Union Budget 2026-27: Will Gold Prices Come Down?
As the Union Budget for FY 2026–27 is set to be presented in Parliament on February 1, rising gold prices have become a major concern for consumers and the jewellery industry. Economists believe that certain policy measures in the Budget could help bring down gold prices and boost the sector.
The jewellery industry is urging the central government to reduce import duties on gold, silver, platinum, and gemstones. Since India depends heavily on imports, high duties increase production costs and make Indian jewellery less competitive in global markets. A reduction in import duty could lower manufacturing costs, improve exports, and create employment opportunities.
Another key demand is faster and simpler customs procedures. Exporters often face delays due to lengthy approvals, so digital documentation and quicker clearance could improve efficiency.
The industry is also seeking a reduction in GST on gold jewellery from the current 3% to around 1–1.25%. Jewellers say this would reduce costs, encourage transparent transactions, and revive demand, especially as many consumers have postponed purchases due to high prices.
Additionally, proposals include introducing installment payment schemes and integrating financial services at jewellery shops to make gold purchases more affordable, particularly for low-income buyers. The industry also calls for better infrastructure and training to position India as a global jewellery manufacturing hub.
While expectations are high, it remains to be seen whether these measures will be included in the Union Budget on February 1.
