India’s Union Budget 2026 Eases Customs Rules on Gold Jewellery — A Big Relief for UAE NRIs
India Budget 2026 Gold Jewellery Customs Rules for UAE NRIs Explained
The Indian government’s Union Budget for 2026–27 has introduced a series of reforms to streamline customs and baggage rules for international travellers — especially benefiting Indian expatriates living in the United Arab Emirates (UAE) and other countries. One of the most talked-about changes is the simplification of customs rules on importing gold jewellery into India.
What Exactly Has Changed?
1. Removal of Value Caps on Duty-Free Gold Jewellery
Earlier, customs rules governing duty-free import of gold jewellery for returning Indians and persons of Indian origin included both weight limits and value caps (a maximum monetary limit). Under this regime, even if a traveller’s gold jewellery was within the allowed weight (like 20 g for men or 40 g for women), high gold prices could push its value over the permitted cap, creating confusion and extra customs duties.
Budget 2026 has scrapped the value-based cap altogether. The only test now is weight — meaning customs duty-free eligibility depends solely on how much jewellery you carry, irrespective of its market price.
This change has been welcomed by the Indian community in the UAE, who frequently buy gold there before returning home.
What Are the New Duty-Free Weight Limits?
Under the revised baggage rules (effective from 2 February 2026), the weight-based gold jewellery limits remain the same as before, but now without any monetary ceiling:
- Women: Up to 40 grams of gold jewellery duty-free
- Men and Other Passengers: Up to 20 grams duty-free
(These apply when the jewellery is part of your bona fide accompanied baggage.)
Importantly: These limits are now purely quantitative — travellers don’t need to worry about gold market prices affecting customs calculations.
At current gold rates, this effectively equates to a much higher duty-free value than under the old rules. For example, with gold prices where they stand in early 2026, 40 g of jewellery could be worth several lakhs of rupees — far above the old value cap.
Why This Matters for UAE NRIs
1. Gold Shopping is a Big Tradition
UAE cities like Dubai and Abu Dhabi are popular destinations for buying gold due to competitive pricing and wide variety, making this a common activity among Indian expats before they travel home.
Previously, even if a UAE resident bought gold worth more than the value cap, they could face customs duties and hassles on arrival in India. Removing the value limit simplifies this process and reduces uncertainty at customs checkpoints.
2. Simpler Customs Experience
With the value cap gone, customs officials only check the weight of the jewellery — which makes baggage evaluation faster and more predictable, reducing disputes and delays. Many in the Indian diaspora have long called for this reform.
Broader Customs and Baggage Reforms
The gold rule change is part of a wider overhaul of import rules under the Customs Baggage (Declaration and Processing) Regulations, 2026 and a consolidated Baggage Rules, 2026. Key highlights include:
1. Higher General Duty-Free Allowance
The basic duty-free allowance for arriving international travellers has been increased from ₹50,000 to ₹75,000 — applicable to Indian residents, NRIs, and people of Indian origin.
2. Clearer Electronic Declarations
The new framework allows advance electronic baggage declarations, helping speed up customs clearance for passengers on arrival.
3. Laptops and Personal Electronics
One laptop per passenger over the age of 18 can now be brought in duty-free, separate from the general ₹75,000 limit. This benefits frequent business and tech travellers.
Who Benefits Most?
The revised rules benefit:
- NRIs and Indian expats residing in the UAE and other foreign countries
- Tourists of Indian origin returning to India
- Frequent international flyers carrying gifts, electronics, or jewellery
- People who shop abroad and bring items back home for personal use
The changes are not intended for commercial imports — rather, they focus on personal use, fair travel allowances, and simplified customs compliance.
Conclusion: A Win for the Diaspora
By removing outdated monetary caps and focusing on weight-based limits, the Budget 2026 customs reforms offer a welcome relief to Indians travelling from the UAE and globally — especially those carrying gold jewellery as part of returning home or gifting. This aligns customs policy with real-world gold prices and makes travel smoother and more predictable.