Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26, outlining key priorities to accelerate economic growth, ensure inclusive development, support industries, and enhance household sentiment. The budget also emphasized increasing spending power for India’s growing middle class.
“Union Budget 2025-26 with an effort to a. Accelerate growth b. Secure inclusive development c. Invigorate society and industry d. Uplift household sentiment and e. Enhance spending on power of India’s rising middle class,” Sitharaman said while outlining her Budget focus.
Items that have become cheaper
- Mobile phones: 28 additional goods for mobile phone battery production to come in list of exempted capital goods.
- 36 Lifesaving drugs and medicines to be added to the list of medicines fully exempted from Basic Customs Duty.
- EV batteries
- Wet Blue leather
- Carrier-grade ethernet switches
- 12 Critical minerals
- Open cell
- LED/LCD
- Medical equipments
- Basic Customs Duty exempted on raw materials for manufacturing ships for another 10 years.
- Marine products
- Cobalt products
- Zinc, lithium-ion battery scrap
Items that have become costlier
- Flat panel display
- Knitted Fabrics
Last year, Sitharaman introduced cuts in customs duties on gold, silver, platinum, and several other items. Significant changes included reduced duties on mobile phones, cancer drugs, and certain minerals. However, the prices of telecom equipment and plastic products were set to rise due to higher duties.
The Budget comes in the backdrop of the GDP growth rate projected to fall to 4-year low of 6.4 percent in the current financial year, close to its decadal average.
The Economic Survey 2024-25 tabled by the finance minister in both Houses has estimated India’s GDP growing in the range of 6.3-6.8 percent in FY26, much lower than what is needed to become a developed country, and requires deregulation and reforms in areas like land and labour to stimulate growth.
(The list will be updated as more details come in)