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December 9, 2025 50

India’s Customs Overhaul Could Ease Gold Travel for UAE NRIs

<p><strong>UAE NRIs May Soon Find It Easier to Carry Gold Home</strong></p><p>For many UAE-based Indians, travelling home—especially during the wedding season—is inseparable from carrying gold jewellery. Gold is not just an asset; it is deeply tied to family traditions, celebrations, and cultural rituals. Yet, despite its emotional value, carrying gold to India often comes with anxiety, uncertainty, and uncomfortable customs checks at airports.</p><p>Now, signs from New Delhi suggest relief could be on the horizon. India’s Finance Minister Nirmala Sitharaman has indicated that a comprehensive overhaul of the customs system is being planned, raising expectations among non-resident Indians (NRIs) in the UAE that long-standing issues around gold allowances and airport checks may finally be addressed.</p><h3>Frustration with Outdated Rules</h3><p>UAE-based NRIs have long argued that India’s duty-free gold allowance rules are outdated and disconnected from today’s economic reality. While incomes, travel frequency, and gold prices have all risen sharply over the years, customs regulations have remained largely unchanged.</p><p>As Gulf News previously reported, many expats feel that the current system does not reflect modern travel patterns between the UAE and India. With millions travelling back and forth each year—often multiple times annually—manual checks and unclear interpretations of rules create confusion and stress, particularly for families carrying wedding jewellery.</p><p>This concern becomes more serious during peak wedding seasons, when travellers carry gold not for resale, but for personal, family, or ceremonial use. The fear of delays, penalties, or inconsistent treatment at customs counters often overshadows what should be a joyful trip home.</p><h3>India Signals a Full Customs Revamp</h3><p>Speaking at the Hindustan Times Leadership Summit, Finance Minister Nirmala Sitharaman made it clear that customs reform is now high on the government’s agenda. Describing customs as her “next big cleaning-up assignment,” she placed it alongside earlier reforms in areas such as income tax administration and the Goods and Services Tax (GST).</p><p>Her comments signal a shift in focus toward simplifying procedures, reducing ambiguity, and improving the overall experience for travellers and businesses alike. Importantly for NRIs, she noted that India generally aligns itself with standards recommended by the World Customs Organisation—suggesting future rules could become more transparent and internationally consistent.</p><p>For frequent travellers from the UAE, this could mean clearer guidelines, fewer discretionary checks, and a more predictable experience at Indian airports when carrying personal gold.</p><h3>Learning from Tax Reforms</h3><p>Sitharaman drew a direct comparison with earlier income tax reforms, openly acknowledging that the old system created fear rather than clarity. She referred to the term “tax terrorism” to describe how discretionary powers and unclear procedures once undermined public trust.</p><p>Reforms such as faceless assessments, reduced officer discretion, and more digital processes helped restore confidence in tax administration. According to Sitharaman, a similar approach is now needed in customs operations—particularly at airports and ports where travellers often feel vulnerable to inconsistent practices.</p><p>For NRIs, this comparison matters. It suggests that customs reform is not just about paperwork, but also about changing the tone of enforcement—from intimidating to facilitative—while still maintaining checks against smuggling and illegal trade.</p><h3>Technology May Play a Bigger Role</h3><p>Another key aspect of the proposed overhaul is the increased use of technology. Sitharaman hinted at greater reliance on full-body scanning, automated systems, and reduced face-to-face interactions between passengers and officers.</p><p>Such measures could significantly ease stress for law-abiding travellers. For someone carrying properly declared gold jewellery for personal use, a technology-driven system could eliminate subjective decision-making and make compliance more straightforward.</p><p>NRIs in the UAE, who often compare their experiences with smoother airport procedures in Gulf countries, see this as a much-needed step toward modernization in India’s customs infrastructure.</p><h3>What This Means for Gold-Carrying NRIs</h3><p>While no specific announcement has yet been made about increasing gold allowances or cutting duties, the direction of reform itself is encouraging. Any move toward simplified checks, clearer thresholds, or more uniform enforcement would directly benefit UAE-based Indians.</p><p>For many expats, the issue is not about avoiding tax but about certainty. Knowing exactly how much gold can be carried, what duty applies, and how it will be assessed at the airport would remove unnecessary tension from travel.</p><p>Given that UAE–India air routes are among the busiest in the world, even small improvements in customs procedures could positively impact millions of passengers each year.</p><h3>Economic Backdrop Supports Reform</h3><p>The push for customs reform comes amid broader economic developments in India. Although the rupee recently touched a temporary low against the US dollar, Sitharaman emphasized that exchange rates tend to stabilise over time and must be viewed in the context of long-term fundamentals.</p><p>The Reserve Bank of India has raised its GDP growth forecast for 2025–26 to 7.3 per cent and lowered its inflation outlook, citing strong agriculture, stable banking systems, GST reforms, and easing price pressures. This relatively strong economic environment gives the government more room to focus on structural reforms such as customs modernization.</p><h3>A Long-Awaited Change for UAE NRIs</h3><p>For UAE-based NRIs, the broader numbers matter less than the everyday experience at airports. A customs system that is transparent, technology-driven, and consistent would lift a heavy burden off millions of travellers—especially those carrying gold for weddings and family events.</p><p>If India’s planned customs overhaul delivers on its promises, taking gold home may finally feel routine instead of nerve-wracking. For expats who have waited years for change, the latest signals from New Delhi offer cautious but genuine optimism that relief may finally be on the way.</p>

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