Budget 2025: List of items that are cheaper, costlier

Delhi: Finance Minister Nirmala Sitharaman has presented her eighth consecutive Union Budget for the fiscal year 2025-2026, marking an important milestone in the Modi 3.0 government’s tenure after securing re-election in the 2024 Lok Sabha elections. The budget is a comprehensive package that focuses on ten crucial areas, including agriculture, manufacturing, employment, MSMEs, rural upliftment, and innovation. In her budget speech, Sitharaman emphasized, "This budget aims to work on transformative reforms," aiming to drive economic change and growth.

Cheaper items: Relief for consumers

Several key items are set to become more affordable in Budget 2025, offering relief to consumers, especially in healthcare. The government has proposed a reduction in the price of 36 life-saving cancer drugs and medicines for rare diseases. These will now be exempt from Basic Customs Duty, making essential treatments more accessible to patients. Additionally, 37 more medicines will be exempted from Basic Customs Duty, further easing the financial burden on the healthcare sector.

To bolster the country’s manufacturing capabilities, the Centre has proposed exemptions on several raw materials. Notably, cobalt products, LED components, lithium-ion battery scrap, and 12 critical minerals will be completely exempt from Basic Customs Duty. Moreover, the exemption on raw materials for ship manufacturing will continue for another decade, fostering growth in the maritime sector.

In a bid to support the handicraft sector, the government will introduce a scheme to further boost handicraft exports. Wet blue leather will also see a full exemption from Basic Customs Duty, encouraging growth in the leather industry.

Costlier items: Affected by duty hikes

However, some products will become more expensive due to changes in customs duties. The government proposed increasing the Basic Customs Duty on interactive flat panel displays to 20% from the previous 10%. This change aims to correct the inverted duty structure, ensuring domestic manufacturing has a competitive edge. Additionally, the budget introduces a two-year time limit for provisional assessments.

Last year, the Union Budget brought price reductions on items such as mobile phones, gold, silver, and copper. In 2024, the government also raised customs duties on non-biodegradable plastics to 25% and increased the duty on certain telecom equipment from 10% to 15%.

A balanced approach for growth and sustainability

Overall, Budget 2025 presents a balanced approach to economic growth, focusing on both consumer welfare and industrial progress. While certain sectors will experience price hikes due to duty increases, essential goods and materials critical for development have seen reductions, aligning with the government’s broader vision of sustainable economic reform.