Union Budget 2025-26: What’s Getting Cheaper and Costlier?

Union Budget 2025-26: Finance Minister Nirmala Sitharaman has announced key changes in customs duties and import tariffs in the Union Budget 2025-26, affecting the prices of various goods. Some items will become cheaper due to reduced tariffs, while others will become costlier due to increased duties. Here’s a detailed breakdown of what to expect. Also Read: Amit Shah openly praised general budget, read what the opposition said...

What’s Getting Cheaper?

The government has reduced basic customs duties (BCD) on several essential products to promote manufacturing, create jobs, and lower costs for consumers. Items that will become more affordable include: Cancer Drugs & Medical Equipment: The customs duty cut will make life-saving medicines more affordable for patients. Fish & Shrimp Feed: Aimed at boosting the fisheries industry, reduced duties will lower production costs for fish and shrimp farmers. Mobile Phone Chargers & Components: The government continues to support domestic mobile manufacturing by lowering import duties on key components. Critical Minerals & Battery Materials: The reduction in BCD on materials like cobalt powder, lithium-ion battery scrap, lead, and zinc will help the growth of the electric vehicle (EV) industry and clean energy solutions. Raw Materials for Ship Manufacturing: No increase in duties means the shipping industry will continue to benefit from previous exemptions.

What’s Getting Costlier?

Certain goods will see an increase in tariffs, making them more expensive for consumers: Luxury Goods & High-End Electronics: Import duties on premium products have been increased to encourage domestic production. Imported Automobiles & Components: Higher tariffs aim to push local automobile manufacturing and reduce reliance on imported parts. Select Consumer Goods: Some imported food items, cosmetics, and luxury accessories may see price hikes due to increased import taxes.

Government’s Aim with These Changes

The customs duty adjustments are part of the government’s long-term strategy to: Promote Make in India & Atmanirbhar Bharat Boost local manufacturing & job creation Encourage clean energy & EV industry growth Reduce reliance on imports & strengthen the economy The Budget 2025-26 focuses on economic growth, affordability, and self-reliance, ensuring that essential goods become cheaper, while non-essential luxury imports become costlier to support domestic production. Also Read: Union Budget 2025: Key Tax Announcements by Nirmala Sitharaman