Jewellery Industry Applauds Budget 2025: Customs Duty Reductions Spark Optimism

The jewellery industry welcomes the reduction in basic customs duty on platinum findings and jewellery, announced in the Union Budget 2025-26. The changes aim to boost efficiency, growth, and ease of doing business, especially benefiting MSMEs. The budget's focus on spending and domestic demand is seen as advantageous.

The jewellery industry expressed strong approval for the Union Budget 2025-26 on Saturday, particularly the government's decision to reduce the basic customs duty on platinum findings and lower jewellery duty. The industry views these measures as steps toward greater efficiency and growth.

Vipul Shah, Chairman of the Gem and Jewellery Export Promotion Council, highlighted the new tariff items in Chapter 71, designed to better classify precious metals, as a positive outcome of ongoing representation efforts. This change addresses issues with import duty exemptions under the India-UAE Comprehensive Economic Partnership Agreement.

The budget also promises enhanced credit guarantees, extending Rs 1.5 lakh crore of additional credit to MSMEs over the next five years, providing a vital boost to a sector heavily comprised of smaller enterprises. Industry leaders noted that reduced customs duties, particularly for the gold sector, would elevate domestic demand, aligning with broader economic strategies like 'Make in India.'

(With inputs from agencies.)