The countdown to Finance Minister Nirmala Sitharaman’s Union Budget 2025 is on, and the jewellery sector is abuzz with anticipation. While the 2024 budget’s reduction in gold and silver import duties to 6 per cent offered a glimmer of hope, the industry is seeking further measures to reignite consumer demand.
The import duty cut, intended to make precious metals more accessible and curb smuggling, has yielded mixed results. While some retailers have reported improved profit margins and increased export competitiveness, the anticipated surge in sales volumes has yet to fully materialize. Industry voices suggest that despite the duty reduction, global economic headwinds and fluctuating gold prices have dampened consumer enthusiasm. The allure of purchasing gold abroad has also diminished, leading to a rise in domestic ornament sales. However, affordability remains a key concern for many.
Looking ahead to Budget 2025, the jewellery industry is pinning its hopes on several potential interventions. Tax relief measures, such as increased exemptions or deductions for jewellery purchases, are being touted as a way to directly stimulate spending. A reduction in the GST rate on jewellery is also high on the wishlist, aiming to make these coveted items more attainable. Revitalizing the Gold Monetisation Scheme is another suggestion, with the aim of unlocking idle household gold and reducing import dependence. Furthermore, manufacturers are seeking broader financial support, including lower GST rates, tax rebates, easier access to finance, and incentives for exports. The industry hopes that these measures will collectively enhance affordability, encourage investment, and ultimately restore the sparkle to the jewellery sector.
