Budget 2026: How India’s new baggage rules will be a boon for flyers

The Union Budget was presented on Sunday (February 1) with several big announcements for taxpayers. One such announcement was the duty-free baggage limits being increased.

During her Budget 2026 speech, Union Finance Minister Nirmala Sitharaman said that 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.

Here's a look at how this will affect passengers.

What are the new baggage rules?

Union Home Minister Nirmala Sitharaman announced that 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 during her speech while presenting the Budget.

Following her announcement, the Central Board of Indirect Taxes and Customs (CBIC) issued an official travel regulation by the introduction of the Baggage Rules, 2026, which directly supersede the Baggage Rules, 2016.

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Indian residents and tourists of Indian origin can now bring in goods worth up to Rs 75,000 duty-free, up from Rs 50,000. In another traveller-friendly move, the government has also cleared one new laptop or notebook for duty-free import by passengers aged 18 and above.

“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.

In a major relief for travellers, the Budget also proposed reducing customs duty on goods imported for personal use from 20 per cent to 10 per cent. The concession, however, will not apply to motor vehicles, alcohol, and tobacco. The duty-free allowance for foreign tourists arriving in India (other than infants) has been raised to Rs 25,000, from Rs 15,000 under the 2016 Baggage Rules.

Indian residents or tourists of Indian origin who have lived abroad for more than a year will be allowed to bring jewellery duty-free on their return to India, up to 40 grammes for female passengers and up to 20 grammes for other passengers, provided it is carried in bona fide baggage.

The new baggage rules will come into effect from midnight on February 2 and replace a decade-old baggage rule.

What other changes to expect this year?

In addition to revamping baggage rules, Sitharaman rolled out a “trust-based” customs system meant to make cargo clearances faster and cheaper. The move includes a single-window platform, fewer checks for trusted importers, and easier duty payments for Authorised Economic Operators, as reported by Times Now.

Sitharaman said honest taxpayers would be allowed to settle customs disputes by paying an additional amount instead of facing penalties. She also announced that advance rulings would be binding on customs authorities for five years, up from the current three-year period.

The Budget also proposed transforming the customs warehousing framework into a warehouse operator-centric system based on self-declaration, electronic tracking, and risk-based audits.

With inputs from agencies