Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 with a strong emphasis on strengthening domestic manufacturing and improving access to essential healthcare. A key highlight of the budget is the rationalisation of the customs duty structure, aimed at phasing out long-standing exemptions on products now manufactured within India.
At the same time, the government has extended targeted relief to priority sectors such as electronics, marine exports, leather, textiles, and pharmaceuticals to reduce production costs and boost global competitiveness.
What Gets Cheaper?
Several goods are expected to become more affordable due to reductions in Basic Customs Duty (BCD) and expanded tax exemptions. These measures are designed to lower input costs, encourage local manufacturing, and provide direct relief to consumers.
What Gets Costlier?
To support the Make in India initiative, the government has withdrawn exemptions on select items where domestic manufacturing capacity is now adequate. Additionally, higher duties on tobacco products aim to curb consumption while increasing revenue.
Union Budget 2026: What Gets Cheaper, What Gets Costlier
Category
Item
Impact
Budget Change
Why It Matters
Healthcare
Diabetes & cancer medicines (17 life-saving drugs)
Cheaper
Customs duty relief
Lowers treatment costs and improves access to critical medicines
Electronics
Mobile phones
Cheaper
Duty cuts on components and capital goods
Reduces manufacturing costs, potential price drop for consumers
Electric Vehicles
EV batteries (Li-ion cells)
Cheaper
Basic customs duty exempted
Makes EVs more affordable and supports green mobility
Aviation
Civilian aircraft parts
Cheaper
BCD exemption
Supports domestic aircraft manufacturing
Defence
Aircraft MRO raw materials
Cheaper
Customs duty exemption
Strengthens defence self-reliance
Personal Imports
Goods imported for personal use
Cheaper
Duty cut from 20% to 10%
Direct price relief for individuals
Leather & Textiles
Leather products and textile inputs
Cheaper
Duty cuts on raw materials
Lowers cost of footwear, apparel, and boosts exports
Marine Exports
Seafood processing inputs
Cheaper
Duty-free limit raised to 3% of FOB value
Enhances export competitiveness
Sports Goods
Sports equipment
Cheaper
Duty rationalisation
Makes sports equipment more affordable
Manufactured Imports
Items now made in India
Costlier
Customs exemptions withdrawn
Protects domestic manufacturers
Industry
Select industrial machinery
Costlier
Tariff restructuring
May increase equipment costs
Tobacco
Cigarettes, pan masala, other tobacco products
Costlier
Higher excise duty and health cess
Discourages consumption and boosts revenue
👉 Click here to read the latest Gujarat news on TheLiveAhmedabad.com