Gina Dias (name changed) has been looking for a new range of skincare products from American brand Glossier for some time now. It remains unavailable in India, so she turns her attention to international e-commerce platforms such as ebay to get hold of it.
Consumers such as Dias have been on the rise in the country. And they have reason to cheer with the Union Budget 2026 cutting customs duty on goods imported for personal use by half – from 20% to 10% – reducing the cost burden in the process.
The move is expected to aid cross-border e-commerce, which is currently pegged at about $1 billion, according to e-commerce experts.
How are these products shipped?
These products are typically shipped into the country via post or courier, attracting both import duties and shipping charges. While the government has slapped an additional Social Welfare Surcharge, which works out to about 1%, taking the total rate of duty to 11% from 20% earlier, still experts say the overall move marks a shift in government thinking towards what they describe as “ease of living”.
“It marks a clear shift towards a more simplified, consumer-friendly customs regime,” Sukrit Kapoor, partner, King Stubb & Kasiva, Advocates and Attorneys, said.
Besides beauty products, clothing, footwear, fragrances, electronics items such as phones, high-end laptops, watches, cameras, accessories, toys, household, kitchen and food items, medicines and sporting goods are routinely imported for personal consumption, Kapoor says.
And she notes that as affluence, consumer awareness and digital adoption are growing, the propensity to import from abroad for personal use is growing.
What did Rajashri Dasgupta say?
Rajarshi Dasgupta, executive director, tax at AQUILAW, says the government has acknowledged evolving consumer behaviour including the rise of online purchases and cross-border e-commerce.
“However, specific items such as jewellery have historically been governed by additional duty rates and may still attract specific duties under the customs schedule,” Dasgupta said. Products such as alcohol, tobacco, cars, printed books and those requiring an import licence remain exempt from the relief, he says.
Similarly, consumers shopping abroad and bringing products via the baggage route through airports will continue to pay a 35% duty on these products whose value exceeds the Rs 75,000 threshold, experts said.
Still, Fahaz Ashraf, director & chief operating officer at Lulu Group India, told FE that the customs duty cut will help boost sales of cameras, electronics, and kitchen appliances in India. He added that imports of smartphones, laptops, and kitchen appliances, particularly from the United States, will likely become cheaper, but the final retail prices of the products are not likely to fall significantly due to a variety of logistics and handling costs.
“Importing smartphones and laptops is the most obvious choice (to get cheaper) due to their more favourable base price. But with headwinds in logistics existing, there will not be a massive drop in retail prices in India,” Ashraf said.
He also said that imports from West Asian countries and South-East Asian countries may see a sharp fall in prices, especially for items such as perfumes, clothing, gourmet foods, and beauty products.
Farhad Mohammed, managing director at AJFAN International Retail, told FE the cut in customs duty may affect prices of imported confectionery, perfumes, cosmetics, nuts & dates as costs to procure them will reduce. In particular, the price of imported chocolate may see a drop, he added.
