On 1 February 2025 (Saturday), Finance Minister Nirmala Sitharaman introduced the Union Budget 2025, with several major announcements for the middle class and jewelery industry. The most important announcement was about the new tax system, which will directly benefit the salaried class.
Major relief in tax for middle class
Under the new tax system, there will now be no tax on annual income up to Rs 12 lakh. Apart from this, people with income up to Rs 12.75 lakh will also get this benefit due to standard deduction. This decision has brought great relief for the taxpayers.
The biggest thing was that this provision came into force from the very next day, ie 2 February 2025.
Customs cut on jewelery
Finance Minister Nirmala Sitharaman, referring to the item code-7113, announced a customs cut to provide relief to the jewelery industry.
- Customs on jewelery and their parts were reduced from 20% to 15%.
- Customs on platinum metal were reduced from 25% to 5%.
This change was also implemented immediately from 2 February 2025.
What will be affected on jewelery industry?
The demand for jewelery in India has always been higher. This demand may increase further after the government cuts the fee.
What will be the benefit of this?
The prices of jewelery will be lower, making customers more purchases.
The luxury segment will get a big benefit.
Indian jewelery industry competition will increase in the domestic and international markets.
The industry has appreciated this decision of the government, as it will directly benefit jewelery manufacturers and traders.
No change in fees on gold and silver
There was no change in the customs duty on gold and silver in the budget 2025. However, the decision to reduce the fee on platinum metal will strengthen the gemstone and jewelery industry.
Experts believe that the move will increase competition in India’s jewelery market, which will emphasize new and attractive designs.
What will happen next?
This decision of the government will directly benefit the middle class, jewelery industry and investors. The budget 2025 not only brought relief to taxpayers, but the Indian gemstone and jewelery industry will also get strengthened in the international market.
Now it will be interesting to see how much these decisions have an impact on the economy and the general public.
