India’s Finance Minister has stated that the simplification of customs procedures will be the next major reform for the Indian economy. The move aims to reduce procedural complexity, improve efficiency, and strengthen India’s competitiveness in global trade.

For the gems and jewelry industry, which depends heavily on imports of rough diamonds and exports of finished products, streamlined customs processes could have a direct impact on costs, timelines, and working capital.

Source: “Simplification of customs will be next big reform,” says Finance Minister — The Hindu (19 February 2025)

Key Highlights from the Announcement

The Finance Minister emphasized that the government will focus on:

• Reducing red tape in customs clearances

• Expanding technology-driven and faceless assessment systems

• Improving coordination across departments

• Minimizing delays through risk-based inspections

These measures are expected to build upon existing digital initiatives such as e-Sanchit and faceless customs assessment.

Industry Perspective

The Gem and Jewellery Export Promotion Council (GJEPC) welcomed the announcement, noting that simplified and transparent customs procedures are essential for maintaining India’s leadership in global gem and jewelry exports.

Industry bodies have consistently highlighted that faster clearances, reduced physical inspections for compliant exporters, and single-window digital systems can significantly improve logistics efficiency and cost management for high-value shipments.

Impact on the Gems and Jewelry Trade

Simplified customs procedures could lead to:

• Faster import of rough diamonds and precious metals

• Reduced port dwell time and logistics costs

• Improved working capital cycles

• More predictable export delivery timelines

For domestic manufacturers and retailers, improved logistics can also support better production planning, especially during peak festive and wedding seasons.

JK Diamonds Institute – Industry Insight

Customs reform is not merely a regulatory update but a strategic opportunity for the gems and jewelry industry. Businesses that align early with digital compliance systems and develop a strong understanding of trade processes will be better positioned to benefit from these changes. Having said that, the on ground execution of these reforms is key. The bureacracy has to step up and realise that the industry and commerce plays a very important role and should give way and adapt to such new reforms rather than play spoilsport. It will be seen in the coming days whether there is any positive movements in custom clearance efficiency. 

Operational efficiency, combined with sound product and market knowledge, will increasingly become a competitive advantage in global trade.

Conclusion

The proposed simplification of customs procedures signals a positive shift toward a more trade-friendly ecosystem. For the gems and jewelry industry, it offers an opportunity to improve efficiency, reduce costs, and enhance India’s position in international markets.