In a major relief for India’s gem and jewellery export industry, the Ministry of Finance has announced a sharp increase in duty drawback rates for several categories of gold and silver jewellery exports. The revision is expected to improve exporters’ cash flow, reduce working capital pressure and make Indian jewellery more competitive in international markets amid elevated precious metal prices.
The revised rates have been notified by the Department of Revenue through Notification No. 64/2026-Customs (N.T.), issued on 16 July 2026, under Chapter 71 of the Customs Tariff. The updated rates are effective immediately.
Revised Duty Drawback Rates
| Tariff Item | Earlier Rate (₹) | Revised Rate (₹) |
|---|---|---|
| 711301 | 773.17 | 1,851.99 |
| 711302 | 14,990.66 | 29,501.09 |
| 711401 | 14,990.66 | 29,501.09 |
The revision follows a sustained increase in gold and silver prices, which has significantly raised the duties and taxes embedded in jewellery exports. Since the duty drawback mechanism is intended to reimburse exporters for duties paid on inputs used in manufacturing export products, industry stakeholders had argued that the earlier rates no longer reflected the actual cost burden.
With the revised notification, exporters will now be able to recover a substantially higher portion of these input-related duties. The enhanced drawback rates are expected to strengthen liquidity, lower financing costs, improve export pricing and enhance profit margins, particularly for micro, small and medium-sized jewellery manufacturers (MSMEs).
The revision also addresses a long-standing demand from the Gem & Jewellery Export Promotion Council (GJEPC), which had urged the government to align the All Industry Rates (AIR) of Duty Drawback with prevailing precious metal prices. The Council maintained that an updated reimbursement structure was essential to preserve the competitiveness of Indian jewellery exporters in the global marketplace.
The government’s decision is being viewed as a timely policy intervention that supports exporters amid volatile bullion prices while reinforcing India’s position as a leading global hub for jewellery manufacturing and exports.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
