Union Budget 2026: What's cheaper, what's costlier for consumers, industry?

Finance Minister Nirmala Sitharaman said customs duty exemptions in Union Budget 2026 aim to simplify tax rates, support domestic manufacturing, boost exports and remove redundant exemptions

Union Finance Minister Nirmala Sitharaman on Sunday presented the Union Budget for the financial year 2026–27 (FY27), marking her ninth consecutive Budget. The finance minister proposed several exemptions on customs duties across sectors, including critical minerals, nuclear energy, batteries, electronics, defence and aviation, among others. 

Sitharaman said that these exemptions are aimed at simplifying tax rates, supporting domestic manufacturing, boosting exports, and removing old duty exemptions that are no longer needed. The latest exemptions are likely to make several products cheaper for consumers and the industry.

Union Budget 2026: Which items will become cheaper?

Sitharaman announced that duty on goods imported for personal use will be halved from 20 per cent to 10 per cent, while patients will get relief as basic customs duty has been removed on 17 cancer drugs.

 

To drive manufacturing, duties are being cut on select electronic parts too. Special Economic Zones units will get one-time relief to sell limited output in the domestic market at lower rates, and biogas will be excluded from excise calculations on biogas-blended compressed natural gas (CNG). 

Budget 2026: Items that will cost less 

• Solar panels
• Personal-use items
• 17 cancer drugs
• Seven rare disease drugs
• Electric vehicle batteries
• Aircraft components
• Sports equipment
• Smartphones
• Leather products
• Microwave ovens
• Lithium battery components

Union Budget 2026: What will become costlier?

While numerous essential products will experience a reduction or exemption in customs duties, certain goods, particularly among luxury and imported products, will see higher costs.

 

Sitharaman also added that exemptions on items that are now made in India or rarely imported will be withdrawn. "To continue weeding out long continuing customs duty exemptions, I propose to remove certain exemptions on items which are being manufactured in India or where the imports are negligible," she said.

 

According to the Union Budget 2026, the government has withdrawn duty exemptions on coffee roasting, brewing and vending machines. As a result, imported coffee machines will become more expensive, whether used at cafés or at home. 

 

Additionally, fertilisers are also likely to become costlier. The government has ended import duty exemptions on chemicals such as ammonium phosphate and ammonium nitrophosphate, which are used to make fertilisers and complex fertilisers.

 

Television equipment, cameras and other filmmaking gear imported from abroad will also attract higher taxes.