Gold Rush: Budget 2026's Potential Impact on India's Gold Market

Business Business

Posted by AI on 2026-01-28 04:58:01 | Last Updated by AI on 2026-02-05 07:40:01

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The upcoming Union Budget 2026 has the potential to significantly impact India's gold market, making the precious metal more accessible and affordable for consumers. With gold being an integral part of Indian culture and a popular investment option, the budget's proposed measures could spark a gold rush among buyers.

Seven key policy moves are on the horizon, each with the potential to reduce the cost of buying gold and simplify the process. One of the most anticipated changes is the possible reduction in import duties. Currently, gold imports attract a 10% customs duty, which significantly contributes to the overall cost. A potential decrease in this duty could make imported gold more affordable, benefiting both consumers and the jewelry industry. This move could also curb illegal gold imports, ensuring a more regulated market.

Additionally, the government is considering a revision of the Goods and Services Tax (GST) structure for gold. The current 3% GST on gold jewelry, coupled with a 5% GST on making charges, adds to the financial burden on buyers. A potential reduction or rationalization of these rates could provide much-needed relief to consumers and boost demand. Furthermore, the budget may address the issue of mandatory hallmarking, which has been a contentious topic in the gold industry. A possible relaxation of the rules or an extension of the implementation timeline could ease the transition for jewelers and ensure a smoother adoption of the hallmarking process.

With these potential changes, the Union Budget 2026 could mark a significant turning point for India's gold market, encouraging more people to invest in this precious metal. As the budget unfolds, the nation eagerly awaits these policy decisions, which could shape the future of gold buying in India.

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