The recent reduction in customs duty on gold imports in India’s 2024 budget is expected to significantly alter the gold purchasing habits of Indian consumers, making it less attractive to buy gold from Dubai.

This change narrows the duty differential, resulting in lower gold prices in India and boosting local gold jewelry production. Indian jewellers anticipate that a substantial portion of their business will shift from the UAE to India, as the reduced import duty allows them to offer competitive prices.

Additionally, the lower labor costs and mandatory hallmarking in India enhance the appeal of buying gold domestically.