India's New Baggage Rules: Higher Duty-Free Limits and Lower Customs Duties
The Indian government has implemented significant changes to baggage and customs regulations, offering substantial benefits to passengers and consumers. Under the newly notified Baggage Rules, 2026, which took effect on Monday, the duty-free allowance for goods brought into India has been substantially increased.
Enhanced Duty-Free Allowances for Passengers
The Finance Ministry announced that the limit for duty-free imported goods carried by passengers has been raised from Rs 50,000 to Rs 75,000. This applies to items "carried on the person or in his bona fide baggage" according to official statements. For foreign tourists entering India by air or sea, the limit has been elevated to Rs 25,000 from the previous Rs 15,000, though this enhancement does not apply to land border crossings.
However, important restrictions remain in place. The increased limits do not apply to several specific categories including firearms, cartridges exceeding 50 rounds, cigarettes beyond 100 sticks, cigars over 25 units, tobacco exceeding 125 grams, alcohol beyond 2 litres, gold or silver in non-ornament forms, and televisions. These items continue to face existing regulatory controls regardless of the new baggage value limits.
Customs Duty Reduction for Personal Imports
In a parallel move announced in the Union Budget for 2026-27, Finance Minister Nirmala Sitharaman proposed reducing the basic customs duty on all goods imported for personal use from 20% to 10%. "To rationalise the customs duty structure for goods imported for personal use, I propose to reduce the tariff rate on all dutiable goods imported for personal use from 20% to 10%", Sitharaman stated during her budget speech.
This reduction is expected to make various personal use items more affordable for Indian consumers, particularly electronic goods like smartphones and other devices. Products imported from markets like the United States, where new models often launch earlier and at more favorable base prices, could see noticeable price reductions as a result of this policy change.
Healthcare Benefits and Industry Response
The budget also includes significant healthcare provisions. The government has proposed exempting basic customs duty on 17 specific drugs and medicines, providing substantial relief to cancer patients. Additionally, seven more rare diseases have been added to the list qualifying for import duty exemptions on personal imports of drugs, medicines, and Food for Special Medical Purposes used in treatment.
Industry experts have welcomed these changes. Harsh Bhuta, Managing Partner at Bhuta Shah & Co., a chartered accountancy firm, noted that "reduction in duties on personal imports and exemption of critical cancer medicines directly lower household costs". These measures collectively represent a comprehensive approach to easing the financial burden on Indian households while streamlining customs procedures.
The combined effect of higher duty-free baggage allowances and reduced customs duties marks a significant shift in India's approach to personal imports, potentially making international travel more rewarding and imported goods more accessible to domestic consumers.
