Budget 2026: The Union Budget 2026, presented by Finance Minister Nirmala Sitharaman on February 1, focuses on boosting domestic manufacturing while offering some relief to the middle class. With this budget, Sitharaman also made history by becoming the first woman finance minister to present the Union Budget for the ninth consecutive time.
The government has adjusted customs and excise duties to reduce dependence on imports, encourage local production, and increase demand. Because of these changes, prices of some everyday items are expected to fall, while others may become more expensive in the coming months.
Budget 2026: What gets cheaper?
Several important items will get cheaper after Budget 2026. In the healthcare sector, 17 life-saving drugs used to treat serious illnesses such as cancer and diabetes will now cost less due to reduced duties. This move is expected to bring relief to patients and their families.
Electronics may also become more affordable. Components used to make mobile phones and tablets have received duty relief, which could help lower prices or at least slow down future price increases.
Green energy has been given a major push. Basic Customs Duty has been exempted on lithium-ion cells used in electric vehicle batteries. This step is expected to support the EV sector and make electric vehicles more affordable over time.
Travel-related expenses will also see some relief. The government has reduced Tax Collected at Source on overseas education, medical treatment abroad, and foreign tour packages, making international travel and remittances slightly cheaper.
The marine and footwear sectors also benefit, as the duty-free import limit for seafood processing inputs has been increased and similar relief has been extended to shoe upper exporters.
Budget 2026: What gets expensive?
On the other hand, some items will become costlier. Tobacco products such as cigarettes and pan masala will see a price hike due to higher excise duty and a new cess. Alcohol prices may also rise. Futures and options trading will become more expensive because of an increase in Securities Transaction Tax.
Additionally, exemptions have been removed on certain industrial machinery where domestic production is considered sufficient. Customs duty on some imported personal-use goods has also been revised, making them costlier.
