Union Budget 2025: Gem, jewellery industry welcomes govt move to reduce customs duty on platinum findings

The gems and jewellery industry on Saturday welcomed the government's move to reduce the basic customs duty on platinum findings and slashing the jewellery duty in the Union Budget 2025-26.

Gem and Jewellery Export Promotion Council (GJEPC) chairman Vipul Shah said the council welcomes the proposal of creating new tariff items in Chapter 71 so as to distinguish precious metals containing 99.9% or more by weight of silver, containing 99.5% or more by weight of gold, containing 99% or more by weight of platinum under headings 7106, 7108 and 7110, 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 claims of unwarranted customs duty exemptions for the import of platinum under India-UAE CEPA (Comprehensive Economic Partnership Agreement), he said.

"The sector comprises 85-90% of MSMEs and the revision in classification criteria of MSMEs especially with those with turnover from ₹250 crore to ₹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 additional credit of ₹1.5 lakh crore in the next 5 years will benefit and provide a boost to the MSMEs in the sector," Shah added.

He further stated that the government's stable approach to duties and levies across gem and jewellery products will enhance the ease of doing business.

"The Basic Customs duty rate has been reduced from 25% to 5% on platinum findings classified under 7113 will enable consumers to get a new product and increase affordable jewellery sales," he stated.

World Gold Council Regional CEO, India, Sachin Jain said, the 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. The Creation of Export Promotion Mission, a National Manufacturing Mission furthering "Make in India", the National Centres of Excellence for Skilling encouraging MSMEs and digital public infrastructure 'BharatTradeNet' for international trade will support the Indian gold industry and enhance its crucial role in contributing to Viskit Bharat 2047," he said.

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, Jain added.

Kama Jewelry MD Colin Shah said that the reduction of jewellery duty from 25% to 20% is a welcome move.

"For a country like India which 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 findings to 5% is yet another bold move that will prove beneficial for the entire gems and jewellery industry.

The Budget also provided some rejoicing to the diamond sector by removing IGCR conditions for the import of duty-free LGD (Lab Grown Diamond) seeds which will further increase the appeal of LGDs and boost their demand, he added.