Duty-free allowance raised: What travellers need to know about new baggage rules

The government has raised the duty-free allowance for passengers arriving in India under the new Customs Baggage Rules, 2026.

Announcing the change in her Budget speech, Finance Minister Nirmala Sitharaman said the existing framework needed an overhaul.

“I propose to revise provisions governing baggage clearance during international travel to address genuine concerns of passengers,” she said.

“The revised rules will enhance duty-free allowances in line with the present day travel realities and provide clarity in temporary carriage of goods brought in or taken out,” the minister added.

The Central Board of Indirect Taxes and Customs (CBIC) said the earlier Baggage Rules, notified in 2016, had become dated amid changes in economic conditions, prices of precious metals and the sharp rise in global mobility.

“As one of the largest economies, it is natural that India is more connected to the world,” the CBIC said, pointing to increasing overseas travel by professionals and a growing inflow of foreign entrepreneurs, skilled personnel and tourists.

What changes under new baggage rules

Under the Baggage Rules, 2026, residents, tourists of Indian origin and foreigners holding a valid visa other than a tourist visa will be entitled to a duty-free allowance of ₹75,000 when arriving in India by any mode other than land.

Tourists of foreign origin will be eligible for a lower allowance of ₹25,000, while crew members will be allowed duty-free clearance up to ₹2,500.

The CBIC clarified that “any passenger arriving in India, including an infant, is allowed duty-free clearance of used personal effects”.

Seeking to reduce disputes at airports, the rules rationalise definitions of personal effects, jewellery and long-term foreign professionals.

“Personal jewellery is explicitly included within personal effects,” the CBIC said, while noting that a separate category has been created for foreigners with valid non-tourist visas staying in India for extended periods.

Special jewellery allowances will now be based only on weight limits, removing earlier value caps that had become outdated.

In case of a resident or tourist of Indian origin residing abroad for more than 1 year, on return to India, shall be allowed duty-free clearance of jewellery up to a weight of 40 grams, if brought by a female passenger.

The limit will be 20 grams if brought by anyone other than a female passenger in bona fide baggage.