Finance Minister Nirmala Sitharaman presented her 8th Union Budget on February 1, unveiling a series of announcements aimed at easing the financial burden on taxpayers and boosting various sectors. The budget focused on enhancing purchasing power, providing relief to taxpayers, and promoting growth through strategic reforms. However, not all items saw a reduction in prices, with some set to become more expensive.
What Gets Cheaper?
Several essential items are expected to become more affordable due to exemptions and changes in customs duties:
- Medicines: A significant announcement was the exemption of 36 life-saving medicines, including cancer treatment drugs, from Basic Customs Duty (BCD), making them more affordable for the public.
- Battery and Electronics: Mobile batteries are set to get cheaper due to schemes aimed at supporting electronics production. This could also lead to a reduction in mobile phone prices.
- Electric Vehicles (EVs): The cost of lithium-ion batteries, crucial for EVs and other equipment, will drop due to reduced duties. As a result, EV prices are expected to decrease, making eco-friendly vehicles more accessible.
- Minerals: 12 essential minerals will become cheaper following a reduction in BCD, helping industries relying on these materials.
- Shipbuilding Materials: The government has granted a 10-year exemption on BCD for shipbuilding raw materials, driving down costs in the shipbuilding sector.
- Food and Lifestyle Items:
- Frozen fish paste and synthetic flavoring essences will be cheaper.
- Medicinal equipment will see a price drop.
- Leather products, particularly wet blue leather, will become more affordable as they are fully exempt from BCD.
What Gets Costlier?
While many items will see a price reduction, some products are set to become more expensive:
- Plastic Products: Plastic and plastic products, a key area of concern for sustainability, will see an increase in prices.
- Knitted Fabric: The cost of knitted fabric will rise, potentially making clothing items more expensive.
- Flat-Screen Televisions: Interactive flat-panel displays will incur higher duties, resulting in a price hike for flat-screen TVs.
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