Last Updated:
Let’s explore which state offers the most affordable gold and how it compares to the market rate.
As of November 28, the price of 24-carat gold in Delhi was Rs 7,750 per gram.
Gold prices vary across the world, and India is no exception. However, there is one state in the country where gold is available at significantly lower prices compared to other regions. This state not only offers cheaper gold but also ranks highest in terms of gold consumption per capita. Let’s explore which state offers the most affordable gold, how it compares to the market rate, and the factors contributing to its lower cost.
Where is Gold the Cheapest in India?
Kerala is the state where gold is cheaper than in most other parts of the country. The price difference can be attributed to several factors, including lower transportation costs, tax structures, and import duties. Kerala’s proximity to major ports allows for easier and more affordable imports, which helps reduce the overall cost of gold.
As of November 28, the price of 24-carat gold in Delhi was Rs 7,750 per gram. In Kerala, however, it is priced slightly lower at Rs 7,735 per gram, reflecting the price difference.
Another reason for the lower gold prices in Kerala is tax evasion by some traders. Reports suggest that a number of gold merchants in the state evade GST, which allows them to pass on the savings to customers in the form of lower prices.
Other States with Affordable Gold
While Kerala stands out for its lower gold prices, other states also report relatively affordable gold. Karnataka, Tamil Nadu, Andhra Pradesh, and West Bengal follow Kerala in terms of lower gold costs. According to the World Gold Council, Kerala has the highest per capita consumption of gold in India, with an annual consumption of 200-225 tonnes. This high demand contributes to the state’s prominence in the gold market.
In summary, Kerala not only offers the cheapest gold in India but also leads the nation in terms of gold consumption.
