Dubai, UAE: Non-resident Indians (NRIs) are increasingly buying gold jewelry in India rather than Dubai, following a reduction in customs duty and lower labor costs. Gold jewelry purchases by NRIs in India have risen by 10-15% during the recent wedding season, with sales expected to reach 80 tonnes in November and December. This shift comes after India cut the gold import duty to 6% from 15% in July, making gold more affordable.

In addition to the lower duty, labor costs in India are significantly cheaper, resulting in jewelry making charges that are half those in Dubai. As a result, many NRIs now prefer to buy gold in India, where mandatory hallmarking and a lower making charge are also attractive factors.

While Dubai has long been a popular gold buying destination, NRIs now find it more cost-effective to purchase locally, with Indian jewelers seeing a surge in sales. Joy Alukkas, chairman of the eponymous jewelry chain, reported a 10% increase in NRI purchases in India this wedding season, while sales in Dubai outlets have declined. Additionally, India’s gold demand surged 18% in the September quarter, fueled by lower prices and the import duty cut.

With gold prices rising by 23% over the past year, NRIs are capitalizing on favorable conditions, further diminishing Dubai's dominance in the gold market.