Dubai: The Indian Government has sprung a surprise – buying gold in India will become less expensive.
This follows the announcement to reduce India’s import duty for gold and other precious metals from 12.5 per cent to 7.5 per cent. But there is a 2.5 per cent additional cess placed on gold.
Jewellery retailers in India immediately dropped prices - by Rs50 a gram. Right now, a gram of gold costs Rs4,550 in India after starting the day at Rs4,600. In Dubai, the price of 22K gram of gold in rupee terms is Rs4,200.
States in India also charge 3 per cent as GST (Goods and Service Tax) on gold jewellery pruchases.
“The net result is that gold becomes 2.5 per cent cheaper in India and that will lead to lowering the price difference between buying here and in India,” said Cyriac Varghese, General Manager at Sky Jewellery.
Need Indian tourists
UAE gold and jewellery retailers have been waiting for tourists from India to show up and start buying at the levels they used to until last year. But COVID-19 and flight disruptions ensured such buying remains muted – only a full-scale resumption of flights will correct that.