Union Budget 2025: Jewellers wishlist includes reductions in import duties, mandatory hallmarking

Ahead of Union Finance Minister Nirmala Sitharaman's Budget 2025 presentation on February 1, the jewellery industry is hoping for measures that will further boost transparency and formalisation in the sector.

TS Kalyanaraman, Managing Director of Kalyan Jewellers, highlighted the reduction in customs duty on gold from last year’s budget as a major step in shifting the industry from the unorganised to the organised sector. He explained that the move helped enhance transparency and bring more structure to the jewellery industry.

The organised sector is officially registered with the government and operates under formal regulations, which ensures greater accountability and compliance. By shifting to this organised framework, the industry has been able to combat issues like counterfeit products and unregulated trading, ensuring that consumers receive genuine, high-quality products.

"In the last Budget, a reduction in customs duty on gold was announced, which was a trigger for accelerating the shift from the unorganised to the organised sector. This change allowed for greater transparency and formalisation of the jewellery industry. If the upcoming Budget includes further reductions in import duties, along with continued mandatory hallmarking, it will make the industry more transparent and regulated and aid in the growth of this sector,” said Kalyanaraman.

The gold sector plays a major role in India’s economy, and industry figures believe that further reforms will create a more regulated and organised environment. 

A report by Emkay Global Financial Services also suggests that changes in customs duties and foreign direct investment (FDI) norms may be in store. The report speculates, “Watch for higher customs duty on gold and easier FDI norms. Some tweaks in the personal Income Tax slabs could be done to focus on increasing disposable income for the middle-income strata.”