What Gets Cheaper and What Becomes Costlier After Budget 2026

In the Union Budget 2026-2027, Finance Minister Nirmala Sitharaman emphasized a push for ‘Aatmanirbhar Bharat’, introducing measures expected to boost the economy and provide relief to consumers and taxpayers. One of the major highlights of her Budget speech was the list of items that will become cheaper due to tax benefits, while certain imported goods are likely to become costlier following removal of exemptions or an increase in tariffs.

The government has reduced customs duties on several products, including essential drugs, electric vehicles (EVs), and leather products, making them more affordable. Conversely, luxury goods, such as watches and alcoholic beverages, are expected to attract higher taxes, increasing their prices.

What Will Become Cheaper

In the Budget 2026-27 speech, FM Nirmala Sitharaman announced lower customs duties on products such as aircraft parts, microwave components, essential drugs, and certain imported goods, reducing costs for consumers and businesses.

Key items set to become cheaper include:

• Microwave ovens, EV batteries, solar panels, and aircraft parts due to reduced tariffs.

• Seventeen essential drugs, including treatments for diabetes and cancer.

• Sports equipment, which received additional support in this year’s Budget.

• Smartphones and tablets manufactured in India.

• Certain imported items for personal use will also see price drops.
  

Additionally, the Budget proposed duty-free imports of specified inputs for leather exports, offering relief to Indian leather exporters facing a 50% US tariff.

What Will Become Costlier

Several items are set to become more expensive following Budget 2026 announcements:

• Luxury watches and imported alcohol.

• Sin goods, such as cigarettes, beedis, pan masala, and gutka.

• Coffee roasting, brewing, and vending machines, due to the removal of prior exemptions.

• Certain fertilisers, including Ammonium phosphate and ammonium nitro-phosphate, used in manure and complex fertilisers.

• Imported television equipment, cameras, and filming/photographic/sound recording equipment.
  

The increase in customs duties and removal of exemptions for these products is expected to raise their retail prices for consumers.