The Union Budget 2025-26 brought relief to the middle class and poor with several changes in income tax, customs duty, manufacturing, and duty-free inputs.

What gets cheaper?

Cancer drugs

With proposed exemptions and reductions in Basic Customs Duty (BCD) in the healthcare and manufacturing sectors, several essential products could become more affordable.

A total of 36 lifesaving drugs are included in the exempted list, while 6 medicines fall under the 5% duty category. Additionally, 37 medicines and 13 new patient assistance programmes are part of the exemption list.

So these lifesaving drugs and medicines are set to get cheaper.

Manufacturing sector

The government plans to fully exempt Basic Customs Duty on cobalt products, LEDs, zinc, lithium-ion battery scrap, and 12 other critical minerals to lower raw material costs for industries like electronics and battery manufacturing.

Make in India- exemption to open cell for LED/LCD TV looms for textiles, capital goods for lithium-ion batteries of mobile phones and Electric Vehicles.

Handicraft and leather products

The government will fully exempt wet blue leather from BCD, helping the leather industry by reducing input costs for manufacturers.

Export promotion – duty-free inputs for handicraft and leather sectors.

Shipbuilding raw materials

Exemption for 10 years on goods for shipbuilding and shipbreaking, an extension of time limit for export of railway goods imported for repairs.

Raw materials used for the manufacture of wired headsets, microphones and receivers, USB cables, etc., will be exempted from BCD.

Motorcycles with an engine capacity not exceeding 1600 CC will now have 40% BCD instead of the current 50%.

What gets costlier?

The BCD on knitted fabrics under specified tariff items will be raised from 10-20% to either 20% or ₹115 per kg, whichever is higher. 

Moreover, the government has proposed increasing the BCD on interactive flat panel displays from 10% to 20%. According to the finance minister, this adjustment aims to correct the inverted duty structure.

Also read:

Zero income tax till ₹12 lakh income under New Tax Regime, check details