The Gem & Jewellery Export Promotion Council (GJEPC) has submitted its pre-Budget recommendations to Union Finance Minister Nirmala Sitharaman, outlining policy measures aimed at strengthening India’s gem and jewellery sector amid global trade challenges.

India’s gem and jewellery exports were valued at $ 28.7 billion in FY 2024–25. GJEPC highlighted pressures arising from geopolitical uncertainty, the impact of U.S. tariff actions, and slowing consumer demand in key international markets.

To improve export competitiveness, the Council has proposed liberalised taxation for rough diamond trading in Special Notified Zones. It recommended a predictable tax regime for foreign mining companies, a review of the existing 4% Safe Harbour tax, and permission for reputed global brokers to operate in India to enhance liquidity and transparency.

GJEPC has also sought duty rationalisation on cut and polished diamonds and coloured gemstones. It proposed reducing the import duty from 5% to 2.5% and removing duties on rough gemstones to support domestic manufacturing, employment and exports.

On jewellery exports, the Council recommended replacing the fixed-rate duty drawback with an ad-valorem mechanism to address volatility in gold prices. It also called for the inclusion of platinum jewellery and gold articles under the Duty Drawback Scheme.

Kirit Bhansali of GJEPC said, “With high U.S. tariffs, evolving consumer preferences and shifting global supply chains, it is imperative that India maintains its competitive edge. Our pre-Budget proposals focus on making exports more cost-efficient, strengthening SEZ operations and improving policy frameworks that encourage investment and skill development. A key objective is to establish India as a global diamond trading hub, complementing its position as the world’s leading cutting and polishing centre.”