India Seeks Boost in Global Gem and Jewellery Market with Tax Overhaul

India's gem and jewellery sector urges the government for tax reforms, aiming to enhance global competitiveness. Key proposals include GST reduction, customs process updates, and duty rationalization. Stakeholders believe these changes will position India as a leading diamond trading hub amid evolving trade dynamics.

India's gem and jewellery sector is advocating for tax reforms to strengthen its position in the global market. Key proposals were submitted to the Finance Minister as part of pre-budget recommendations for 2026-27, which focus on enhancing the country's competitiveness in a challenging trade environment.

The Gem and Jewellery Export Promotion Council (GJEPC) proposed reducing GST and rationalizing import duties to help make Indian exports more cost-efficient. GJEPC chairman Kirit Bhansali highlighted the importance of these measures to maintain India's competitive edge amid high US tariffs and changing global supply chains.

Furthermore, proposals call for amendments in the Customs Act and the introduction of AI-enabled appraisals to improve efficiency. Meanwhile, the All India Gem and Jewellery Domestic Council urged GST adjustments and other reforms, emphasizing the price disadvantage faced by foreign tourists buying jewellery in India compared to other regions like the UAE and Singapore.

(With inputs from agencies.)