UAE NRIs may soon find it easier to carry gold home as India plans customs overhaul

Dubai: Many UAE-based Indians planning trips home for the wedding season are reassessing how much real gold they can safely carry. Jewellery remains central to family celebrations, but the discomfort of customs checks continues to cast a shadow over what should be a festive journey.

Gulf News recently reported that NRIs in the UAE are urging India to update its decades-old duty-free gold allowance, which has not kept pace with rising incomes, inflation, or the realities of frequent travel between the Gulf and India. Those calls have become more urgent as travellers say current rules feel outdated and unclear.

Now, a development in New Delhi is raising expectations. India’s Finance Minister Nirmala Sitharaman has hinted at a full overhaul of the customs system as her next major reform priority, signalling potential relief for NRIs who want simpler, more transparent rules when carrying gold home.

Speaking at the Hindustan Times Leadership Summit on Saturday, Sitharaman said the government is preparing a comprehensive redesign of customs processes to make them easier to comply with and far less intimidating. She stressed that “customs is my next big cleaning-up assignment,” placing it alongside earlier reforms in income tax and GST.

Sitharaman added that India typically aligns with standards set by the World Customs Organisation, suggesting new rules may move closer to global benchmarks. For expats, that could mean more predictable procedures at Indian airports and clearer guidelines on what can be carried without penalty.

She stated that customs duties have already been “steadily” reduced over the last two years. But items still above “optimal” duty levels will also be reviewed — a point closely watched by NRIs who hope gold-related duties and processes might be among the areas streamlined.

Sitharaman drew parallels to the old income-tax administration, which she said once created more fear than clarity and contributed to the phrase “tax terrorism.” She highlighted the success of faceless assessments, reduced discretion for officers, and simplified compliance as examples of what a reformed customs framework should achieve.

The minister said the same approach is now needed at ports and airports, where many travellers — including NRIs returning from the UAE — report inconsistent experiences. She acknowledged that the challenge will be twofold: making customs easier for honest passengers while maintaining strong checks against smuggling and illicit trade.

One idea under consideration is a greater reliance on technology, including full scanning with minimal officer interaction. This, she suggested, could reduce the discretion that often makes travellers uneasy when carrying personal gold.

While the minister did not announce specific changes to gold allowances, the direction of reform is notable for the UAE’s large Indian community. Frequent travellers say current limits and manual checks often cause confusion or stress, especially during wedding season when gold gifting peaks.

Any move toward clearer rules, lower duties, or less intrusive screening would directly benefit expats who travel home with jewellery for cultural, religious, or family reasons. Gulf News previously highlighted how NRIs believe the existing allowance does not reflect modern travel patterns — a gap the upcoming review may finally address.

The timing also matters: India’s airport traffic is rising, and UAE–India routes remain among the world’s busiest. A simplified customs system could significantly ease the movement of personal belongings, including gold, for millions of passengers each year.

Sitharaman’s comments came as the rupee briefly hit an all-time low of 90 to the US dollar, though she said exchange rates “will find their natural level” and must be viewed in the context of India’s economic fundamentals.

The Reserve Bank of India has raised its GDP growth forecast for 2025-26 to 7.3 per cent, citing strong agricultural prospects, GST rate cuts, low inflation and healthier corporate and banking balance sheets.

The RBI also cut its inflation estimate for the next financial year to 2 per cent from 2.6 per cent earlier, driven by easing food prices and policy adjustments — conditions that strengthen the backdrop for structural reforms, including customs modernisation.

For UAE NRIs, the broader economic momentum matters less than the practical impact: a cleaner, clearer, more predictable customs system that could finally make taking gold home feel normal again, not nerve-wracking.