Budget 2026: Duty-free baggage limits to be increased, says FM Sitharaman

FM said the govt will revise baggage clearance rules and enhance duty-free allowances to reflect modern travel patterns and address passenger concerns over valuation and temporary carriage of goods

The government will increase limits on items that passengers can bring from abroad under duty-free allowances to align them with present-day travel realities, Finance Minister Nirmala Sitharaman said in her Budget 2026 speech on Sunday.

 

Under current Customs rules, international passengers are allowed to bring used personal effects, such as clothes, duty-free into India. In addition, Indian residents and foreigners residing in India can bring new goods worth up to ₹50,000 without paying Customs duty, while foreign tourists are allowed up to ₹15,000 worth of duty-free goods. These value limits are for each passenger and cannot be clubbed, and goods exceeding the threshold attract Customs duty at a flat rate.

 

 

There are item-specific limits, too. Passengers may bring up to two litres of alcohol, 100 cigarettes or 25 cigars or 125 grams of tobacco duty-free. One laptop for personal use is allowed over and above the general allowance. Travellers arriving from Nepal, Bhutan or Myanmar are subject to lower duty-free limits, and those entering India by land from these countries are generally permitted only used personal effects.

 

“I propose to revise provisions governing baggage clearance during international travel to address genuine concerns of passengers. The revised rules will enhance duty-free allowances in line with present-day travel realities and provide clarity in temporary carriage of goods brought in or taken out,” she said.

 

Temporary carriage of goods refers to items that passengers bring to India for temporary use and take them back, or take out of India and bring back, without selling them. These typically include laptops, cameras, professional equipment, musical instruments or tools carried for work or personal use. While such items are generally permitted, passengers often face uncertainty over valuation and duty applicability, which the proposed revision aims to address.