Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in the Lok Sabha yesterday. In a major benefit to gold buyers, the Finance Minister had proposed a reduction of 5% on customs tariff reduction on jewellery, effectively reducing the purchase rates of gold and platinum.
The changes proposed towards the items covered under Harmonized System of Nomenclature ( HSN ) Code 7113 have been reduced from 25% to 20%. The changes are effective from today February 2, 2025, and are expected to be taken advantage of by many.
Gold prices had been on a heavy rise prior to the budget, with the prices peaking on the day of the budget.
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Despite reductions in jewellery tariffs, customs duties on gold and silver have been left unchanged, ensuring that there is no additional burden on consumers purchasing these metals.
For the sake of ensuring clarity, the Union Budget 2025-26 has also proposed new tariff lines for distinguishing gold (99.5% purity or more), silver (99.9% purity or more), and platinum (99% purity or more). The changes in the trade and taxation policies regarding high-value metals shall provide more structure and steamline to the jewellery market.
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The move, aimed at boosting the domestic jewellery market, shall increase the affordability for consumers, all the while supporting the nation’s thriving gems and jewellery sector which contributes 7% to the overall GDP of the country.
Often overlooked, the platinum market has been on a steady rise and is poised to receive a significant boost from the reduced tariffs. Platinum jewellery has not been the first choice for many buyers, but the changes in the tariff rates and their effective rates shall definitely push for a change in taste in jewellery enthusiasts, buyers and investors.
With the reduced customs tariff, experts anticipate increased jewellery sales, both domestically and in exports, further strengthening India’s position as a shimmering global jewellery hub.
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