Gold has long been a preferred investment in both Dubai and India, but significant price differences exist due to variations in taxation, import duties, and market competitiveness.
Is Gold Cheaper in Dubai?
Yes, gold is cheaper in Dubai than in India. The city serves as a major hub for gold trading, with several factors contributing to lower prices:
- Tax-Free Purchases: Dubai does not impose taxes on gold purchases, making gold more affordable.
- No Import Duties: Unlike India, Dubai does not levy import duties on gold, reducing costs for buyers.
- Competitive Pricing: Dubai’s gold market is highly competitive, with multiple dealers offering attractive rates.
Gold Price Comparison (As of September 25, 2024)
- Dubai (24K Gold): AED 313.66 per gram (~₹7,138.96 per gram)
- India (24K Gold): ₹8,225 per gram
This price gap is largely due to India’s import duties and taxes, which increase the overall cost of gold for Indian consumers.
India’s Gold Import Duties and Restrictions
To regulate gold imports, the Indian government has imposed various duties and restrictions.
Import Duty Changes in 2024
In July 2024, the Indian government reduced customs duty on gold imports from 15% to 6%, as per Reuters. This move aimed to:
- Reduce gold smuggling
- Boost legal imports
- Make gold more affordable for Indian buyers
Despite this reduction, travelers bringing gold into India must follow specific regulations.
Duty-Free Allowance for Travelers
Passengers arriving in India can bring gold without paying customs duty, within the following limits:
- Male Passengers: 20 grams of gold (worth up to ₹50,000)
- Female Passengers: 40 grams of gold (worth up to ₹100,000)
Customs Duty on Excess Gold
Gold brought beyond the duty-free limit is subject to customs duties, varying based on quantity.
Impact of Import Duty Reduction
- Gold imports surged in August 2024, reaching $10.06 billion, driven by strong demand before festive seasons.
- This increased India’s trade deficit to a 10-month high of $29.65 billion, according to Reuters.
