Commentary on Union Budget 2026-27 gives a subtle yet impactful boost Indian gems & jewellery sector by Mr. Colin Shah, MD, Kama Jewelry
Below the Commentary on Union Budget 2026-27 gives a subtle yet impactful boost Indian gems & jewellery sector by Mr. Colin Shah, MD, Kama Jewelry
SEZ reforms - Primarily, the introduction of a special one-time facility for SEZ units to supply to the DTA at a concessional rate of duty is a welcome move, and will help in enhancing capacity utilization and realizing the Indian government’s vision of making the country a diamond trading and manufacturing destination in the world. The support for SEZ units selling into the domestic market, along with continued backing for diamonds and lab-grown diamonds, gives a real boost to manufacturing and trade. This along with a faster customs clearance and a single digital window, doing business is all set to become easier.
Stability in import duties – Keeping the import duties unchanged for gold and silver will give the sector a much-needed stability, thus driving sustainable growth.
Ecommerce – the new growth engine - The removal of INR 10 lakh cap on courier exports is a major move that empower India’s small businesses, artisans, start-ups and jewellery exporters to gain advanced access of global markets through e-commerce value chain. This will bolster shipments of high value gems & jewellery products through the global courier route. Additionally, the improvisation of procedures for handling rejected and returned consignments through tech-led mechanism will further aid easing of operational hurdles for exporters.
MSME boost - The focus on improving liquidity for MSMEs with measures like linking TReDS with GeM, mandating it for CPSE purchases, and introducing credit guarantees will make financing faster and cheaper. For MSMEs in the gems and jewellery sector, this will help ensure timely payments and smoother cash flow, ultimately boosting manufacturing and trade.
The STT Impact - Contrary to all growth measures, the hike on Securities Transaction Tax on Futures to 0.05% will have a negative impact on the broking margins and ultimately reflect F&O trading volumes. With increased cost, the brokers will be under pressure and trading will become costlier, ultimately resulting in slowing down of trade activity.
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