Leading Indian jewellery retailers, manufacturers and industry bodies have outlined a cohesive set of requests ahead of the Union Budget 2026–27, asking for changes to GST, import duties, export incentives, digital‑gold regulation and working‑capital measures. The industry frames these as measures to ease working‑capital strain, restore export competitiveness and protect margins across the supply chain — outcomes that will influence inventory, pricing and sourcing decisions domestically and for international buyers.

  • Event: Union Budget 2026–27 (India).
  • Stakeholders: leading retailers, manufacturers and industry associations.
  • Policy areas: GST, import duties, export incentives, digital‑gold regulation, working capital.
  • Market focus: domestic manufacturing, exports and trade links with global buyers.

How this maps to 2025–26 sector trends

The requests align with several ongoing industry dynamics. Trade bodies frame GST and duty adjustments as essential to relieve the working‑capital pressure created by high inventory values and trading cycles; clarity on digital‑gold platforms is presented as necessary to bring regulated custody and settlement to a product that has grown outside traditional retail channels. For manufacturers and exporters, changes to duty and incentive structures are pitched as ways to sharpen India’s competitiveness against other manufacturing hubs.

Stylistically, the market has shifted toward restrained, material‑forward product lines — pieces defined by satin‑finished gold surfaces, discreet micro‑pavé and clean links with substantial heft rather than overt branding. Policy that reduces friction for makers supports that direction by lowering the effective cost of producing fine‑metalwork and precision settings, while regulation of digital gold could redirect some demand back into physical retail and bespoke manufacture.

Why US buyers, retailers and investors should care

Budget outcomes in New Delhi have direct commercial consequences for international supply chains. Import‑duty changes and export incentives alter landed costs and lead times for US retailers and wholesalers sourcing from India: reduced duties or stronger export support would improve price competitiveness for Indian‑made jewellery and components; higher duties or tighter working‑capital conditions would push some suppliers to revise lead times and margins.

For US investors and buyer teams, the policy signals matter beyond immediate pricing. Clear rules for digital gold platforms affect cross‑border fintech partnerships and the reliability of electronic‑to‑physical conversion channels used by global customers. Measures that ease working capital or streamline GST compliance reduce operational risk for contract manufacturers and exporters, improving credit profiles and the resilience of supplier networks.

Practical steps for trading partners include tightening shipping and payment terms, reassessing buffer stock strategies, and prioritising suppliers with transparent tax and compliance processes. That approach preserves margin integrity while the policy landscape is clarified.

As the Budget is announced, retailers and investors should watch for the exact language on GST rates, duty concessions and digital‑gold rules — those details will determine whether the measures act as a growth levers for manufacturers or a source of renewed margin pressure for the trade.

Image Referance: https://www.indianjeweller.in/Indian-Jewellery-News/15935/jewellery-industry-flags-tax-duty-and-regulatory-priorities-ahead-of-budget-2026