INDIA. In big news for India’s travel retail sector, the government has announced substantial increases in arrivals duty-free value allowances.
These include a +50% increase in the airport arrivals duty-free value allowance for international passengers who are residents or tourists of Indian origin, from INR50,000 (US$545) to INR75000 (US$820).
For foreign tourists the arrivals duty-free allowance has increased by +66.6% from INR15,000 (US$164) to INR25m000 (US$270).
Both increases have been made under revised Baggage Rules for 2026 and were revealed in today’s Union Budget.
The new value allowances (there are no changes to liquor volume allowances) are effective from Monday 2 February.
The Asia Pacific Travel Retail Association (APTRA) welcomed the news. APTRA President & Group Chief Executive, King Power Group (Hong Kong) Sunil Tuli said, “For several years, the duty free operators in India have made the case to the federal government to review allowances and APTRA has actively supported them in these efforts.
“Although we welcome today’s announcement as an encouraging step in the right direction, the industry believes there is further scope to increase allowances to a more realistic level comparable to other markets, simply by reflecting levels of currency devaluation and inflation increases since the last review in April 2016.
“The imperative to further increase India allowances is to unlock the full potential of India as one of the world’s fastest growing travel retail markets. In addition, an increase would support the contribution of non-aeronautical revenues to the achievement of government plans to increase the number of airports in India to over 400 by 2047, from 147 currently, and to handle 1 billion annual passengers by the same date. In tandem, the airline fleet is expected to almost triple to 2,000 within the next decade, making India the world’s third-largest aviation market.”
The theme of allowances will feature at the APTRA India Conference 2026 to be held at Bangalore International Airport from 25-27 March. Delegate registration is priced at US$600 and places can be booked here. ✈
