Union Budget 2026 has Good News and someTough News for both Businesses and Consumers.
Many essential items and important sectors will now cost less, making daily life and Business Operations easier.
At the same time, some products have become more Expensive to encourage Healthier Choices, support Indian manufacturers, and reduce Unnecessary Imports.
In this blog we will see a simple explanation of what becomes Cheaper, what becomes Costlier, and why these changes were made?
What Gets Cheaper: Relief for Consumers & Industry
The biggest relief comes in Healthcare.
- Seventeen Cancer Medicines and Seven Drugs for rare diseases are now exempt from basic Customs Duty, significantly reducing treatment Costs for families.
- Electronics and Daily-use products also see benefits.
Reduced duties on mobile phone components, batteries, and connectors can make Smartphones and Smart Devices 5–10% Cheaper.
Parts used in manufacturing Microwave Ovens are now Duty-free, which may lower appliance prices over time.
- The Leather and Footwear Industry gains through Duty-free Imports of key inputs like wet blue leather, potentially making Shoes and Bags 10–15% more affordable.
For the future-focused economy, EVs and lithium-ion battery Components remain Duty-free, supporting cleaner mobility.
- Consumers planning Foreign travel or Overseas Education also benefit, as Tax Collected at Source (TCS) has been reduced to 2%, easing Cash outflow.
Personal Imports brought from International trips now attract Lower duty, making Gadgets and apparel Cheaper.
What Gets Costlier: Discouraging Harm & Luxury Imports
- To curb Unhealthy Consumption, duties on Cigarettes and Tobacco products have Increased sharply, potentially raising prices by 10–20%.
- Imported Alcohol and Premium Wines become Costlier due to Higher Duties and TCS.
- Luxury imports like High-end watches, Cameras, Coffee Machines, and Gaming Consoles also see duty hikes, encouraging domestic Manufacturing.
- Stock market participants may feel a slight pinch as STT on Futures and Options has increased.
- Certain Fertilizers and Minerals lose exemptions, which may slightly impact agricultural input costs.
Manufacturing & MSMEs: Brief but Important Push
Beyond pricing, the Budget supports growth through Duty Exemptions on Aircraft Parts, Export-friendly Timelines, Trusted Importer Benefits, and Liquidity Support for MSMEs via TReDS and credit Guarantees.
Strengthening India’s production and export Ecosystem.
Budget 2026 makes Essentials Cheaper, Luxuries Costlier, and Growth more Sustainable, a clear signal of where India’s Economic priorities lie.
For more insights on GST reforms, Budget updates, and their impact on businesses….
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