Union Budget 2026: What Gets Cheaper and Costlier After Budget Announcements

Finance Minister Nirmala Sitharaman presented the 9th consecutive Union Budget on February 1, 2026. The presented budget reveals that the government is heavily focusing on Atmanirbhar Bharat (Self-Reliant India) by slashing duties on manufacturing components and essential healthcare. In addition to that, they will increase the taxes on luxury and “sin” goods. Here’s what got cheaper and what became costlier.

What Gets Cheaper with the Union Budget 2026?

The Union Budget 2026 focuses on boosting domestic manufacturing and easing the burden on the middle class. Here are the things that got cheaper: – 

Essential Medicines

Basic Customs Duty (BCD) has been fully exempted for 17 cancer drugs. Additionally, medicines and special food for 7 rare diseases are now duty-free, which previously had a 5-11% duty.

Electronics & Home Appliances

Mobile phones & tablets will get cheaper, as duties on specific components like connectors, PCBA, and battery covers will be reduced to boost local assembly.

In the case of microwave ovens, BCD on specific manufacturing parts was removed, which will lower the production costs.

Also Read: Baramulla Hit by 4.7 Magnitude Earthquake, Tremors Felt Across Kashmir

Travel & Education

Foreign trips just became cheaper with the Tax Collected at Source (TCS) on overseas tour packages being slashed to 2% (down from a 5–20% range).

TCS on remittances for foreign education and medical treatment is now capped at 2%, a great relief for students studying abroad. Additionally, the  duty on imports for personal use is halved (from 20% to 10%)

Green Energy

Solar panels and EV batteries will get cheaper due to duty cuts on solar glass inputs and lithium-ion cell manufacturing capital goods.

Duty-free import limits for shrimp feed and leather (shoe uppers) increased to support exporters in the Union Budget 2026.

Also Read: Union Budget 2026: Date, Process, Importance, and Key Facts Explained

What Becomes Costlier with Union Budget 2026?

Continuing the trend of increased tax on Tobacco, the government has targeted the same this year as well. Along with that, alcohol, non-essential items, and speculative market activities also got costlier. 

Sin Goods (Tobacco and Alcohol)

Prices for cigarettes, beedis, pan masala, and gutkha will rise due to a hike in the National Calamity Contingent Duty (NCCD).

Imported alcohol will get costlier due to duty hikes on premium spirits and wines. Luxury watches and high-end cameras will also experience a price hike. 

Trading

Transactions in Futures and Options (F&O) will become expensive with the increased Securities Transaction Tax (STT).

Household Items

Everyday household items like coffee machines, umbrellas, and fertilizers also became costly. Notably, coffee machines were exempted from these, but that has been removed in the Union Budget 2026. 

Low-cost umbrellas will have minimum duties, and fertilisers will see a price hike due to the removal of import fee exemptions on Ammonium Phosphate.

Tech

Basic customs duty on cash dispensers and their parts has been increased, so ATMs will be impacted. Parts for e-readers and educational CD-ROMs saw a jump from 0% to 10%, so they will cost more this year.