In the Union Budget speech for 2026-2027, Finance Minister Nirmala Sitharaman gave a series of announcements that are expected to promote ‘Atmanirbharat’, boost the economy and bring relief to consumers and the common taxpayer.
One of the key highlights of the budget speech is a list of items that will become cheaper due to tax breaks, while some imports are set to become more expensive as the government removes exemptions or increases customs duties.
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The government reduced tariffs and tariffs on several products, including essential medicines, electric vehicles, and leather products, making them cheaper. On the other hand, luxury goods such as watches and alcoholic beverages will be more expensive and will attract more taxes.
List of cheaper products
Prime Minister Nirmala Sitharaman has announced that in the Union Budget 2026-2027, products including aircraft parts, microwave parts, essential medicines and some imported items will have reduced customs duties, thereby making them cheaper.
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The reduction in tariffs is expected to make products such as microwave ovens, EV batteries, solar panels, and aircraft parts cheaper.
Seventeen types of medicines, including drugs for diabetes and cancer patients, are also scheduled to become cheaper.
Additionally, smartphones and tablets made in India are also expected to become cheaper. Prices of some imported goods for personal use are also expected to fall due to the reduction in tariffs.
Sitharaman in her 2026 budget speechalso proposed duty-free import of certain specified inputs to boost the country’s leather exports. The move will provide a cushion to leather exporters who are bearing the brunt of the US’s 50% tariff.
Luxury watches, fertilizer prices rising
Items such as luxury watches and imported alcoholic beverages are expected to be more expensive. Sin items such as cigarettes, ‘beedis’, pan masala and gutka will also become expensive.
The government has also lifted exemptions for coffee roasting, brewing and vending, which could push coffee prices even higher.
Some fertilizers are also likely to become more expensive after the government removed the import fee exemption for imports of ammonium phosphate or ammonium nitrophosphate, which are used to make fertilizers and compound fertilizers.
Imported television equipment, cameras and other film equipment are also likely to be expensive. In addition, photography, filming, and recording equipment imported from overseas can also be expensive.