On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2025-26, marking her eighth consecutive budget. This budget aims to address key areas such as agriculture, manufacturing, employment, and rural upliftment while providing tax relief to the middle class.

Here’s a comprehensive look at what items will become cheaper and what will see an increase in costs.

What Gets Cheaper

1. Mobile Phones:
   • Exempted Goods: 28 additional goods related to mobile phone battery production have been added to the list of exempted capital goods, making mobile devices more affordable.
2. Lifesaving Drugs:
   • Customs Duty Exemption: A total of 36 lifesaving drugs and medicines, including those for cancer and rare diseases, will be fully exempt from Basic Customs Duty (BCD), improving accessibility for patients.
3. Electric Vehicle (EV) Batteries:
   • Components for EV batteries are included in the exemptions, promoting the adoption of electric vehicles.
4. Wet Blue Leather:
   • This product is now fully exempt from BCD, benefiting the leather industry significantly.
5. Carrier-grade Ethernet Switches:
   • These essential components for networking will also see a reduction in costs due to duty exemptions.
6. Critical Minerals:
   • A total of 12 critical minerals, including cobalt products and lithium-ion battery scrap, are now exempt from BCD, supporting various manufacturing sectors.
7. Open Cells:
   • The BCD on open cells used in solar panels has been reduced to 5%, aiding the renewable energy sector.
8. Medical Equipment:
   • Various medical equipment will benefit from duty exemptions, making healthcare more affordable.
9. Shipbuilding Raw Materials:
   • The exemption on raw materials for ship manufacturing has been extended for another 10 years, supporting the maritime industry.
10. Marine Products:
    • Certain marine products are now included in the list of items with reduced duties.

What Gets Costlier

1. Flat Panel Displays:
   • The BCD on flat panel displays has increased from 10% to 20%, leading to higher prices for consumers in this category.
2. Knitted Fabrics:
   • This category is also set to see a price increase due to higher duties imposed on imports.

Economic Context

The budget comes amid projections of India’s GDP growth between 6.3% and 6.8% for FY26, according to the Economic Survey presented prior to the budget announcement. This fiscal plan aims to stimulate growth while ensuring fiscal discipline by targeting a reduction in the fiscal deficit from 4.9% of GDP in FY25 to 4.5% in FY26.

The Logical Indian’s Perspective

At The Logical Indian, we believe that every budget is not just a financial statement but an opportunity for fostering dialogue and understanding among diverse communities. The decisions made today have far-reaching implications on our collective future—encouraging kindness, empathy, and harmony within our society.

As we reflect on this budget’s impact on everyday lives, we encourage our readers to engage constructively with these changes. How do you feel about the adjustments made in this budget? What are your thoughts on how it might affect your community? Share your views and let’s foster a conversation that promotes positive social change together!