Budget 2025: Reduce Custom Duty Bring Shine To Gem And Jewellery Trade

In a significant move, the Finance Minister has announced a reduction in customs tariffs for jewellery and platinum findings, effective from February 2, 2025. This change, part of the annual Budget 2025, aims to stimulate consumption and strengthen the domestic gems and jewellery market.

Key Changes in Customs Tariff

• Jewellery and Parts (HSN Code 7113): The customs tariff on jewellery and its parts has been slashed from 25% to 20%. This reduction is expected to make jewellery more affordable and accessible for Indian consumers, driving demand in the luxury segment.
• Platinum Findings: The tariff on platinum findings has been drastically reduced from 25% to just 5%. This move is anticipated to have a positive impact on the entire gems and jewellery sector, encouraging the use of platinum in high-end designs.

What This Means for the Jewellery Industry

India is known for its high jewellery consumption, and the tariff cuts come as a welcomed relief to both consumers and industry players. Colin Shah, Managing Director of Kama Jewelry, expressed his enthusiasm about the decision, highlighting that the reduction in jewellery duties will boost demand in the domestic market, especially for luxury items.

The significant reduction in platinum finding duties is also seen as a game-changer. Platinum, a sought-after precious metal for premium jewellery, is now more accessible for manufacturers, which could lead to a rise in platinum jewellery production and consumption.

Impact on Consumers and Manufacturers

This customs tariff reduction will not only help make jewellery more affordable for Indian buyers but will also incentivize manufacturers to produce more innovative and luxury-focused jewellery, potentially expanding the range of options available to customers. The lower tariff on platinum findings could also result in the introduction of more platinum-based jewellery designs, enhancing the variety in the market.

 A Positive Outlook for India’s Jewellery Market

The reduction in customs tariffs for jewellery and platinum findings marks a progressive step towards boosting India’s vibrant jewellery market. With a lower tax burden on these precious commodities, both consumers and industry professionals can look forward to increased demand, more competitive pricing, and a stronger focus on luxury and innovation in jewellery design.

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