Dubai Gold Price vs. India: How Much Can You Save After Import Duty?

Dubai has long been a preferred destination for gold buyers, especially for Indians. The key reason is the price difference. As of March 10, 2025, the gold price in Dubai stood at 3,440 AED per 10 grams, which translates to ₹81,767 (conversion rate: 1 AED = ₹23.77). Comparatively, in Mumbai, gold was priced at ₹87,820 per 10 grams, making Dubai’s gold about 7% cheaper.

Furthermore, gold prices in the international market are even higher, trading at $2,913.12 per ounce (28.3495 grams). This makes both Dubai and Mumbai relatively more affordable options.

Understanding the Tariff Value of Gold

When importing gold to India, customs duty is calculated based on the tariff value (also called the base rate) set by the government rather than the price at which it was purchased.

What Is the Import Duty on Gold?

The import duty on gold was significantly reduced from 15% to 6% in the Union Budget 2024-25 by Finance Minister Nirmala Sitharaman. This change has made importing gold to India more affordable.

How Much Do You Save When Buying Gold from Dubai?

Indian Customs calculates duty based on a notified tariff value, not the purchase price.

Currently, the tariff price of gold stands at $927 per 10 grams. It was reduced on February 28 by the Central Board of Indirect Taxes and Customs (CBIC) from the $938 earlier.

Here’s the calculation: 

Tariff Value in INR = Tariff Value in USD×USD/INR Conversion Rate

Tariff Value in INR = 927*87.31

Tariff Value =₹80,936.37

Calculate Customs Duty

Customs duty is 6% of the notified tariff value.

₹80,936.37*6%= 4,856

Thus, after adding this duty, the effective cost of Dubai gold in India becomes ₹86,623 per 10 grams. This still remains cheaper than Mumbai’s gold price by approximately 1.36%.

Note: USD/INR conversion is considered at 87.31. 

How Much Gold Can You Bring from Dubai to India?

Indian travellers bringing gold from Dubai must adhere to certain limits:

1. Male passengers can carry up to 20 grams of gold, with a maximum value of ₹50,000, duty-free.
2. Female passengers can carry up to 40 grams, with a maximum value of ₹1,00,000, duty-free.
3. If the gold exceeds these limits, customs duty must be paid on the excess amount.

Conclusion: Is It Worth Buying Gold from Dubai?

While gold prices in Dubai are lower, the final cost depends on import duty, tariff value, and conversion rates. With recent reductions in import duty, the savings are relatively lower but still exist. However, if someone buys within the duty-free limits, the benefit can be more significant.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.