The recent changes in India's customs and central excise duties, effective as of February 2026, have brought welcome news for international travelers and consumers engaging with global e-commerce platforms. The Union Budget 2026 has ushered in a series of revisions aimed at simplifying the tariff structure, boosting domestic manufacturing, and promoting export competitiveness. These changes promise to ease the financial burden on travelers and online shoppers, allowing for a bit more flexibility in their spending habits while abroad.

One of the most significant changes is the reduction of customs duty on goods imported for personal use, which has been halved from 20% to 10%. This move is expected to provide relief to Indian consumers who directly purchase items from global e-commerce platforms, especially at a time when the rupee's value is fluctuating. With the decreased duty, the landed cost of high-end electronic goods and apparel, among other items, may see a noticeable reduction, making them more accessible to the average consumer.

Furthermore, the budget includes an overhaul of baggage rules for international travelers, designed to enhance duty-free allowances and bring more clarity to the regulations surrounding the temporary carriage of goods. Previously, Indians returning from overseas (excluding neighboring countries like Nepal, Bhutan, and Myanmar) were allowed to bring in goods worth up to Rs 50,000 duty-free. The new regulations have increased this limit to Rs 75,000 for residents/tourists of Indian origin and eligible non-tourist visa holders arriving other than by land. However, it's important to note that this enhanced allowance does not extend to those arriving by land borders, who do not have any general duty-free allowances. The allowance for liquor remains capped at 2 liters per passenger.

In a significant move, the new baggage rules have also removed value caps on jewelry brought by returning residents and tourists of Indian origin. Instead, weight limits have been imposed, set at 40 grams for females and 20 grams for others, which reflects an adaptation to current travel trends and demands.

These revisions are part of the Indian government's broader economic reforms aimed at rationalizing tariffs, supporting domestic citizens and businesses, and simplifying the customs duty structure. Finance Minister Nirmala Sitharaman clarified that these changes are not linked to the policy decisions of the United States or any specific assessment of the impact of U.S. tariff hikes.

For travelers, these changes mean a greater opportunity to indulge in shopping while abroad without the heavy burden of hefty duties. For online shoppers, the reduced customs duty translates to potential savings on a wide array of imported goods. Overall, the duty relief measures introduced in the recent budget are poised to have a positive impact on both international travel and cross-border e-commerce, offering consumers greater financial flexibility and a more streamlined customs process.