Can Non-Resident Indians bring gold coins or bullion from the UAE into India without customs duty after the recent rise in import taxes, or are they still required to pay applicable charges under the new rules?
Are NRIs allowed to bring gold coins or bars from the UAE to India without paying duty after the recent increase in import duty?
Following the recent policy change announced by India on May 13, the country has significantly increased import duties on gold, silver, and other precious metals, raising the rate from around 6 per cent to nearly 15 per cent. This step has been taken primarily with the intention of strengthening India’s foreign exchange reserves and reducing pressure on its external account, as gold imports form a major component of the nation’s import bill. The sudden hike has had immediate effects on international trade dynamics, especially between India and major gold trading hubs such as the United Arab Emirates.
In response to the revised duty structure, there has been a noticeable rise in demand for gold jewellery in Dubai, largely driven by the widening price difference between the UAE and India. Since Dubai is known for offering competitively priced gold due to lower taxes and established bullion markets, Indian buyers and tourists have been increasingly purchasing gold there before returning home. This trend has become more prominent among travellers and Non-Resident Indians (NRIs), who often take advantage of overseas price advantages when purchasing precious metals.
However, industry experts and jewellers in Dubai have clarified that while Indian residents, tourists, and NRIs are allowed to bring gold into India from the UAE, this is not without regulation. The import of gold is subject to strict customs rules enforced by Indian authorities. Individuals are permitted to carry gold in various forms, including jewellery, coins, and even bars, but they must comply with mandatory declaration procedures upon arrival in India. Additionally, all applicable customs duties must be paid according to the prevailing government guidelines.
Speaking on the matter, Ramesh Kalyanaraman, executive director of Kalyan Jewellers, emphasized that bringing gold into India is legally permitted for eligible travellers, but it must be done within the framework of customs regulations. He explained that NRIs and Indian citizens travelling from the UAE are allowed to transport gold items, including bullion and ornaments, provided they properly declare these items at customs checkpoints and settle the required duty charges. According to him, the rules are clear in allowing such imports, but compliance with documentation and taxation requirements is essential to avoid legal complications.
The increase in import duty has also influenced consumer behavior and purchasing patterns. Many buyers are now considering timing and location more carefully before investing in gold, with some choosing to buy in the UAE where prices remain relatively lower compared to India. At the same time, Indian authorities continue to monitor imports closely to ensure that regulations are followed and that revenue collection from customs duties remains consistent.
Overall, while the higher import duty is aimed at supporting macroeconomic stability and controlling gold inflows into the country, it has also created ripple effects across international gold markets, particularly affecting trade routes between India and the Gulf region. Despite these changes, the fundamental rule remains that gold can still be brought into India from abroad, including the UAE, as long as travellers adhere strictly to customs declarations and pay the necessary duties as mandated by Indian law.
Anil Dhanak, who serves as the managing director of Kanz Jewels, has reiterated that individuals travelling from abroad, including Non-Resident Indians (NRIs) and Indian citizens, are permitted to bring gold coins and gold bars into India. However, he pointed out an important distinction under Indian customs regulations: such forms of gold are not included under the duty-free allowance that is typically available for personal jewellery. This means that while travellers can legally carry bullion and coins, these items must be fully declared upon arrival in India and will be subject to applicable customs duties as per the prevailing rules set by the authorities.
He emphasized that many travellers often misunderstand the distinction between jewellery allowances and investment-grade gold such as coins and bars. Jewellery brought within permitted limits may enjoy certain exemptions depending on eligibility criteria, but bullion products fall into a different category altogether and are treated strictly as taxable imports. Therefore, proper declaration at customs checkpoints is mandatory to ensure compliance and avoid penalties or confiscation.
In parallel, gold price movements between Dubai and India continue to highlight a noticeable price gap that influences buying behaviour among travellers. As of Monday evening, the international retail price of 24-karat gold in Dubai was recorded at approximately 547.25 United Arab Emirates dirhams per gram. When converted into Indian currency, this price difference becomes even more significant when compared to the domestic Indian market rate, where gold was trading at around ₹15,600 per gram, equivalent to roughly 595 dirhams. This disparity between the two markets has consistently encouraged cross-border gold purchases, particularly among Indian buyers visiting the UAE, where gold is often perceived as more competitively priced due to lower taxation structures and established bullion trading hubs.
