Gold Prices: Dubai vs India – Understanding Import Duties and Restrictions

Why Gold is Cheaper in Dubai Than in India

March 10, 2025: The recent arrest of Kannada actress Ranya Rao at Bengaluru Airport for allegedly smuggling 14.2 kg of gold has reignited discussions about the price difference between gold in Dubai and India. The price gap, driven by taxation policies and import duties, often leads to smuggling attempts despite strict customs regulations.

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Gold Prices: Dubai vs India

✔️ Gold in Dubai is significantly cheaper than in India due to the following reasons:

🔹 No Import Duty in Dubai – Unlike India, Dubai does not levy import duties on gold, making purchases tax-free.
🔹 Tax-Free Shopping – Dubai’s zero-tax policy on gold ensures consumers buy at market rates without added costs.
🔹 Highly Competitive Market – The Dubai Gold Souk and multiple traders ensure better pricing and minimal markups.

📊 Gold Price Comparison (September 2024):

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• Dubai (24K Gold): AED 313.66 per gram (~₹7,139 per gram)
• India (24K Gold): ₹8,225 per gram

India’s Gold Import Duty & Restrictions

To regulate gold imports and control the trade deficit, India has strict import duties and limitations:

✔️ Import Duty Changes (July 2024):

• Customs duty reduced from 15% to ~6% to curb smuggling and encourage legal imports.

✔️ Duty-Free Allowance:

• Men: Up to 20 grams of gold worth ₹50,000 (duty-free).
• Women: Up to 40 grams worth ₹100,000 (duty-free).

✔️ Customs Duty on Excess Gold:

• Any gold above the duty-free limit attracts customs duty + GST, making it costlier to legally import.

Impact of Gold Imports on India’s Economy

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📈 Record Gold Imports (August 2024):

• India’s gold imports surged to $10.06 billion, driven by festive demand and lower duties.
• Trade Deficit Widened to $29.65 billion, raising concerns over rising gold imports impacting forex reserves.

💡 Takeaway:
While gold is cheaper in Dubai, importing large quantities legally into India can be costly due to duty regulations. The price gap fuels smuggling, leading to strict customs enforcement.

Tags: Gold Prices, Dubai Gold Market, Gold Smuggling, Gold Import Duty, India Economy, Gold Trading, Customs Regulations