The Indian government has announced a reduction in the basic customs duty on imported jewellery and precious metal parts in the Budget 2025, aiming to make luxury jewellery more affordable and stimulate domestic demand.
According to the Budget document for the 2025-26 fiscal year, the basic customs duty on jewellery articles, parts, and items crafted by goldsmiths and silversmiths—classified under HS codes 7113 and 7114—will be lowered from 25% to 20%.
Additionally, the government cut the import duty on platinum findings from 25% to 5%, while introducing an Agriculture Infrastructure and Development Cess (AIDC) of 1.4% on these imports. A new HS code for platinum and gold alloys has also been introduced to improve trade transparency and prevent malpractices.
Industry experts welcomed the move, noting that India, one of the world’s largest gold consumers alongside China, will likely see increased demand for high-end jewellery.
“This reduction in customs duty will significantly boost demand in the domestic market, especially in the luxury jewellery segment,” said Colin Shah, Managing Director of Kama Jewelry. He also highlighted that the new HS code for platinum and gold alloys will ensure fair trade practices and prevent misuse of import classifications.
The decision aligns with India’s efforts to support its thriving jewellery industry while ensuring fair trade and better regulation of precious metal imports.
