The Union Budget 2025 may present an opportunity for the government to empower the jewellery sector, which contributes nearly 7 per cent to India’s GDP and employs over 5 million people, as per the Gem and Jewellery Export Promotion Council (GJEPC).
Additionally, as per the World Gold Council, India is responsible for nearly 27 per cent of global gold demand, yet we continue to face competitive challenges in the international market.
Experts say that India’s jewellery industry is at a pivotal stage, experiencing robust growth, increasing transparency, and shifting toward better-organised trade. Moreover, with the global luxury market expected to grow at a compound annual rate of 5-6 per cent through 2027 (according to Bain and Company), it is time to position India as a leading destination for high-value, handcrafted jewellery.
“A reduction in the current 10.75 per cent import duty on gold could significantly enhance affordability for consumers, boost domestic demand, and curb unregulated trade, which remains a pressing concern for the industry. Policy reforms such as easing GST rates on precious metals and streamlining compliance norms for exports can bolster our global standing and encourage greater participation from smaller businesses and artisans. Initiatives like skill development programs for artisans and incentives for sustainable and innovative practices in the sector can further drive this vision. We hope this year’s budget paves the way for growth, affordability, and innovation in the jewellery sector, ensuring that India continues to shine as a global leader in fine craftsmanship,” remarked Sumit Dassani, Partner, Dassani Brothers.
Many jewellers in the segment feel that initiatives like further reductions in import duties and strengthening gold monetisation schemes can enhance efficiency and boost demand further.
“The success of recent jewellery industry IPOs underscores the sector’s growing compliance and credibility, opening doors to capital markets and encouraging more players to adopt organised practices.
“The industry’s export potential, contributing 5 per cent to India’s total exports, can be further harnessed with policies that optimise gold circulation and incentivise sustainable practices to boost jewellery exports,” said Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers.
Besides, many jewellers are also expecting the budget to bring in measures that support small and emerging brands which are trying to reimagine how jewellery is designed, worn, and experienced.
“With the industry projected to grow at a CAGR of 8.34 per cent between 2023 and 2028, initiatives such as reduced import duties on raw materials, tax incentives for domestic manufacturers, and enhanced support for skill development programs could significantly strengthen India’s position as a global leader in jewellery innovation. Furthermore, investments in e-commerce infrastructure and digital transformation will empower brands to scale and connect with a broader audience, both locally and internationally,” pointed out Suhani, co-founder of a jewellery brand known as Nishani.