Finance Minister Nirmala Sitharaman, in her Union Budget 2026–27 speech, pushed the government’s Aatmanirbhar Bharat agenda with a series of duty and tariff changes aimed at boosting domestic manufacturing, supporting exports and providing relief to consumers and taxpayers.
A key feature of the Budget is the recalibration of customs duties, under which several essential and manufacturing-linked items are set to become cheaper, while select luxury and “sin” goods will attract higher taxes.
What Gets Cheaper
Under the Union Budget 2026–27, customs duty has been reduced on a range of products, including aircraft parts, microwave oven components, electric vehicle batteries, solar panels and essential medicines, making them cheaper for consumers and industry.
As many as 17 drugs, including medicines used for diabetes and cancer treatment, will see lower duties. Smartphones and tablets manufactured in India are also expected to become more affordable, while select imported personal-use items will attract reduced tariffs.
The Finance Minister also proposed duty-free imports of specified inputs to promote leather exports. The move is aimed at cushioning leather exporters facing the impact of steep US tariffs.
What Gets Costlier
Luxury watches and imported alcoholic beverages are among the items set to become more expensive following higher duties. Taxes on sin goods such as cigarettes, beedis, pan masala and gutka have also been increased.
The government has withdrawn duty exemptions on coffee roasting, brewing and vending machines, a move likely to push up their prices.
Some fertilisers are set to get costlier as exemptions on import fees for ammonium phosphate and ammonium nitro-phosphate—key inputs for manure and complex fertilisers—have been removed.
Imported television equipment, cameras and film-making gear, including photographic, filming and sound-recording equipment brought from overseas, will also attract higher duties, making them dearer.
Also Read: Fiscal Math and Tax Tweaks of Budget 2026 https://www.vibesofindia.com/fiscal-math-and-tax-tweaks-of-budget-2026/
