Big win for Indian expats in UAE: India Budget 2026 eases customs rule for gold jewellery

Dubai: In a big win for Indian expats in the UAE and Non-Resident Indians (NRIs) across the world, India has eased customs rules for carrying gold jewellery, Gulf News can reveal.

This follows the announcement of the Customs Baggage Rules, 2026, in India's Union Budget 2026 by Finance Minister Nirmala Sitharaman on Sunday, February 1.

The customs rules now specify duty-free jewellery limits for returning residents or tourists of Indian origin as follows: Female passengers will be allowed duty-free clearance of jewellery up to 40 grams, while the limit will be 20 grams for male passengers if carried in bona fide baggage.

Previously, the existing rules allowed a female passenger to carry up to 40 grams of gold jewellery and a male passenger up to 20 grams, subject to value caps of Rs100,000 and Rs50,000 respectively.

For gold above these limits, customs duty was applicable. Passengers were required to carry purchase invoices for the gold and declare excess gold valued above the rate stipulated at the Red Channel to avoid penalties.

The value cap has now been removed and only the weight limit remains, it was confirmed to Gulf News.

‘In line with realities’

Announcing the change in the Customs Baggage Rules, 2026 in her Budget speech, Sitharaman said the existing framework needed an overhaul.

"I propose to revise provisions governing baggage clearance during international travel to address genuine concerns of passengers," she said.

"The revised rules will enhance duty-free allowances in line with the present day travel realities and provide clarity in temporary carriage of goods brought in or taken out," the minister added.

New notifications issued

Gulf News is in possession of copies of two notifications issued in this regard by the Indian Ministry of Finance.

The notifications issued by the Central Board of Indirect Taxes (CBIT) under the Department of Revenue is meant to be published in the Indian Gazette and has been circulated to customs offices across the country.

CBIT is a statutory body responsible for administering indirect taxes, including GST, Customs, Central Excise, and Service Tax.

Cochin Customs in Kerala’s Kochi confirmed receiving the notifications and said the new rules are implemented from Monday, February 2.

"The value cap has been removed in the case of jewellery and the limit for customs duty for other items has been increased from Rs50,000 to Rs75,000,” Cochin Customs said.

That means, the duty-free allowance for passengers [residents or tourists of Indian origin arriving in India] bringing imported goods into India other than by land will be allowed duty-free clearance of articles up to Rs 75,000, provided the items are carried on the person or form part of bona fide accompanied baggage.

Who benefits?

As per the CBIT notifications, the change in the customs duty rules for jewellery is applicable for an Indian resident or a tourist of Indian origin who has been residing abroad for over one year arriving through any mode other than land.

Jewellery, under these new rules, refers to articles of adornment ordinarily worn by a person and made of gold, silver, platinum or other precious metals, whether studded or not.

This means an Indian expat who has lived outside India for over a year can now carry the stipulated weight of gold ornaments irrespective of the market rate of gold.

On Monday, the market rate of gold in Dubai stood at over Dh570 (around Rs14,200) for 24 Carat and Dh530 ( around Rs13,200) for 22 Carat gold.

Long-pending demand

As reported by Gulf News earlier, Indian expats in the UAE had urged the Indian government to update the outdated customs duty regulations on gold jewellery, citing confusion and ongoing harassment of travellers at Indian airports.

Though it had been a long-pending demand of Indian expats here, a fresh appeal came from the Indian Association Sharjah in September 2025 following persistent difficulties faced by Non-Resident Indians (NRIs), despite Delhi High Court directives aimed at preventing harassment of genuine travellers carrying personal gold jewellery.

The association's petition highlighted an ambiguity in Customs Baggage Declaration Regulations (Notification No. 31/2016-Customs) regarding the permissible allowance of gold ornaments for NRIs who have been living abroad for over a year.

Hardships due to outdated cap

The petition addressed to Indian Finance Minister Nirmala Sitharaman pointed out that when the rule was last updated in 2016, gold cost around Rs2,500 per gram. It cited the skyrocketing market rates of gold, making the existing caps unrealistic and prone to disputes at airports.

The petition highlighted that Indian expats were increasingly facing hardships due to the outdated value cap.

"The mismatch between the stipulated value and the present market reality often leads to unnecessary disputes at customs checkpoints, inconvenience for genuine travellers and regrettably, it also opens the door for corrupt practices," it said.

The petition requested that the value caps be removed, allowing passengers to carry the stipulated weight of gold regardless of market price fluctuations.

Case of harassment

The Indian Association Sharjah took up the outdated gold customs rule after its vice president, TK Pratheep, faced a stressful experience at Kochi International Airport in the south Indian state of Kerala.

Alleging harassment by the customs officials, he had said that the officials had calculated duty using prevailing market rates.

Nissar Thalangara, president of the Indian Association Sharjah, who signed the petition, said such a change would ease difficulties for travellers and reduce unnecessary burdens on customs officials.

He had urged the finance minister to update the law, noting that implementing a system aligned with the intent of allowing the specified weight of gold ornaments, irrespective of gold price fluctuations, would provide relief to both air travellers and authorities.