Ahead of Union Budget 2026, India’s gold industry is pushing for a simplified customs duty structure with fewer slabs, along with selective tax rationalisation, to unlock the sector’s full potential and position India as a global gold trading and refining hub.
What the industry wants
- Reduction in the number of customs duty slabs on gold to make pricing transparent and predictable
- A simplified tariff structure to ease compliance and reduce arbitrage opportunities
- Measures to curb smuggling, which tends to rise when duties are high or complex
- Policy support to strengthen domestic refining, bullion exchanges, and gold financing
Why it matters
India is one of the world’s largest consumers of gold, but high and complex import duties have often distorted the market. Industry participants argue that a cleaner tariff regime would:
- Improve formalisation of the gold trade
- Boost volumes on platforms like the India International Bullion Exchange (IIBX)
- Enhance export competitiveness of gold jewellery
- Encourage global players to use India as a trading and price-discovery centre
Current concerns
Frequent changes and multiple duty components have increased compliance costs for jewellers and importers. A simplified structure, even without a sharp duty cut, could bring stability and help long-term planning.
What to watch in Budget 2026
Experts expect the government to balance revenue considerations with the need to reduce illegal imports and support the jewellery ecosystem. Any move toward fewer slabs or clearer taxation could be a positive signal for gold companies, jewellers, and bullion market participants.
Overall, Budget 2026 is seen as an opportunity to modernise India’s gold policy framework and align it with the goal of becoming a globally competitive precious metals hub.
