Sarthak Ahuja Shares Why Buying Gold in India is Now Cheaper Than in Dubai

Gold, often considered a symbol of wealth and a safe investment, has always been a popular purchase in India and Dubai. However, a significant shift in import duties and taxes has made India a more economical destination for buying gold. Business consultant and digital creator Sarthak Ahuja sheds light on this surprising development and explains why buying gold in India is now a smarter choice than purchasing it in Dubai.

1. Reduced Import Duty: A Game Changer for Gold Buyers

In July 2023, the Indian government reduced the custom duty on gold imports from 15% to 6%, marking a significant 9% decrease. Since India imports nearly all of its gold, this change has drastically lowered the cost of gold in the country.

Why It Matters:

The reduction in import duty directly impacts gold prices, making it more affordable for consumers, especially during peak buying seasons like weddings and festivals.

2. Tax Comparison: India vs. UAE

Taxation plays a crucial role in determining the final cost of gold. In India:

GST on gold is set at 3%, offering a significant advantage over the 5% VAT on gold sales in Dubai.
Additionally, making charges for jewelry in the UAE are nearly double compared to those in India, further increasing the cost disparity.

3. Changing Trends in Gold Purchases by NRIs

The affordability of gold in India is reflected in purchasing patterns:

• In November and December 2023, gold purchases by Non-Resident Indians (NRIs) in India increased by 10-15%.
• This surge isn't solely due to the 23% rise in gold's value over the past year but also because buying gold in Dubai during layovers is no longer as economical as it once was.

Why Gold is Cheaper in India

Here's a quick breakdown:

• Lower import duties: 6% in India compared to previous 15%.
• Lower taxes: 3% GST in India vs. 5% VAT in Dubai.
• Affordable making charges: Jewelry making costs in India are significantly lower than in the UAE.

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The reduced import duties and favorable tax structure have positioned India as a more economical choice for gold buyers. Whether you're a local buyer or an NRI, the financial benefits of purchasing gold in India outweigh the allure of shopping for it in Dubai.