Gold has been an integral part of Indian culture and tradition for centuries. It is not only a symbol of wealth but also holds great emotional and religious significance. Given its importance, it is not surprising that India is one of the largest consumers of gold in the world. However, the price of gold varies from state to state, and in this article, we will explore which state has the cheapest gold rate in India.
Before we delve into the specific state, it is important to understand the factors that influence the price of gold. The price of gold is determined by various global and domestic factors such as international gold prices, the strength of the US dollar, inflation, demand and supply, import duties, taxes, and other economic policies. In addition, local factors such as the availability of gold, jeweler commissions, and transportation costs also affect the price of gold.
Based on the above factors, the state with the cheapest gold rate in India is Kerala. Kerala is known for its large population of gold buyers and its thriving gold industry. Kerala’s gold industry is unique in that it is dominated by small and medium-sized jewelry stores rather than large national chains. This has resulted in fierce competition among jewelers, which has helped keep the prices of gold relatively low.
Another factor that contributes to Kerala’s low gold prices is the state’s lower tax rate. Kerala charges only 5% state GST on gold jewelry, which is lower than the national average of 3%. Additionally, Kerala has not implemented any additional taxes or duties on gold, making it an attractive destination for gold buyers.
Apart from Kerala, other states with relatively low gold prices include West Bengal, Bihar, and Goa. These states also have a strong tradition of gold buying, and their local markets are highly competitive. However, their tax rates are slightly higher than Kerala, which results in slightly higher gold prices.
In contrast, states such as Gujarat, Maharashtra, and Tamil Nadu have higher gold prices due to their high taxes and duties. These states also have a large number of national and international jewelry chains, which charge higher prices than small and medium-sized jewelers.
In conclusion, Kerala is the state with the cheapest gold rate in India due to its highly competitive local market and lower tax rates. However, gold prices are subject to fluctuations and can change rapidly based on global and local economic conditions. Therefore, it is advisable to keep track of the latest gold prices and buy from a trusted jeweler.