Why is gold cheaper in dubai than in India?
Kannada actress Ranya Rao was recently arrested at Bengaluru airport with 14.8 kg of gold. After this, discussions are in full swing on gold smuggling between dubai and india and the difference in its price in both the countries. Ranya, the stepdaughter of senior IPS officer Ramachandra Rao, had hidden some gold bars in her clothes and also wore some herself to avoid customs. Ranya has visited dubai 4 times in the last 15 days, which deepened suspicion on her. Based on this, an operation was conducted and a large amount of gold was seized from her.
Is gold cheaper in Dubai?
gold is cheaper in dubai than in India. This city has long been a center of gold trade, where gold is often available at a lower price than in India. Now the question arises that why is gold cheaper in Dubai?
There is no tax on the purchase of gold in dubai, so buyers can buy gold at market rates without any additional charge. Unlike india, dubai does not levy import duty on gold, which reduces its cost to a great extent for consumers. There is a lot of competition in the gold market in Dubai. In such a situation, many dealers offer attractive rates to attract buyers. gold markets in dubai have been flourishing, so it has become an important market for gold collection, sale and trading.
According to Bayut, as of september 25, 2024, the price of 24 carat gold in dubai was AED (UAE Dirham) 313.66 per gram (about Rs 7,138.96 per gram), while in india this price was Rs 8,225 per gram.
Duties and restrictions on gold imports in India
In view of the economic implications of gold imports, the government of india has imposed different duties and rules in the last few years. According to a Reuters report, in July 2024, the custom duty on gold imports has been reduced from 15 percent to about 6 percent. The purpose of this reduction is to reduce smuggling as well as promote legal imports, making gold more affordable for consumers. Even though gold is cheap in dubai, many rules have to be followed to bring it to India.
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