India has waived customs duty on 17 cancer drugs and eased baggage rules for international travellers as part of the Union Budget 2026-27, Finance Minister Nirmala Sitharaman said on Sunday.
Presenting the Budget, Sitharaman announced a shift to a “trust-based” customs regime aimed at simplifying procedures and reducing compliance costs. The reforms include a single-window system for cargo clearance, reduced verification for trusted importers with established supply chains, easier duty payment norms for Authorised Economic Operators (AEOs), and greater use of artificial intelligence in port scanning.
The Budget also proposes a reduction in customs duty on dutiable goods imported for personal use to 10 per cent from 20 per cent, excluding motor vehicles, alcohol and tobacco.
To facilitate trade, advance rulings on customs matters will be binding on authorities for five years, compared with three years at present. Sitharaman also said a Customs Integrated System (CIS) covering all customs processes will be rolled out within two years.
The customs warehousing framework will be revamped into a warehouse operator-centric system with self-declarations, electronic tracking and risk-based audits.
The Budget further proposes revisions to baggage clearance rules during international travel to address passenger concerns, including enhanced duty-free allowances in line with current travel patterns and clearer norms for temporary import and export of goods.
Currently, under the Baggage Rules, 2016, Indian residents and foreigners residing in India can bring duty-free goods worth up to Rs 50,000 when arriving from countries other than Nepal, Bhutan or Myanmar.
Sitharaman said the customs reforms are intended to simplify the tariff structure, support domestic manufacturing and boost export competitiveness.
