The Union Budget 2025-26 presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Saturday received mixed reactions from the diamond and jewellery industry.
Vipul Shah, Chairman, Gem and Jewellery Export Promotion Council (GJEPC), said, “The recognition of exports as the fourth engine of growth and the new Export Promotion Mission with sectoral and ministerial targets, driven jointly by Union Commerce, Finance and MSME ministries will facilitate easy access to export credit… GJEPC welcomes the digital public infrastructure, ‘Bharat Trade Net’ (BTN) for international trade to be set up as a unified platform for trade documentation and financing solutions.”
Thereafter, he added, “GJEPC further welcomes the proposal of new tariff items in Chapter 71 so as to distinguish precious metals – containing 99.9 per cent or more by weight of silver, containing 99.5 per cent or more by weight of gold, containing 99 per cent or more by weight of platinum under headings 7,106, 7,108 and 7,110, respectively. This move aligns with the representation made by GJEPC for addressing the issue of classification of alloys of platinum (predominantly containing gold), which was invariably leading to a claim of unwarranted customs duty exemptions for import of platinum under India-UAE CEPA.”
“The revision in classification criteria of MSMEs especially those with turnover from Rs 250 crore to Rs 500 crore will help them achieve higher efficiencies of scale, technological upgradation, and better access to capital. The extension of credit guarantee cover to MSMEs, leading to an additional credit of Rs 1.5 lakh crore in the next five years will benefit and provide a boost to the MSMEs in the sector,” Shah explained.
The GJEPC chairman, however, requested the finance minister’s support for co-funding global diamond promotion campaigns, the inclusion of jewellery parks in the harmonised infrastructure list, and an Infrastructure Support Fund to develop a gem bourse in Jaipur.
Nainesh Pachhigar, Regional President (Surat), India Bullion and Jewellers Association, said, “There were many expectations for the diamond industry as it has been passing through a rough path of recession for the last two years. We expected the finance minister would declare some relief package for the diamond industry. We have also requested that the 6 per cent duty on gold imports should be reduced to 3 per cent so that the illegal smuggling activities of gold in India can be curbed. Through such a reduction in import duty on gold, we would sustain in the international market and we can compete with China. We will again make such a representation to the finance minister from our association. Our other demand is that the Capital Gain Tax should be removed from the Gems and Jewellery Industry sector… Earlier there was a cash limit of Rs 2 lakh on the gold when its price was Rs 50,000 and today the gold price is Rs 85,000, but the cash limit has remained the same.”
Jagdish Khunt, President, Surat Diamond Association, said, “We are not happy with the budget… We have made representations to declare some economic packages for the diamond polishers who are facing financial crises. There are over four lakh diamond polishers working in the diamond industry in Surat and the recession has affected their lives. We have also demanded that low-interest loans be given to diamond factory owners so that they could survive and it was also not looked into by the finance minister. The diamond industry of Surat is known worldwide as a hub of diamond cutting and polishing, so there were more expectations from the finance minister.”