The regulatory framework governing gold imports into India has also been updated under the Indian Customs Baggage Rules 2026. According to these latest provisions, passengers who have stayed outside India for more than one year are eligible for certain concessions when bringing gold jewellery into the country. Male passengers are allowed to carry up to 20 grams of gold jewellery duty-free, provided its total value does not exceed ₹50,000, which is approximately equivalent to 1,908 dirhams. Similarly, female passengers are permitted a higher allowance of up to 40 grams, with a value ceiling set at ₹100,000, or about 3,815 dirhams.
These allowances are specifically designed for personal jewellery items and are not intended to cover investment-grade gold such as bars or coins. Any quantity of gold exceeding these prescribed limits is subject to customs duty, which is calculated based on the revised import duty structure implemented by the government. This structure has been adjusted recently to reflect broader economic objectives, including the need to manage foreign exchange reserves and regulate the inflow of non-essential imports.
In essence, while travellers can bring limited amounts of personal jewellery without paying duties, any additional gold or bullion must be declared and taxed accordingly. Failure to comply with these rules can result in penalties, fines, or seizure of undeclared items at customs checkpoints. Authorities have been strict in enforcing these regulations to ensure transparency in gold imports and to prevent misuse of duty exemptions.
Meanwhile, global and regional demand trends for gold continue to show interesting shifts, particularly in investment-related segments. Data released by the World Gold Council for the first quarter of 2026 indicates that demand for gold coins and bars in the United Arab Emirates has increased significantly. The figures show a year-on-year rise of 27 per cent, with demand reaching approximately 4.0 tonnes, compared to 3.1 tonnes during the same period in the previous year. This sharp increase highlights growing investor interest in physical gold within the region.
According to the report, this surge in demand is being driven by both residents and tourists who are increasingly viewing gold as a stable investment option amid global economic uncertainty. Expectations of continued price appreciation have further encouraged buyers to enter the market, with many opting for bullion products rather than jewellery due to their purity and investment value. The UAE, particularly Dubai, continues to serve as a key global hub for gold trading, attracting buyers from across Asia, Europe, and Africa.
The World Gold Council also observed that demand patterns in India for gold bars, coins, and gold exchange-traded funds (ETFs) started the year 2026 on a relatively strong note. Investment interest in gold has remained resilient, supported by several macroeconomic factors including persistent geopolitical tensions, fluctuating currency markets, and limited attractiveness of alternative investment avenues. These conditions have made gold a preferred asset for wealth preservation among investors.
The report further suggests that the trend of shifting from jewellery purchases to investment-grade gold is likely to persist throughout 2026. As prices continue to move upward, many consumers are expected to prioritize gold coins and bars over traditional jewellery, as these forms typically carry lower making charges and reduced premiums compared to ornamental designs. This makes them more appealing from a purely financial investment perspective.
However, despite the strong performance in investment segments, the jewellery market in India has shown a contrasting trend. Gold jewellery demand in the country experienced a significant decline during the first quarter of 2026. According to the World Gold Council, consumption fell by 19 per cent, dropping from 81.6 tonnes in the first quarter of 2025 to approximately 66.1 tonnes in the corresponding period of 2026. This decline reflects changing consumer behaviour, influenced by rising prices and a shift towards more cost-efficient forms of gold ownership.
The Council further noted that a growing number of potential jewellery buyers in India appear to be redirecting their purchases toward gold bars and coins instead. One of the key reasons behind this shift is the lower premium associated with bullion products compared to jewellery, which typically includes additional costs such as craftsmanship charges, design expenses, and retail mark-ups. In contrast, bars and coins are priced closer to the actual market value of gold, making them more attractive for those focused on investment rather than aesthetics.
Overall, the combined data paints a broader picture of evolving gold consumption trends across India and the UAE. While regulatory changes in India continue to influence import behaviour and pricing dynamics, international demand patterns suggest a growing preference for gold as an investment asset rather than purely ornamental consumption. The widening price gap between markets like Dubai and India further reinforces cross-border buying activity, even as customs rules ensure that such transactions remain within legal and taxable frameworks.
