New Delhi: In a bid to reshape the economic landscape and set a clear roadmap for growth, Union Finance Minister Nirmala Sitharaman today unveiled the Union Budget for the fiscal year 2025-26. The much-anticipated budget session, which commenced on January 31, introduced significant reforms aimed at boosting infrastructure, revamping the tax system, and ensuring macroeconomic stability.
The fiscal blueprint for 2025-26 lists several everyday goods and services set to become more affordable, while others will see a price increase. These changes are expected to impact both consumers and industries as the government strives to balance growth and fiscal discipline.
Budget 2025: Here’s what is set to get cheaper
The government has rolled out new measures aimed at reducing the cost of several products and materials:
- Cancer and Rare Disease Medications: A total of 36 drugs used for cancer treatment and rare diseases will be exempt from Basic Customs Duty.
- Medicines: An additional 37 medicines will benefit from the exemption of Basic Customs Duty.
- Fish Pasteurii: The Basic Customs Duty on fish pasteurii will be slashed from 30% to 5%.
- Fish Hydrolysate: The duty on fish hydrolysate, used in producing aquatic feed, will drop from 15% to 5%.
- Chemical Compounds: Basic Customs Duty on certain chemical compounds, including those with pyrimidine or piperazine rings, will be reduced from 10% to 7.5%.
- Synthetic Flavouring Essences: The Basic Customs Duty on synthetic flavorings and mixtures for the food and beverage industries will decrease from 100% to 20%.
- Cobalt Products & Critical Minerals: The government has proposed the full exemption of items such as cobalt, LED components, zinc, lithium-ion battery scrap, and 12 critical minerals from Basic Customs Duty.
- Platinum Findings: The Basic Customs Duty on platinum findings will be reduced from 25% to 6.4%.
- Ship Manufacturing Materials: Raw materials used in shipbuilding will remain exempt from Basic Customs Duty for the next 10 years.
- Handicraft Exports: A new initiative has been introduced to promote the export of handicrafts.
- Wet Blue Leather: The Basic Customs Duty on wet blue leather has been fully exempted.
- Technology Components: Raw materials used for manufacturing products like wired headsets, microphones, and USB cables will also see a waiver of Basic Customs Duty.
- Ethernet Switches: The duty on carrier-grade ethernet switches will be reduced from 20% to 10%.
- Motorcycles: The Basic Customs Duty on motorcycles with an engine capacity of up to 1600cc will be lowered from 50% to 40%. Motorcycles exceeding 1600cc will also see a duty reduction from 50% to 30%.
- Crust Leather: Export duties on crust leather, including hides and skins, will be reduced from 20% to 0%.
Budget 2025: Items that are set to get costlier
- Knitted Fabrics: The Basic Customs Duty on some knitted fabrics will rise from 10-20% to 20%, or ₹115 per kilogram, whichever is higher.
- Interactive Flat Panel Displays: The Basic Customs Duty on interactive flat panel displays will increase from 10% to 20%, aiming to address the inverted duty structure.
- Provisional Assessment Time Limit: The government has proposed a two-year time limit for provisional assessments in customs procedures.
What’s Costlier & What’s Cheaper in Union Budget 2025: India’s Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, introduces key reforms, including reduced customs duties on essential goods like medicines and technology components. However, some items like knitted fabrics and interactive displays will see price hikes. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
