Budget 2026: Experts call for gold bonds revival, digital incentives and GST relief for jewellery

As the Union Budget 2026–27 approaches, experts across the gold, jewellery, gems and mining sectors are calling for policy continuity, tax rationalisation and measures that unlock household savings, strengthen exports and improve project viability.

Market participants say the Budget will be closely scrutinised for its stance on gold as both a household savings instrument and a portfolio asset.

Jashan Arora, Director at Master Trust Group, said stability in import duties and taxation is key to preventing price shocks, while fiscal discipline, inflation management, and currency stability will influence market sentiment.

GST relief and industry competitiveness

The jewellery sector seeks targeted tax rationalisation to boost domestic demand and maintain global competitiveness.

The All India Gem & Jewellery Domestic Council (GJC) has requested a GST cut on gold and silver jewellery from 3% to 1.25–1.5% to ease working capital pressures.

Neil Sonawala, Chairman of Zen Diamond India, said rationalising import duties on gold and diamonds, incentivising organised retail, and supporting contemporary, design-led demand will help sustain the sector’s 8–10% annual growth.

Push for digital gold and revival of SGBs

Mahendra Luniya, Chairman of Vighnharata Gold, highlighted that a large portion of household gold remains idle. He urged the government to promote digital gold adoption and reconsider the reintroduction of SGBs, which previously channelled household savings into productive economic use without fiscal burden.

Digital gold, he added, could unlock liquidity and accelerate economic growth in line with the Viksit Bharat 2047 vision.

Exports and duty rationalisation

Export competitiveness is a priority.

Colin Shah, MD of Kama Jewelry, called for a predictable tax regime for rough, cut, and polished diamonds, coloured gemstones, and jewellery manufacturing, alongside simplified norms for permissible losses and SEZ property tax relief.

Jignesh Mehta, MD and Founder of Divine Solitaires, urged reducing import duties on cut and polished diamonds and coloured gemstones to strengthen India’s position as a global diamond hub, support exports, and generate employment.

Critical minerals: Policy certainty needed

The mining sector is looking for decisive action to build a self-reliant critical minerals ecosystem.

Hanuma Prasad Modali, MD & CEO of Deccan Gold Mines Ltd., highlighted the need for faster project approvals, time-bound land and forest clearances, access to high-resolution geological data, and broader import duty rationalisation for critical minerals.

These measures, he said, would improve project economics, strengthen domestic processing, and attract long-term investment while maintaining environmental safeguards.