New Delhi, Oct 2026 : The central government on Friday reduced duty drawback rates for exports of gold and silver jewellery and other precious metal products, a move that could increase cost pressures on Indian exporters and affect their profit margins.
According to a notification issued by the Ministry of Finance, the duty drawback rate for gold jewellery has been reduced by around 3.1 per cent, while the rate for silver jewellery and other silver products has been cut by approximately 9 per cent.
Following the revision, the duty drawback rate for gold jewellery exports has declined from ₹1,851.99 per gram to ₹1,794.11 per gram. For silver jewellery and other silver products, the rate has been reduced from ₹29,501.09 per kilogram to ₹26,859.02 per kilogram.
The reduction lowers the refund available to exporters on eligible duties paid on inputs used to manufacture goods for overseas markets. The extent of its impact will depend on production costs, export prices, global demand and individual exporters’ margins.
Duty drawback is a government mechanism through which exporters receive refunds of eligible customs duties and other levies paid on materials used to manufacture products for export. The scheme aims to prevent domestic taxes and duties from making Indian goods less competitive in international markets.
The latest revision follows a significant increase in duty drawback rates announced in July this year, when the government provided relief to the jewellery export sector amid rising costs and global uncertainties.
At the time, the drawback rate for gold jewellery was increased from ₹773.17 per gram to ₹1,851.99 per gram. The rate for silver products was raised from ₹14,990.66 per kilogram to ₹29,501.09 per kilogram.
The latest cuts partially reverse the relief provided in July, reducing the refund available to exporters compared with the rates applicable before the new notification.
The jewellery export industry operates in a market influenced by fluctuations in precious metal prices, changing consumer demand and competition from other manufacturing hubs. Any reduction in export-related refunds can affect cost calculations, particularly for businesses operating on narrow margins.
However, the impact on overall exports may depend on conditions in key international markets. Industry experts believe that strong global demand could help limit the effect of the lower drawback rates.
Exporters will be watching how the revised rates influence order volumes, pricing decisions and competitiveness in the coming months. The changes also renew attention on the role of export incentives in supporting India’s jewellery manufacturing sector and its position in international trade.
