The Union Budget 2025–26 reduces customs duties on life-saving drugs, electronics, EV and mobile phone battery components, cobalt, and leather goods, making them cheaper. It also extends customs duty exemptions for ship manufacturing materials and reduces duties on marine products, fish pasteurii, and LEDs. However, customs duties on interactive flat panel displays, knitted fabrics, and flat panel displays have been increased, leading to higher prices for these products.
NEW DELHI: The Union Budget for 2025–26, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Saturday, introduces various changes in customs duties that will affect the prices of several goods. Here’s a detailed look at what will become cheaper and what will become more expensive under the new budget proposals:
WHAT GETS CHEAPER
Life-Saving Drugs: The finance minister has fully exempted 36 life-saving drugs, which are crucial for the treatment of cancer and other chronic diseases, from basic customs duties. This move will help lower the cost of essential medicines for patients in need.
Electronic Goods: Sitharaman has announced a reduction in the basic customs duty on open cells and other components used in the manufacturing of electronic goods. The basic customs duty on these items has been lowered to 5%, which will help reduce the cost of electronics.
EV, Mobile Phones: The government will now exempt 35 additional goods used in the manufacturing of electric vehicle (EV) batteries and 28 more items used in mobile phone batteries from basic customs duty. This decision is expected to lower the production costs for these items, making them more affordable for consumers.
Cobalt Powder and Waste, Scrap, and Lithium-Ion Batteries: A total of 12 critical minerals, including cobalt powder, waste and scrap, and lithium-ion batteries, will also be exempted from basic customs duty. This exemption will benefit industries relying on these raw materials.
Leather Jackets, Shoes, Belt, Purse: The prices of leather goods such as jackets, shoes, belts, and purses are expected to come down due to changes in customs duties. This will likely make these items more affordable for consumers.
Government to Continue Exemption of Basic Custom Duty on Raw Material Components Used for Manufacturing of Ships for Another 10 Years: The government has decided to extend the customs duty exemption on raw material components used in shipbuilding for another decade. This will support the growth of the shipbuilding industry in the country.
The Finance Minister Has Also Reduced Basic Customs Duty to 5% from 30% on Fish Pasteurii: The reduction in basic customs duty on fish pasteurii from 30% to 5% will make fish-based products cheaper and more accessible.
Carrier-Grade Ethernet Switches: These products will also benefit from a reduced customs duty, helping to lower costs for businesses that depend on high-quality network equipment.
Marine Products: The customs duty on marine products has been reduced, making seafood products more affordable for consumers.
LED: The customs duty on LED products has been cut, helping to make energy-efficient lighting options more accessible to consumers.
WHAT GETS EXPENSIVE
Government to Increase Basic Customs Duty on Interactive Flat Panel Display to 20% from 10% : The basic customs duty on interactive flat panel displays has been increased from 10% to 20%. This will likely lead to higher prices for products that use these displays, such as digital signage and touchscreens.
Knitted Fabrics: The basic customs duty on knitted fabrics has been raised. This means that the cost of such fabrics, which are used in various clothing and textile products, may go up.
Flat Panel Display: The customs duty on flat panel displays has been increased, which will make products such as televisions and computer monitors more expensive for consumers.
Thus, the Union Budget 2025–26 brings mixed news for consumers, with some products becoming cheaper while others face price hikes. By exempting customs duties on life-saving drugs, electronic goods, and materials used in manufacturing EVs and mobile phones, the government aims to reduce the cost of essential and high-tech items. However, products like interactive flat panel displays, knitted fabrics, and flat panel displays will become more expensive due to increased customs duties.
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