Budget 2026: Customs levy on personal imports halved to 10%; high-end electronic goods, apparel may see lower landed costs

Indian consumers shopping directly from global ecommerce platforms are set to get some relief at a time when the rupee is falling, as the budget has proposed to halve the customs duty on personal imports to 10%.

The government has also signalled higher duty-free allowances for Indians returning from overseas travel, potentially widening the benefit for frequent flyers and international shoppers.

The move could drop the landed cost of everything — from electronics to fashion — that customers import privately, mostly because they are unavailable in India or would be launched later, industry executives said.


The cut, effective April 1, is applicable to all dutiable goods imported for personal use, except cars, alcoholic beverages, tobacco products, printed books and items that need an import licence.

Personal imports into India are dominated by categories such as electronic gadgets, kitchen appliances, gaming accessories, cameras, car accessories, toys, sneakers, apparel, watches, gourmet food, beauty products and sporting goods.

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Most purchases are routed through overseas versions of platforms such as Amazon, eBay, Alibaba Group’s AliExpress, Temu and Desertcart, as well as the webstores of global retail chains and brands, primarily from the US, the UK and China.

Former Arvind Fashions managing director J Suresh said the duty cut would help a narrow segment of consumers seeking specific designs or early launches. “If someone wants a just-launched Armani jacket, this helps. But for mainstream fashion, most global brands are already available in India,” he said.

Deba Ghoshal, an electronics industry veteran and former marketing head at Voltas Ltd, said people import high-end appliances, gaming consoles and IT peripherals as many brands do not sell these products locally.

"The reduction of customs duty on personal imports from 20% to 10% in Budget 2026 is a positive step for Indian consumers who increasingly shop globally for products not easily available domestically. Ubuy, we see consistent demand for high-end electronics, apparel and niche international brands where duty plays a critical role in affordability. A lower landed cost will help make cross-border shopping more affordable, enhance price transparency and encourage compliant import behaviour, ultimately boosting choice and value for Indian shoppers," Dinesh Kumar, Director, Ubuy said.

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Consumers, however, remain cautious about the actual savings. Many global platforms collect import fees upfront, often well above statutory rates, citing uncertainty around customs assessments, they noted.

“Some platforms and sellers collect as much as 30-40% of the total product and freight cost as import fees deposit. And we are not aware of the exact duty paid. So, the import duty reduction may not lead to a substantial benefit,” said Anindya Banerjee, a frequent importer of products for personal use.

He said the duty is levied on the cost of the product, insurance and freight cost (CIF value).

Also, a new social welfare surcharge will partially offset the relief. The surcharge will be levied at 10% of the total customs duty payable, marginally reducing the net tax cut.

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Finance minister Nirmala Sitharaman also revealed a plan to overhaul baggage rules for international travellers to enhance duty-free allowances and clarify rules around temporary carriage of goods.

Indians returning from overseas travel excluding neighbouring countries such as Nepal, Bhutan and Myanmar are allowed to bring in goods worth up to Rs 50,000 duty-free. The budget has hiked this to Rs 75,000. However, it hasn’t increased the allowance for liquor, capped at 2 litres per passenger.