The Union Budget 2026–27 has been welcomed by the Gems and Jewellery Export Promotion Council (GJEPC) as a constructive and forward-looking roadmap that addresses long-standing challenges while creating fresh growth opportunities for the industry.
Kirit Bhansali, Chairman, GJEPC, said the Budget improves liquidity, strengthens manufacturing, and enhances export competitiveness across the entire value chain. He noted that the government’s approach signals confidence in the sector’s role as a major employment generator and foreign exchange earner.
A key highlight for the industry is the Budget’s focus on customs modernisation. The proposed shift towards trust-based systems, digital appraisals and simplified clearance procedures is expected to significantly reduce transaction time and compliance costs, enabling faster movement of goods and smoother international trade.
GJEPC also welcomed the decision to allow restricted sales from Special Economic Zones (SEZs) into the Domestic Tariff Area at concessional duties. This move is expected to help manufacturers utilise idle capacity, protect jobs and maintain stability at a time when global demand remains uneven and US tariff pressures persist.
The removal of the ₹10 lakh cap on courier exports was described as a major boost for jewellery e-commerce. The change will allow MSMEs, artisans and emerging brands to access overseas markets directly, while simplifying returns and reducing turnaround time—critical factors in digital retail.
Further relief comes from the provision allowing advance filing of Bills of Entry for trusted importers, enabling immediate clearance upon arrival of goods. This is expected to lower port congestion, cut logistics costs and improve delivery timelines for exporters and manufacturers.
With MSMEs accounting for more than 80% of the gems and jewellery sector, Bhansali highlighted the importance of enhanced credit support. Measures such as the ₹10,000 crore SME Growth Fund, ₹2,000 crore allocation for micro units, and ₹7 lakh crore liquidity infusion through TReDS, along with stronger banking and NBFC restructuring, are expected to ease access to finance and fuel expansion.
The Budget’s decision to extend the duty deferment period for Authorised Economic Operators (AEOs) from 15 to 30 days, and to extend similar benefits to eligible manufacturers, is set to improve cash flow, reduce compliance burden and accelerate customs clearance.
Another significant announcement is the extension of duty-free imports of Lab-Grown Diamond (LGD) seeds and sawn diamonds until March 2028. GJEPC views this as a timely move to keep input costs competitive, support exports and secure India’s leadership in a fast-growing global segment.
The proposal to establish a new National Institute of Design (NID) was also welcomed as a strategic investment in design capability. For the gems and jewellery industry, this is expected to enhance product innovation, contemporary aesthetics and brand positioning, helping Indian players move up the global value chain.
Summing up, Bhansali said the Budget provides the right momentum towards Viksit Bharat, while aligning closely with the industry’s long-term vision of achieving $100 billion in exports by 2047.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
