Diamond jewellery to get friendlier with duty cuts

Diamond-studded jewellery is set to become more affordable with the Union Budget proposing to reduce import duty on cut and polished diamonds and completely withdraw duty on sawn diamond.

Prices of other gemstone-studded jewellery, too, are expected to come down due to a proposed duty cut on polished natural gemstones.

Finance minister Nirmala Sitharaman has proposed import duty on cut and polished diamonds and polished natural gemstones to 5% from 7.5%. Sawn diamond currently attracts 7.5% duty.


However, prices of imitation jewellery will rise as the government has put a customs duty of ₹400 per kg on imported imitation jewellery in a bid to check soaring imports from China.

Jewellers said the duty cut on diamonds will have a favourable impact on the organised jewellery retail at a time when diamond jewellery is gaining in popularity among millennials.

"The customs duty on cut and polished diamonds will boost diamond jewellery sales since prices will come down," said Ahammed MP, chairman of Malabar Gold & Diamonds.