India’s 15% import duty increase is expanding the gold price difference between Dubai and India, benefiting travellers.
Dubai: Indian families in the UAE are increasingly reassessing wedding and holiday gold purchases after India raised import duties on gold and silver to 15%, significantly widening the price gap between Dubai and Indian markets.
Jewellery retailers say the latest increase could make gold and jewellery in the GCC roughly 12% cheaper than in India, with the price gap becoming even more pronounced as global gold prices stay near record highs.
This difference is particularly significant for Indian expatriate families travelling home during the summer holidays and the upcoming NRI wedding season in July and August. Many are now opting to complete wedding jewellery purchases in Dubai before departure, rather than buying in India after arrival.
Legally maximizing allowances
Under existing Indian customs regulations for eligible overseas passengers, women can carry up to 40 grams of gold jewellery duty-free, while men can carry up to 20 grams. This allows families to collectively bring in larger quantities legally, depending on their composition.
For example, a husband and wife together can carry up to 60 grams duty-free. Including an adult daughter raises the total allowance to 100 grams. In a family with two eligible women and two men, the combined duty-free limit can reach 120 grams, while certain larger family configurations may allow up to 140 grams or more.
At current Dubai gold rates on May 14, 2026 — Dh566.50 per gram for 24K, Dh524.75 for 22K, Dh503 for 21K, and Dh431.25 for 18K — a family collectively carrying 140 grams of jewellery could be transporting gold worth over Dh73,000 at today’s 22K rate alone. (Check latest forex rates for updates.)
Dubai prices versus Indian prices
With India’s gold import duty now raised to 15%, along with additional local taxes and higher making charges, the overall cost of purchasing wedding and family jewellery in India is expected to rise further.
This widening price gap is becoming more evident as global gold prices remain near record highs. For families buying 100 grams or more for weddings, engagements, or gifting, the difference can translate into savings worth several thousand dirhams when purchasing in Dubai rather than in India.
Dubai also maintains structural pricing advantages beyond the duty differential. Investment-grade gold bars in the UAE remain VAT-free, tourists can claim VAT refunds on eligible jewellery purchases, and making charges are often lower than in many other markets. Jewellers also highlight strict UAE regulations on gold purity standards as an additional factor attracting buyers.
Rush in summer travel purchases
The timing of India’s duty increase aligns with one of the busiest travel periods for Indian expatriates in the Gulf. School holidays, summer leave, and the NRI wedding season typically drive a significant surge in jewellery purchases across the UAE between June and August.
Retailers say many residents are now bringing forward purchases to lock in Dubai prices before travelling home, particularly for bridal jewellery and family gifting. Some jewellers are expecting one of the strongest summer demand periods in recent years, as Indian buyers increasingly view Dubai as a more cost-effective destination for jewellery shopping following the duty hike.
The UAE’s wider selection is also adding to its appeal. Retailers note that GCC shoppers have access to jewellery sourced from more than 20 countries and hundreds of thousands of designs, while higher import duties may make international collections more expensive in India.
What travellers must remember
Indian customs regulations continue to distinguish between jewellery and bullion products such as gold bars and coins.
Passengers carrying quantities beyond the permitted duty-free allowance must declare them upon arrival and pay applicable customs duties. Travellers are also advised to retain invoices and purity certificates for customs verification.
For many UAE-based families, however, the decision has become increasingly straightforward: with Indian gold prices expected to rise further following the latest duty increase, purchasing jewellery in Dubai ahead of summer travel may now offer noticeably better value than in previous years.
