India eye on Viksit Bharat 2047

Key industry players & Budget 2025-26 

Key industry players have shared their view on the recently pronounced Union Budget 2025-26. Let’s peep-up into the expressions!

Vaishali Banerjee, Managing Director, India at Platinum Guild International: "We sincerely thank the Honourable Finance Minister for presenting a robust budget. 

The reduction in the customs duty from 25% to 6.4% on platinum findings and the reduction in the tariff rate from 25% to 20% on finished jewellery— is a significant step. 

We are confident that these measures will stimulate renewed demand and drive growth for platinum in the coming years.”

Sachin Jain, Regional CEO, India, World Gold Council: "The fiscal budget announced by Finance Minister Nirmala Sitharaman is advantageous for the gold industry as it increases disposable income, encourages spending, and promotes economic growth across various income levels. 

The omission of TCS above certain limits reduces compliance burdens and enhances the ease of doing business. Creation of Export Promotion Mission, National Manufacturing Mission furthering “Make in India”, the National Centres of Excellence for Skilling encouraging MSME’s and digital public infrastructure ‘BharatTradeNet’ for international trade will support the Indian gold industry and enhance its crucial role in contributing to Viksit Bharat 2047. 

Simplification and reduction of taxes positively impact the Indian middle class and salaried individuals, while also supporting farmers, businesses, and investments. With a focus on financial empowerment and ease of living, the government aims to foster innovation, artificial intelligence, infrastructure development, and inclusive economic growth. Overall, this consumption-led budget prioritises both investments and spending, with the increase in disposable incomes due to an enhanced tax exemption limit expected to boost overall consumer demand, including that for gold and jewellery."

Colin Shah, MD, Kama Jewelry: “The reduction of Jewellery duty from 25% to 20% is a welcome move. For a country like India who is known for its high jewellery consumption, this will definitely boost the demand in the domestic market especially in luxury. Similarly, slashing of duty on platinum finding from 25% to 5% is yet another bold move which will prove beneficial for the entire gems and jewellery industry.  

One of the biggest positives of the budget was the government acknowledging the MSME sector as one of the four engines that will power India's growth. Under this, increasing the MSME turnover limit from Rs. 250 to Rs. 500 Cr is another bold announcement which will propel the growth and strengthen the MSMEs.  

The budget also provided some rejoice to the diamond sector by removing IGCR condition for import of duty free LGD (Lab Grown Diamond) seeds which will further increase the appeal of LGDs and boost its demand. Provision of a separate HS code for platinum and gold alloys is another positive step that will prevent malpractices and ensure fair play in the industry.”

Dr. Renisha Chainani, Research Head, Augmont: “With the primary goal of maintaining the growing momentum of Viksit Bharat, the finance minister has announced a populist Union Budget 2025. The budget has established the correct goal to propel India's economy by emphasizing middle-class consumption, the agricultural sector, which will boost rural demand and output, and women and youth, which will propel further growth in India.    

The import duties cut/rise on gold and silver have not been announced, as few market participants anticipated. A few significant announcements, nevertheless, will be advantageous for the whole gem and jewellery sector: 

1: The Budget included a new tariff line to clearly distinguish imports of gold in bar form from those in other forms, considering the disruption of the market created by imports of platinum alloy. A new tariff line has been established to differentiate precious metals; items that contain 99.9% or more silver by weight, 99.5% or more gold, and 99.0% or more platinum will be categorized under headings 7106, 7108, and 7110, respectively.  

2: Additionally, the 25% customs tariffs on gold jewellery items have been lowered from 25% to 20%. Platinum Findings' customs duty has been lowered from 25% to 5% previously. This step will increase demand for high-end luxury gold and platinum jewellery.  

3: Thirdly, the increase in the turnover limit for MSMEs from Rs 250 crore to Rs 500 crore will also enable bullion market participants to expand and prosper. 4: By lifting the IGCR restriction on the import of duty-free LGD (Lab Grown Diamond) seeds, the budget also gave the diamond industry some relief. This will make LGDs even more appealing and stimulate demand for them.”