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Union Budget 2025: Know What Gets Cheaper, What Gets Costlier

Daily Equity - Union Budget 2025: Know What Gets Cheaper, What Gets Costlier

Life-saving drugs, EVs, and electronics get cheaper, while displays and fabrics see price hikes. Big wins for Make in India and green energy!

Finance Minister Nirmala Sitharaman’s Union Budget 2025 has introduced several changes to customs duties, making essential goods more affordable while increasing tariffs on select imported items. The move aims to boost domestic manufacturing, support critical industries, and promote economic self-reliance. Here’s a breakdown of what gets cheaper and what gets expensive under the latest budget reforms.

Also Read: Budget 2025: Everything You Need To Know

What Gets Cheaper?

1. Life-Saving Drugs
In a significant relief for patients battling severe illnesses, the government has fully exempted 36 life-saving drugs from basic customs duty. This includes essential medicines used for treating cancer and chronic diseases, making healthcare more accessible and affordable for millions.

2. Electronic Goods
The Finance Minister announced a reduction in basic customs duty to 5% for open cells and other components used in electronic goods manufacturing. This move is expected to lower production costs and boost the domestic electronics industry, leading to potential price reductions for consumers.

3. Electric Vehicles (EVs) and Mobile Phones
The government is pushing for cleaner transportation and improved technology accessibility by exempting several essential raw materials:
– 35 additional goods used in EV battery manufacturing will now be duty-free, making electric vehicles more affordable.
– 28 additional goods used in mobile phone battery production have also been added to the list of exempted capital goods, likely reducing smartphone production costs.

Additionally, cobalt powder, lithium-ion batteries, and 12 other critical minerals will also be exempted from basic customs duty, further strengthening India’s manufacturing ecosystem for green energy and electronics.

Also Read: Nil Tax on Two Homes Value: India’s Budget 2025 Simplifies Property Rules

4. Leather Products
Fashion enthusiasts will rejoice as leather jackets, shoes, belts, and purses will see price cuts, thanks to duty reductions. This move will make premium leather goods more affordable while supporting the domestic leather industry.

5. Shipbuilding Industry
The government has extended the exemption of basic customs duty on raw materials and components used for manufacturing ships for another 10 years. This long-term exemption is aimed at strengthening India’s shipbuilding industry, encouraging domestic production, and reducing reliance on imports.

6. Processed Foods and Marine Products
The basic customs duty on fish pasteurii has been slashed from 30% to just 5%, making seafood and processed fish products cheaper. Various marine products are also included in the exemption list, benefitting the fishing industry and seafood exporters.

7. LED Lights
To encourage energy efficiency, the government has reduced duties on LEDs, making energy-saving lighting solutions more affordable. This move aligns with India’s push for sustainability and green energy adoption.

8. Telecom and IT Infrastructure
Carrier-grade Ethernet switches have been added to the duty exemption list, facilitating cost-effective expansion of India’s telecom infrastructure. This measure is expected to benefit network providers and improve internet connectivity across the country.

Also Read: Budget 2025: Everything You Need To Know

What Gets Expensive?

1. Interactive Flat Panel Displays
The government has decided to increase the basic customs duty on interactive flat panel displays from 10% to 20%. This move is aimed at supporting domestic manufacturing, but it could make imported smart displays and touchscreen panels more expensive.

2. Knitted Fabrics
Customs duties on knitted fabrics have been increased, making certain clothing items and textiles costlier. This move supports the domestic textile industry by reducing competition from imported fabrics.

3. Flat Panel Displays
Apart from interactive displays, flat panel displays in general will also face increased duties. This could impact the prices of televisions, computer monitors, and other screen-based electronics that rely on imported panels.

Also Read: Budget 2025: Everything You Need To Know

Union Budget 2025: Know What Gets Cheaper, What Gets Costlier

Budget 2025: Everything You Need To Know

Daily Equity

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