Will the Union Budget 2026 make gold and silver available to the Indian buyers cheaper, or would the market volatility remain at the helm of precious metals trends? 

 

Author : Akshita Jain | EQmint | Budget 2026

The focus has been very keen on the gold rates in India and silver prices as the countdown to the Union Budget 2026 mounts. The cut in the customs duty charged on gold and silver is an issue that the investors, jewellers, and consumers are keenly following, whether Finance 

 

Minister Nirmala Sitharaman will announce it or not, and this could have a huge influence on the domestic jewellery market and the investment patterns. 

 

As precious metals have recorded tremendous price movements in recent weeks, the budget announcement is due to be announced on February 1 and is likely to have a decisive impact on the market sentiment.

 

Precious Metals Witness Unstable Price Changes

Recent market reports indicate that there were dramatic changes in gold prices and silver rates in India. 24-carat gold is said to have gone down drastically on January 30, 2026, losing its value per 10 grams. In the same vein, both the 22-carat and 18-carat gold registered a keen price cut as well. In spite of these extreme declines, gold still achieved good returns of over 25 percent in January, which has underscored the good results of the metal in the month.

 

This was also the case of silver. The prices dropped drastically, and the per-kilogram rates experienced considerable drops. But in some cities, such as Chennai and Hyderabad, Silver prices still stood at a high of over [?]4 lakh per kilogram. 

 

Remarkably, the recent corrections notwithstanding, silver has been paying a significant payback of almost 66 percen,t suggesting that there is a great interest among the investors and a long-term momentum of the bull.

 

Analysts attribute this abrupt adjustment to profit booking following a likely overbought surge and the appreciation of the US dollar that has a tendency to pressure precious metal prices.

 

Why Budget 2026 Is Crucial for Gold and Silver Markets

The expectations of the Union Budget 2026 have emerged as a big debate in the jewellery and bullion industries. The leaders in the industry are pushing the government to come up with reforms that will make imports cheaper, ease trade processes, and enhance local production.

 

The rationalisation of the import duty on gold, silver, platinum, and gemstones is considered by industry experts to be one of the most important demands. The reduction in manufacturing costs, competition in pricing, and the ability to compete better in the world jewellery export markets could be achieved through lower duties. Digital documentation and simplified customs procedures are also being proposed to facilitate the process of logistics and minimize the delays of exporters.

 

These reforms would not only favor exporters but also domestic consumers, as jewellery would be cheaper.

 

Lessons on Past Budget Decisions

The jewellery industry is optimistic due to the changes in policies in the past. In Budget FY25, the government dropped the customs duty on imports of gold by a large margin, decreasing it by 15 per cent to 6 per cent. Like cuts were to be implemented on silver bars and imports of platinum. These steps increased the consumer demand and reinforced the jewellery sales, though they had a short-term effect on the market pricing.

 

The industry insiders are now guessing whether it will introduce an equivalent move in Budget 2026. When the government declares an additional reduction of duties, it may provide a boost to its consumption, employment in the jewellery production industry, and lead to the competitiveness of its exports.

 

Undergoing negotiation, GST Reform, and Tourism Benefits

Other than the alteration in customs duty, the industry also demands the GST reforms on jewellery. Professionals are suggesting the rate of GST be reduced to around 1-1.25 per cent of the present rate, which is 3 per cent. This would potentially lower the cost of consumers, promote organised buying of jewellery, and broaden the tax base.

 

Besides, the need to introduce the Tourist GST Refund Scheme in key airports in India is also increasing. This project might bring in new international luxury shoppers and a guarantee of better domestic retail spending, which would further cement the role of India as a global jewellery centre.

 

Global Economic Factors Driving Precious Metal Demand

The future of gold investment and silver investment is a good one in spite of the recent changes in the economy. The unpredictability of a world full of trade, global politics, and the fear of economic expansion has historically attracted the demand for safe-haven currencies such as gold and silver. Market analysts opine that these aspects may further offer long term bullish trend in precious metals.

 

Commodity observers have also pointed out that the prices of gold will be erratic just in the short run, but will stabilize within a set trading margin once the market equilibrium is restored.

 

What is next to watch by Investors and Buyers?

As Budget 2026 is barely a month away, several important questions are hanging in the air:

• Will the government further decrease the customs duty on gold and silver?

• Will GST changes in the jewellery sector stimulate domestic jewelry consumption?

• Will the price of precious metals be cheaper to the Indian clients?

• What is the effect of global economic uncertainty on the demand for investments?

These questions will probably answer whether the bullion market will go in the right direction in the next few months or not.

 

Final Outlook

The precious metals market is at a crossroads as India looks forward to the  Union Budget 2026. Any move to change import duty or taxation may transform the price dynamics, demand, and exports. Both the jewellery buyers and investors are very keen on the announcement of government policy, which hopefully can bring favourable moves that can stabilise the prices and fuel growth.

 

Whether Budget 2026 will bring relief to the consumers or another spiral of market fluctuation will happen will be known. Nevertheless, there is one undeniable thing, and that is that the gold and silver will continue to be at the centre of the Indian financial and cultural investment arena.

 

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