Indian Duty Free harnessing the power of passenger growth and better shopping policies

The new Indian travel retail and duty free market is taking shape, with growth driven by a growing demand for experience and lifestyle products from younger shoppers.

Increased connectivity to Tier 2 and 3 cities, alongside the growth of airline fleets and airport infrastructure in the country, is being supported by government initiatives which are unlocking new markets. This includes the development of non-metro airports, which now account for 40% of total passenger traffic in India.

Most Indian travellers flying in from abroad are not making the most of a key benefit: the ₹50,000 duty-free shopping allowance on arrival. Ospree Duty Free, the arrivals retail experience at Mumbai International Airport, is on a mission to change that with a new campaign that shows passengers how to unlock more value across a wider range of categories.

Under customs rules, passengers can shop up to ₹25,000 in Indian currency and ₹25,000 in foreign currency or via an international card. This totals ₹50,000 in permitted duty-free shopping. However, most passengers end up using only a small portion of that, often stopping after picking up just two litres of liquor from the Duty Free Arrival store on the way back from their international travel.

Ospree’s newly revamped arrivals store has been designed to help travellers build complete baskets that stay within the ₹50,000 threshold. The assortment has been intentionally designed for smart, value-based purchasing, with categories that include: Perfumes and Cosmetics, with curated fragrance and beauty gifting; Watches and Fashion Accessories, including luxury labels and bundled savings; Confectionery and Premium Gifting, perfect for families and festive shopping and Seasonal and Travel Retail Exclusives, refreshed regularly for variety

Whether shopping for a signature scent, a pair of designer sunglasses, or a box of premium chocolates, passengers can create a well-rounded cart that maximises savings without breaching the duty-free cap.

To support smarter shopping, Ospree runs arrival-exclusive promotions across all major categories, many of which are funded directly by participating brands. Highlights include:

Liquor: Signature malts and crowd favourites come with value-driven offers. Glenlivet, Dewar’s, and Johnnie Walker loyalists can save up to 20 percent, while brands like Celtic Reserve and Chivas offer attractive combo deals.

Perfumes and Cosmetics: Travellers can enjoy tiered discounts on select brands. Buying two items gets 10 percent off, while adding a third increases the offer to 15 percent.

Fashion: Select fashion labels offer flat 20 percent off, while Swarovski and Michael Kors provide promotional pricing on bundled products. Fashion watches are part of arrivals-only pricing, with 18 percent off on select styles. Other brands available include Tissot, Seiko, Balmain, Emporio Armani, Fossil, Kenneth Cole, Police, Guess, Cerruti 1881, and Casio.

Electronics: Electronics are available at retail selling price, which often beats local rates, especially for last-minute gadgets and travel accessories. Premium products like AirPods Pro 2 magsafe, AirPods Max, and Bang & Olufsen speakers are also part of Ospree’s arrivals-exclusive offerings.

Sunglasses: Ray-Ban sunglasses are a popular pick among returning travellers, made more attractive by limited-time arrival-only pricing.

Confectionery: Travellers can shop international chocolate and confectionery brands at bundle pricing, ideal for gifts or restocking favourites.

For families, the value adds up quickly. With ₹50,000 allowed per adult passenger, a group of four can legally shop for up to ₹2,00,000 worth of goods (With ₹50,000 quota for each passenger). Ospree’s curated range, refreshed store experience, and strategic brand tie-ups turn arrivals shopping into a smarter, better-planned part of the travel journey. Whether returning from a work trip or an overseas holiday, the most valuable retail stop may be the one waiting for you after you land.

“Most passengers don’t realise they’re only using a fraction of what’s legally allowed,” said a spokesperson for Ospree Duty Free. “This campaign is about enabling informed choices and repositioning arrival duty-free as a planned shopping moment rather than a last-minute liquor stop.”

India is the fastest growing travel market in South Asia and the country is on track to hit 52 million travellers by 2029. This growth is reflected in the expectation that India’s duty-free sector will double in size during the same period.

The demand for a new style of travel retail offer is being driven by the emergence of a new type of traveller in the Indian travel retail and duty free sector. Gen Z and Millennial travellers now dominate the country’s outbound travel market, accounting for 63% of all travellers, with a focus on experiential trips, alongside leisure and family visits. The latter category now accounts for 42% of all Indian outbound travel, according to Aggarwal.