Budget 2026 Price Impact: What Gets Cheaper and What Turns Costlier

The Union Budget 2026, presented by Finance Minister Nirmala Sitharaman on February 1, places strong emphasis on strengthening domestic manufacturing while offering relief to the middle class. Through changes in customs duties, excise taxes, and cess structures, the government has reshaped prices across several key sectors.

Notably, Sitharaman became the first woman Finance Minister to present the Union Budget for the ninth consecutive time, marking a historic milestone.

Here’s a clear breakdown of items that will become cheaper and costlier following Budget 2026 announcements.

Items That Will Get Cheaper

Healthcare

• Several life-saving drugs will now cost less. The government has removed Basic Customs Duty (BCD) on seven critical cancer medicines. Additionally, drugs and food for special medical purposes (FSMP) for rare diseases—previously taxed at 5–11%—have been fully exempted.

Electronics

• Consumers can expect lower prices for mobile phones, tablets, solar panels, and microwave ovens as duties on key manufacturing components have been reduced or removed.

Travel

• Overseas spending has become more affordable with a uniform 2% tax rate, replacing the earlier structure that charged up to 20% beyond certain spending limits.

Foreign Education

• Studying abroad becomes cheaper as the TCS rate on education-related remittances under LRS has been reduced from 5% to 2%. No TCS will apply on remittances up to ₹10 lakh, and education loans remain fully exempt.

Green Energy

• Key materials such as lithium oxide, lithium hydroxide, and lithium carbonate are now duty-free. The concessional duty on lithium-ion cells has been extended for two more years, while solar glass production costs will fall due to exemptions on sodium antimonate.

Footwear

• Lower import duties on select raw materials will reduce costs for leather footwear and equipment manufacturers.

Nuclear Power

• Components for nuclear power projects will get cheaper as the zero-duty import window has been extended until 2035, covering all nuclear plants regardless of capacity.

Seafood

• Shrimp feed inputs will cost less due to reduced customs duty. Additionally, fish caught by Indian vessels in the EEZ or high seas will now be duty-free upon landing.

Textile Garments

• Textile apparel prices are expected to ease slightly, supported by productivity-focused incentives.

Items That Will Get Costlier

Tobacco Products

• Cigarettes, pan masala, and other tobacco items will become more expensive following a hike in excise duty and the introduction of a new cess.

Alcohol and Trading

• Alcohol prices are set to rise, while futures and options (F&O) trading will become costlier due to an increase in Securities Transaction Tax (STT).

Imported Personal Goods

• Certain personal-use imported items will attract higher customs duties, increasing retail prices.

Coffee Machines

• Coffee roasting, brewing, and vending machines will now cost more as earlier exemptions have been withdrawn.

Minerals and Coal

• A higher 2% TCS on minerals, including coal, lignite, and iron ore, up from 1%, will push prices higher.