Budget 2026 Brings Big Relief For Air Travellers: Duty-Free Limit Raised To ₹75,000, Personal Imports Cheaper
Budget 2026 Brings Big Relief For Air Travellers: Duty-Free Limit Raised To ₹75,000, Personal Imports Cheaper
New baggage rules to take effect from April 1, customs duty on personal-use items cut to 10%
Air travellers and consumers importing goods for personal use are set to benefit from major relaxations announced in the Union Budget 2026–27. Under the new baggage rules, the duty-free allowance for passengers arriving in India has been increased from ₹50,000 to ₹75,000, offering significant relief to frequent international flyers. The revised rules will come into force from April 1, 2026.
Finance Minister Nirmala Sitharaman announced the changes while presenting the Union Budget on February 1, stating that the move is aimed at easing the tax burden on individuals and simplifying the customs duty structure for personal imports.
Under the new Baggage Rules, 2026, Indian passengers returning from abroad will now be able to bring goods worth up to ₹75,000 without paying any customs duty. Earlier, this limit stood at ₹50,000. The government has also extended relief to foreign tourists visiting India, who can now bring duty-free goods worth up to ₹25,000. Previously, the limit for foreign travellers was ₹15,000.
In another key announcement, the government has reduced the basic customs duty on goods imported for personal use from 20 per cent to 10 per cent — a 50 per cent cut in the tax rate. This reduction applies only to items imported strictly for personal consumption and not for commercial purposes. The finance minister said the objective behind this step is to make personal imports more affordable and to rationalise the duty framework.
The move is expected to directly benefit consumers who import smartphones, electronic gadgets and other personal-use items from abroad. New electronic products launched earlier in markets such as the US and other developed countries are likely to become cheaper for Indian buyers due to the lower customs duty.
The Budget also brings relief for those planning international travel. The government has significantly reduced taxes on foreign tour packages. Earlier, tour packages up to ₹10 lakh attracted a 5 per cent tax, while packages above that were taxed at 20 per cent. Under the new rules, this structure has been scrapped and replaced with a flat 2 per cent tax on foreign tour packages, making overseas travel more affordable.
Beyond travel and consumer goods, the Budget includes major announcements for the healthcare sector. The government has proposed to fully exempt 17 cancer medicines from basic customs duty, offering relief to patients facing high treatment costs. In addition, seven rare diseases have been added to categories where imported medicines and specialised medical food will attract zero customs duty.
According to the government, these measures are expected to reduce household expenses, support patients with serious illnesses, and provide tangible financial relief to travellers and consumers alike. With the new rules set to take effect from April, travellers are likely to see immediate benefits during the upcoming holiday season.
Disclaimer: This article is for general information only. Customs duty and baggage allowances are subject to official notifications and may vary based on individual circumstances and regulations.
