In a significant move to modernize its customs regulations, the Indian government has announced a comprehensive update to passenger baggage rules, substantially increasing duty-free allowances for travelers. The revisions, introduced during the India Budget 2026 presentation by Finance Minister Nirmala Sitharaman, mark a substantial shift in the country’s approach to personal imports.
Under the new framework, female passengers returning to India can now carry up to 40 grams of gold jewelry without incurring customs charges, while other passengers are permitted up to 20 grams as part of their personal baggage allowance. This represents a meaningful liberalization of previous restrictions on precious metal imports.
The reforms extend beyond gold to encompass general goods allowances. Indian residents and tourists of Indian origin now benefit from a raised duty-free threshold of ₹75,000 (approximately Dh3,000), a 50% increase from the previous ₹50,000 limit. Foreign tourists similarly see their allowance elevated to ₹25,000 (Dh1,000) from the earlier ₹15,000 cap.
Complementing these changes, Minister Sitharaman announced a substantial reduction in tariff rates for dutiable goods imported for personal use, cutting the rate from 20% to 10%. This measure aims to rationalize the customs duty structure while reducing the financial burden on legitimate travelers.
Legal experts have welcomed these developments as a modernization of India’s duty-free framework. Nupur Maheshwari, executive partner at Lakshmikumaran and Sridharan attorneys, noted that the updated rules represent a significant step forward in aligning India’s customs procedures with contemporary travel patterns and economic realities, particularly through clarified transfer-of-residence benefits and updated threshold conditions.