Budget slashes import duty on personal-use goods to 10%

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Finance minister Nirmala Sitharaman halved the tariff on dutiable imported goods for personal use to 10 percent in her Budget for 2026-27 presented on February 1.

The move will ease cost burden on individuals and international travellers importing items for personal consumption in the current tariff situation.

The reduction is expected to benefit returning Indians, tourists and overseas Indians bringing in consumer electronics, personal accessories and other dutiable goods within permissible limits.

"The reduction of duty rates on all dutiable goods imported for personal use from 20 percent to 10 percent is a positive step to boost consumption, while duty-free imports of specified inputs for leather and textile garments signal a renewed manufacturing push aligned with global demand and quality standards," said  Dibyanshu Tripathi, CEO & CoFounder of Hexalog.

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Among the popular items are electronics & gadgets such as high-end mobiles (particularly iPhones), laptops, tablets, and smartwatches. US-based products are especially sought after due to lower base pricing and earlier release dates for new models.

Branded clothing, designer handbags and footwear from international labels (such as Nike, Levi's, Ralph Lauren) are top choices as well. Gen Z and millennial consumers are the primary drivers of this demand, often shopping through global e-commerce platforms.