The central government has revised the duty drawback rates on gold, silver, and platinum jewellery in order to cushion exporters against the impact of steep tariffs being imposed by the United States of America from August 27.As per a Department of Revenue notification, the duty drawback on silver jewellery has been increased from ₹335.50 to ₹466.76 per 10 grams, while the rate for gold and platinum jewellery has been raised from ₹4,468.10 to ₹5,234 per 10 grams.
The revision has come on the back of exporters facing a 50% tariff on shipments to the U.S.A, which is India’s second-largest market for gems and jewellery. The sector exported $9.94 billion worth of goods to the U.S. in FY25, nearly one-third of India’s total gems and jewellery exports of $29.8 billion.
“While this is a welcome step, further support will be needed in the coming months to sustain export momentum,” Vipul Shah, former chairman of the Gem and Jewellery Export Promotion Council, was quoted as saying by Mint.Industry representatives have welcomed the move, saying it provides some relief, but stressed that sustained support will be necessary to maintain competitiveness against rivals like Turkey and Thailand, which enjoy lower tariff barriers.
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