- By Chetna Shree
- Mon, 02 Feb 2026 09:10 AM (IST)
- Source:JND
Budget 2026: In a big move to enhance the travel experience for international passengers, the government on Sunday, February 1, increased the limit for passengers bringing duty-free imported goods into India from Rs 50,000 to Rs 75,000. The new baggage rules are set to come into effect from February 2 midnight.
What Are The New Baggage Rules?
- Under the baggage rules, residents and tourists of Indian origin arriving by air or sea are allowed duty-free clearance of goods worth up to Rs 75,000, provided the items are "carried on the person or in bona fide accompanied baggage."
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- The new baggage rules replace a decade-old regulation, aiming to ease travel norms and align baggage rules with international travel and consumption.
- For foreign tourists arriving by air or sea, the duty-free allowance has been increased from Rs 15,000 to Rs 25,000.
- However, this does not apply to firearms or cartridges of firearms exceeding 50 units, cigarettes exceeding 100 sticks, cigars exceeding 25, tobacco exceeding 125 grams, alcohol in excess of 2 litres, gold or silver in any form other than ornaments, and televisions.
Budget 2026: New Custom Rules
In another big move, the Union Budget 2026-27 proposed to slash the basic customs duty on all goods imported for personal use from 20 per cent to 10 per cent.
In her ninth consecutive budget address on Sunday, February 1, Finance Minister Nirmala Sitharaman said, "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%."
The proposed reduction in customs duty from 20 per cent to 10 per cent will lower the cost of personal goods imported into India. This change will make items such as new smartphones and other electronics more affordable, particularly those bought from the United States due to their more favourable base prices for new product models released earlier there.
In addition to halving the basic customs duty on personal imports, the Union Budget 2026-27 proposed an exemption of basic customs duty on 17 life-saving cancer drugs.
"The Budget also proposes to add seven more rare diseases for the purposes of exempting import duties on personal imports of drugs, medicines and Food for Special Medical Purposes used in their treatment," the Finance Ministry said.