India’s new Customs Baggage Rules remove outdated value limits on gold jewellery, easing travel and ending years of confusion for NRIs.
Budget 2026 Brings Long-Awaited Relief for NRIs
India’s Union Budget 2026 has delivered a major win for Indian expats in the UAE and Non-Resident Indians worldwide. The government has eased customs rules for carrying gold jewellery, removing long-criticised value caps that often led to disputes and delays at airports.
The change follows the announcement of the Customs Baggage Rules, 2026, by Nirmala Sitharaman on February 1, a move welcomed by NRI groups who had been lobbying for reform for nearly a decade.
What Has Changed in the Gold Jewellery Rules
Under the revised rules, duty-free gold jewellery allowances are now based only on weight, not value.
• Female passengers may carry up to 40 grams of gold jewellery duty-free
• Male passengers may carry up to 20 grams duty-free
Earlier, these same weight limits were capped at Rs100,000 for women and Rs50,000 for men, thresholds that became impractical as gold prices surged. Those value caps have now been completely removed.
As long as jewellery is within the permitted weight and carried as bona fide baggage, no customs duty applies, regardless of market price.
Why the Rule Was Changed
Announcing the revision, Sitharaman said the existing baggage framework had become outdated.
She noted that the new rules are designed to address genuine passenger concerns, align allowances with present-day travel realities, and provide greater clarity on personal items carried during international travel.
For expats, the reform eliminates uncertainty at customs counters and removes the need to justify the value of personal jewellery.
New notifications issued and implemented
The Indian Ministry of Finance has issued two official notifications through the Central Board of Indirect Taxes under the Department of Revenue.
Following this, authorities circulated the notifications to customs offices across the country and scheduled them for publication in the Indian Gazette.
Confirming the rollout, Cochin Customs said the new rules came into effect on February 2. It also noted that the general duty-free allowance for other imported items has increased from Rs 50,000 to Rs 75,000 for passengers arriving by air or sea.
Who benefits from the new gold rules
Under the revised framework, the jewellery allowance applies to:
- Indian residents or tourists of Indian origin
- Individuals who have lived abroad for more than one year
- Passengers arriving in India by any mode other than land
The rules define jewellery as ornaments made of gold, silver, platinum, or other precious metals. These may be studded or plain, provided they are items ordinarily worn by a person.
This means UAE-based Indian expats can now carry permitted gold jewellery by weight alone, without worrying about fluctuating gold prices.
Why the Old Value Cap Caused Hardship
When authorities last updated the rule in 2016, gold cost around Rs 2,500 per gram. Since then, prices have surged nearly sixfold.
Today, in Dubai alone, 24-carat gold trades above Dh570 per gram, while 22-carat gold hovers around Dh530 per gram. As a result, even modest personal jewellery often pushed travellers beyond the old value limits.
Consequently, many NRIs faced questioning at Indian airports, duty calculations based on current prices, and, in some cases, allegations of harassment during customs checks.
A long campaign by Indian expats
Against this backdrop, Indian expat organisations in the UAE, including the Indian Association Sharjah, repeatedly urged the government to revise the outdated rule.
In a renewed appeal in September 2025, the groups flagged persistent problems despite court directives meant to prevent harassment of genuine travellers. They argued that the widening gap between soaring gold prices and fixed value caps created confusion, inconvenience, and opportunities for misuse at customs checkpoints.
Crucially, the organisations pushed for a clear, weight-based system. Budget 2026 has now delivered exactly that.
What this means for UAE-based Indians
For Indian expats in the UAE, the change brings much-needed clarity and peace of mind.
Travellers no longer need to track daily gold prices, carry invoices for personal jewellery, or worry about breaching an arbitrary value limit. At the same time, customs officers benefit from simpler rules, helping reduce friction at airports.
Ultimately, Budget 2026 sends a clear message: India has updated its customs framework to reflect current realities, addressed long-standing NRI concerns, and made travel with personal gold jewellery significantly easier.
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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.
Photo used for illustrative purposes. AFP/ Gulf News
