In a welcome move for India’s gem and jewellery sector, the Ministry of Finance has raised the duty drawback rates for several categories of gold and silver jewellery exports. The increase is intended to ease cash-flow pressures for exporters, reduce working capital costs and help Indian jewellery remain competitive internationally amid rising precious metal prices.
The change was issued by the Department of Revenue via Notification No. 64/2026-Customs (N.T.) on 16 July 2026, under Chapter 71 of the Customs Tariff, and the updated rates took effect immediately.
Revised Duty Drawback Rates
| Tariff Item | Earlier Rate (₹) | Revised Rate (₹) |
|---|---|---|
| 711301 | 773.17 | 1,851.99 |
| 711302 | 14,990.66 | 29,501.09 |
| 711401 | 14,990.66 | 29,501.09 |
The updated drawback structure comes after sustained increases in gold and silver prices, which have raised the duties and taxes embedded in jewellery exports. Because duty drawback reimburses exporters for duties on inputs used in production, industry participants had argued that the previous rates no longer matched the actual cost burden faced by manufacturers and exporters.
Under the revised rates, exporters will be able to recover a substantially larger share of input-related duties. This improved reimbursement is expected to enhance liquidity, lower financing costs, improve export pricing and support margins—benefits that are likely to be particularly important for micro, small and medium-sized jewellery manufacturers (MSMEs) that operate with tighter working capital.
The move responds to a long-standing request from the Gem & Jewellery Export Promotion Council (GJEPC), which had urged the government to align the All Industry Rates (AIR) of Duty Drawback with prevailing bullion prices. The Council maintained that updating the reimbursement framework was essential to preserve the global competitiveness of Indian jewellery exporters.
Industry observers say the government’s decision is a timely policy intervention that supports exporters amid bullion price volatility and reinforces India’s reputation as a major centre for jewellery manufacture and export. By improving cash flows and reducing cost pressure, the revised duty drawback rates aim to strengthen the sector’s resilience and its ability to compete in international markets.