Union Budget 2025: What Becomes Cheaper and Costlier After Budget 2025-26

4 February, 2025

Synopsis

• FM Nirmala Sitharaman's Union Budget 2025-26 proposes strategic adjustments to customs duties, aiming to boost domestic manufacturing while ensuring essential items remain affordable.
• Electronics sector shows mixed changes: 28 mobile phone components and LED/TV parts become cheaper, while interactive flat panel displays face increased customs duty from 10% to 20%.
  
  

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, proposes significant changes to the pricing of various goods and services by revising customs duties. The government proposes strategically adjusting these duties to boost domestic manufacturing, enhance economic growth, and support middle-class welfare. While some products will see price reductions, others will become costlier due to increased import duties.

This article breaks down Budget 2025's impact on consumer and industrial products, highlighting what is becoming cheaper and what is becoming more expensive.

What’s Becoming Cheaper?

The budget brings welcome relief to consumers in several key sectors to make essential items more accessible while supporting domestic manufacturing capabilities.

Electronics and Mobile Goods

• Mobile Phone Components: Duty exemptions on 28 key components used in battery manufacturing will lower the cost of mobile phones and accessories.

• LED/LCD TVs: Reduced duties on open cells and essential components will make TV production more affordable.

• EV Batteries and Components: Lower duties on lithium-ion battery scrap, cobalt, and other essential materials will reduce the cost of electric vehicles, fostering wider EV adoption.
  
  

Medical Equipment and Life-Saving Drugs

• Life-Saving Drugs: Exemption from basic customs duty (BCD) on 36 essential medicines, including cancer drugs, will make critical healthcare more accessible.

• Medical Equipment: Various medical devices and tools will be exempted from BCD, leading to reduced prices for diagnostic and surgical equipment.
  
  

Agriculture and Marine Products

• Seafood Imports: Duty reductions on frozen fish paste and fish hydrolysate will lower the production costs of seafood-based products, promoting exports.
  
  

Industrial Raw Materials

• Raw Materials for Leather and Shipbuilding: Exemptions on wet blue leather and shipbuilding raw materials will support the leather industry and reduce shipbuilding costs.
  
  

What’s Becoming Costlier?

Several items will see price increases as the government raises import duties to protect and promote domestic industries. Here’s a list of items:

Electronics and Displays

• Interactive Flat Panel Displays: Customs duties on these displays have been increased from 10% to 20%, making large interactive screens costlier for businesses and consumers.
  
  

Textile and Apparel

• Knitted Fabrics: Customs duties on knitted fabrics have been increased, which could raise the cost of clothing and textile products. The hike aims to boost domestic textile production and promote technical textiles.

Luxury and Specialty Items

Several luxury and speciality items will see price hikes:

• Imported yachts and other vessels face higher customs duties

• Imported candles and tapers will become more expensive

• PVC products, including flex films and sheets, will see price increases
  
  

Complete List of Item Price Changes After Budget 2025-26

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, introduces significant changes to customs duties that will affect the prices of various goods and services. These strategic adjustments aim to boost domestic manufacturing while ensuring essential items remain affordable for consumers.
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Note: ↓ indicates price reduction, ↑ indicates price increase. All changes are based on Budget 2025-26 proposals and are subject to implementation.

The Union Budget 2025 reflects a strategic approach to balancing tax relief with economic growth. While sectors like electronics, healthcare, and agriculture will benefit from lower costs, others, such as textiles and high-end electronic displays, will face price hikes due to increased import duties. These measures align with the government’s long-term vision of boosting domestic production and reducing reliance on imports.


​​​​​​​*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.