export clusters
• Early rollout of Tourist GST Refund scheme at major airports

Sen particularly emphasises leveraging India's household gold holdings of close to 24,000 tonnes through innovative mobilisation mechanisms to unlock significant long-term economic value.

Strategic Vision for Global Competitiveness

The industry's collective vision focuses on positioning India as a global jewellery and diamond powerhouse through balanced policy support. The emphasis on moving from volume-driven exports to high-value branded jewellery reflects the sector's ambition to climb the value chain and capture premium market segments.

With sustained policy focus on affordability, manufacturing excellence, and export competitiveness, the industry believes these measures can stimulate domestic demand, safeguard employment, and sustain export growth amid external uncertainties in the rapidly evolving global marketplace.

Finance Minister Nirmala Sitharaman will present Union Budget 2026 on February 1, 2026, marking her ninth consecutive Budget presentation and creating a historic milestone as the first Union Budget in recent history to be presented on a Sunday. This significant development highlights the evolution of India's budgetary process since independence.

Historical Evolution of India's Budget

The journey of India's Budget presentation has undergone substantial changes since the country's independence. The first Budget of independent India was presented on November 26, 1947, by Finance Minister RK Shanmukham Chetty, establishing the foundation for the nation's fiscal planning process.

The Significant Date Change of 2017

Until 2016, the Union Budget followed a long-standing tradition of being presented on the last working day of February. This practice continued for decades until Finance Minister Arun Jaitley implemented a historic change in 2017, shifting the Budget presentation date to February 1.

The rationale behind this change was multifaceted:

• Process Streamlining: The government aimed to ensure a more timely presentation of the Budget
• Implementation Time: Moving the date forward provided government and stakeholders additional time to implement changes before the financial year begins in April
• Administrative Efficiency: The earlier date allowed for better coordination and planning

Evolution of Budget Presentation Timing

The timing of Budget presentation has also undergone significant transformation. For decades, the Budget was presented at 5 pm, a colonial-era practice that aligned with UK time zones. This tradition was changed in 1999 when Finance Minister Yashwant Sinha moved the Budget presentation timing to 11 am, which has remained the standard time since then.

Union Budget 2026 Expectations

Budget 2026 is expected to focus on India's growth trajectory through strategic allocation to various sectors. The key sectors anticipated to receive attention include:

• Railways and infrastructure development
• Urban development initiatives
• Manufacturing and automotive sectors
• Defence and electronics
• MSME support and development
• Renewable energy and AI technologies

The presentation on a Sunday marks an unusual scheduling decision, as previous Budget presentations have typically been held on weekdays, with some instances on Saturdays. This ninth consecutive Budget by Finance Minister Sitharaman continues her record as one of the longest-serving Finance Ministers in terms of consecutive Budget presentations.