India eases gold customs rule: Indian expats in UAE welcome update in Budget 2026

Dubai: Indian expats in the UAE have welcomed a game-changing update to gold customs rules following India’s Union Budget 2026 presented by Finance Minister Nirmala Sitharaman on Sunday, February 1.

As first reported by Gulf News on Monday, the value cap set for customs duty-free gold allowance has been scrapped, with only weight limits remaining.

As per the new rules, female passengers can carry up to 40 grams of gold jewellery duty-free, while male passengers are allowed 20 grams, provided it is carried in bona fide baggage.

The old rules had tied the same weight limits to value caps of Rs100,000 for women and Rs50,000 for men, figures that became increasingly problematic as gold prices soared since the rules were last updated in 2016.

Community petition pays off

The removal of outdated value caps on duty-free gold jewellery allowances that had caused years of confusion, alleged harassment and unnecessary stress at Indian airports, is hailed as a victory for the Non-Resident Indians (NRIs) in the UAE and across the world.

The change comes months after the Indian Association Sharjah sent a petition to the finance minister in September 2025 demanding the abolition of the outdated rule.

"We had received many calls from expats who said we had taken the right action by sending the petition. This is a welcome move that will avoid the unnecessary tension caused to several NRIs," Nissar Thalangara, president of Indian Association Sharjah, told Gulf News.

Automatic non-compliance ended

Thalangara explained how the outdated caps had turned compliant travellers into unwitting rule-breakers simply because of market fluctuations beyond their control.

"Many NRIs were automatically gaining the status of non-compliance even though they were carrying the permitted weight of gold because of high market rate of the yellow metal," he pointed out.

"Because of this, several passengers were concerned and confused when they travelled. Many reportedly faced hassles and harassment also. The new rule will clarify things to passengers, avoid confusions and enhance compliance. It can also avoid instances of alleged bribery," he said.

Personal ordeal sparked action

For TK Pratheep, vice president of Indian Association Sharjah, the victory is personal. He was allegedly harassed by an official at an airport in Kerala in September 2025, an incident that became the catalyst for the association's petition.

"This is a great achievement for us. That day, I faced the harassment and made additional payment. It wasn't just for me. I am glad to have taken up the cause of thousands of Indian expats, especially the blue-collar workers who do not know much about the rules," Pratheep said.

He recalled witnessing many workers facing difficulties because they were carrying jewellery in bags rather than wearing it. "When it happened to me, I realised the real depth of the issue and that is how we took it up with the ministry."

Minister thanked

The community leaders hailed India's finance minister for listening to expats' concerns and implementing changes that will benefit millions of NRIs worldwide.

In a letter to the minister sent on Monday, Thalangara added: “We are particularly thankful that this reform addresses the very concerns highlighted in the representation submitted by Indian Association Sharjah."

"This reform stands as a strong example of responsive governance and constructive engagement with the Indian diaspora. We thank you for acknowledging the concerns raised by overseas Indians and for delivering a fair, transparent, and practical solution that benefits travellers and authorities alike.”

Long-overdue reform

The Indian People’s Forum (IPF), UAE, another community group, also welcomed the move, calling it a landmark and long-overdue reform for the Indian diaspora.

"The revised rule removes outdated valuation limits and aligns regulations with prevailing gold prices, offering major relief to Indian expatriates, particularly in the UAE, who frequently travel to India for family, cultural, and religious occasions," pointed out Jitendra Vaidya, president of IPF UAE.

People-focused policy

He described the move as “a decisive, people-focused policy that addresses a genuine concern of overseas Indians with fairness and clarity.”

He noted that gold jewellery holds deep cultural and emotional significance for Indian families, and modernising customs norms reflects an understanding of social realities alongside economic prudence.

Vaidya, who appreciated the Indian Prime Minister Narendra Modi and the Union Government, said the reform reinforces India’s commitment to its global diaspora.

Great news for Indian women

Meanwhile, Chaya Devi Krishnamurthi, a social worker with the Indian Association Ajman, who is in charge of addressing concerns of expats in distress, said it was great news especially for Indian women travelling home from the Gulf countries.

“Many women here carry gold when they go home, especially for festivals and weddings. With the gold prices skyrocketing, it has been difficult for many to carry gold without paying customs duty,” she pointed out.

“I am sure people would have hesitated to carry the actual weight of gold allowed because of the customs duty linked to the value of gold. This new rule will change that and also the way people give gold as a gift as well,” she added.

Stability and clarity

Sajeev Purushothaman, CEO of an oil and gas company and another active community worker, said the change in rule brought clarity and stability to gold regulations for NRIs while ensuring policy certainty.

"The Government reaffirmed that gold brought within prescribed duty-paid limits by eligible passengers will continue to be permitted, while not linking it with the changing gold rates as well as by emphasising strict enforcement against misuse and illegal channels. This balanced approach supports and helps genuine NRI travellers and strengthens transparency and compliance in carrying gold to India," he added.

Industry welcomes move

Business leaders in the UAE's jewellery sector have also welcomed the update enthusiastically.

Shamlal Ahamed, managing director of International Operations at Malabar Gold and Diamonds, called it "a welcome and practical move for the Indian expatriate community around the world."

"It acknowledges the cultural importance of jewellery, simplifies compliance for travellers, and brings greater clarity at entry points," he added.

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.