Budget 2025: What Gets Cheaper, What Gets Costlier

Finance Minister Nirmala Sitharaman presented the Union Budget 2025–26 in the Lok Sabha on Saturday. She has proposed to exempt customs duty on life-saving drugs and goods used in the manufacturing of EV batteries, which will reduce the prices.

Here is a list of what will get cheaper and what will get expensive with the budget announcements coming into effect:

• Life-Saving Drugs: The FM has fully exempted 36 life-saving drugs used for cancer and chronic disease medicines from basic customs duties. This measure will reduce the financial burden on patients and improve access to life-saving medicines.

• Medicine: In addition, 37 medicines will also be exempt from basic customs duty, offering further relief to the medicine sector.

• Electronic Goods: In the budget, Sitharaman announced a reduction of the basic customs duty to 5% for open cells and other components.

• Headphones: The raw materials used to produce wired headsets, microphone and USB cables will be exempted from basic customs duty.

• EV Vehicles: 35 additional goods used in the manufacturing of EV batteries will also be added to exempted capital goods.

• Mobile Phones: 28 additional goods used in mobile phone batteries will also be added to exempted capital goods.

• Critical minerals exemption: Cobalt powder and waste, scrap and lithium-ion batteries and 12 other critical minerals will also be exempted from basic customs duty.

• Leather products: The government will fully exempt wet blue leather from basic customs duty. This will help the industry reduce input costs for manufacturers and reduce the cost of jackets, shoes, belts, and purses.

• Shipbuilding raw material: The government is to continue the exemption of basic customs duty on raw material components used for the manufacturing of ships for another 10 years.

• Fish Pasteurii: The finance minister has also reduced basic customs duty to 5% from 30% on fish pasteurii, making it more affordable for processing and distribution and, in turn, helping the food and agriculture sector.

• Handicraft exports: The government has announced a scheme to promote handicraft globally, making it more competitive.

• Carrier-grade ethernet switches: The custom duty on the ethernet switches has been reduced to 10% from the earlier 20%.

• Marine products: The basic customs duty on fish hydrolysate for the manufacture of aquatic feed has been reduced to 5% from the earlier 15%.

• LED.

• Motorcycles: The basic customs duty on motorcycles with an engine capacity not exceeding 1,600 cc will be reduced to 40% from the current 50%.

• Knitted fabrics: The basic customs duty on knitted fabrics will be increased from 10-20% to 20% or Rs 115 per kg, whichever is higher.

• TVs: The basic customs duty on flat panel displays will be increased from 10% to 20%, impacting TVs. The move is to address the inverted duty structure and help level the playing field for domestic manufacturers of such products.

• Social welfare surcharge: 82 tariff lines currently under cess received exemption.