India Gold Duty Hike: Can NRIs Bring Gold from UAE?
India’s recent increase in gold import duty has once again made buying gold in the UAE more attractive for Indian travellers and NRIs. However, travellers carrying gold coins or bars into India must follow customs regulations and declaration rules.
On May 13, the Indian government increased import duty on gold, silver, and precious metals from 6% to 15% in an effort to protect foreign exchange reserves. Following the move, jewellery retailers in Dubai reported a rise in demand as the price difference between the UAE and India widened further.
According to jewellers in Dubai, NRIs and Indian travellers are allowed to bring gold jewellery, coins, and bars from the UAE to India. However, gold coins and bars are not covered under the duty-free jewellery allowance and must be declared to Indian Customs upon arrival.
As per the latest Indian Customs Baggage Rules 2026, passengers who have stayed abroad for more than one year can bring limited quantities of gold jewellery duty-free:
- Male passengers: Up to 20 grams with a maximum value of ₹50,000
- Female passengers: Up to 40 grams with a maximum value of ₹1,00,000
Any gold exceeding these limits attracts customs duty under the revised import duty structure.
The demand for gold investment products is also rising sharply. According to the World Gold Council, UAE demand for gold bars and coins increased 27% year-on-year in the first quarter of 2026, reaching 4 tonnes compared to 3.1 tonnes during the same period last year.
The Council also noted that Indian demand for gold bars, coins, and ETFs started 2026 strongly, driven by price momentum, geopolitical uncertainty, and limited alternative investment options.
Meanwhile, gold jewellery demand in India declined by 19% in Q1 2026, falling from 81.6 tonnes last year to 66.1 tonnes this year. Industry experts believe many buyers are shifting towards gold bars and coins as they carry lower making charges and premiums compared to jewellery.
