Cut in gold import duty In Budget 2024: Recent cut in customs duty on gold imports union budget 2024 This is expected to have a significant impact on the gold buying habits of Indian consumers who frequently visit Dubai. Indian jewellers who have stores in both India and the UAE believe that the reduction in duty differential will lead to lower gold prices in India, making it less attractive for Indians to buy gold in Dubai.
The Emirates had attracted Indian gold enthusiasts after a massive hike in customs duty in India in July 2022. The duty on gold imports was more than halved in the budget for FY 2024-25.
Growth is also expected from fee cuts Gold Jewellery To promote gold production in India, especially the popular 'Kolkati' jewellery from Kolkata which is loved by Indian expatriates living in Dubai and tourists from various countries. This move will encourage gold artisans to create new designs in both heavy and light jewellery, thereby attracting consumers to buy gold from India.
According to an ET report, Joy Alukkas, chairman of Joy Alukkas Groupestimates that about 50% of their UAE business will shift to India as Indian tourists who earlier bought jewellery in Dubai will now prefer to buy in India. However, Indian expatriates living in Dubai and other customers may continue to buy from the UAE.
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Rajeev Popli, director, Popli & Sons, believes that the notion that gold is cheaper abroad than in India is merely a mindset. He points out that labour costs in India are significantly lower and with the introduction of mandatory hallmarking and HUID number, the purity of gold in India is no longer a concern.
Moreover, NRIs in Dubai do not get VAT refunds, and Indians travelling abroad get only 60% of the VAT refunded on gold purchases. Gold trade analyst Bhargav Baidya suggests that the 1% duty difference between gold jewellery in India and Dubai can be made up by Indian jewellers offering discounts to retain and attract customers.
Saurabh Gadgil, chairman of PNG Jewellers, says Indian import duty is now at par with the US, allowing Indian jewellers to offer competitive prices compared to other countries around the world. The reduced customs duty is expected to make buying gold in India more attractive and convenient for Indian consumers, potentially leading to a significant shift in their gold buying preferences.
The Emirates had attracted Indian gold enthusiasts after a massive hike in customs duty in India in July 2022. The duty on gold imports was more than halved in the budget for FY 2024-25.
Growth is also expected from fee cuts Gold Jewellery To promote gold production in India, especially the popular 'Kolkati' jewellery from Kolkata which is loved by Indian expatriates living in Dubai and tourists from various countries. This move will encourage gold artisans to create new designs in both heavy and light jewellery, thereby attracting consumers to buy gold from India.
According to an ET report, Joy Alukkas, chairman of Joy Alukkas Groupestimates that about 50% of their UAE business will shift to India as Indian tourists who earlier bought jewellery in Dubai will now prefer to buy in India. However, Indian expatriates living in Dubai and other customers may continue to buy from the UAE.
Read this also | Is gold losing its shine? The government reduced the target of issuing gold bonds as investors looked for better options
Rajeev Popli, director, Popli & Sons, believes that the notion that gold is cheaper abroad than in India is merely a mindset. He points out that labour costs in India are significantly lower and with the introduction of mandatory hallmarking and HUID number, the purity of gold in India is no longer a concern.
Moreover, NRIs in Dubai do not get VAT refunds, and Indians travelling abroad get only 60% of the VAT refunded on gold purchases. Gold trade analyst Bhargav Baidya suggests that the 1% duty difference between gold jewellery in India and Dubai can be made up by Indian jewellers offering discounts to retain and attract customers.
Saurabh Gadgil, chairman of PNG Jewellers, says Indian import duty is now at par with the US, allowing Indian jewellers to offer competitive prices compared to other countries around the world. The reduced customs duty is expected to make buying gold in India more attractive and convenient for Indian consumers, potentially leading to a significant shift in their gold buying preferences.