Indian Families in UAE Recalculate Gold Purchases Following India's Import Duty Hike

Indian families residing in the UAE have begun recalculating their gold purchases, particularly for weddings and travel, following India’s decision to raise import duties on gold and silver to 15%. This move has significantly widened the price gap between Dubai and Indian markets.

According to jewelry retailers, gold and jewelry prices in the Gulf region could become approximately 12% cheaper compared to India—a differential that carries even greater weight as global gold prices hover near record highs.

This price gap gains particular significance as Indian families prepare to travel home for the summer vacation season, alongside the upcoming wedding season in July and August. Many families now prefer to finalize their gold purchases in Dubai before traveling rather than buying within India.

Indian customs regulations permit eligible international passengers to carry specific quantities of gold duty-free. A female passenger can carry up to 40 grams of gold jewelry, while a male passenger is allowed up to 20 grams.

Consequently, a single family can legally combine the allowances of its members; a husband and wife can carry 60 grams, and with an adult daughter, the amount increases to 100 grams. Meanwhile, a family consisting of two women and two men can carry 120 grams, with some larger family combinations potentially reaching up to 140 grams or more.