Union Budget 2025: What's cheaper and what's costlier?

Finance minister Nirmala Sitharaman presented her eighth consecutive Union Budget on Saturday. A key highlight of the budget is the exemption of income tax for earnings up to Rs 12 lakh, providing significant financial relief to millions of taxpayers. However, people are also eager to know about the items which became cheaper and costlier after this budget.

Here's a breakdown of what’s getting cheaper and what’s set to become costlier after this Budget:

Items that have become cheaper:

• Life-Saving Drugs: The FM has fully exempted 36 life-saving drugs used for cancer and chronic disease medicines from basic customs duties.
• Other Medicines: In addition, 37 medicines are also exempted from basic customs duty.
• Electronic Goods: The FM announced a reduction of the basic customs duty to 5% for open cells and other components.
• Headphones: The raw materials used to produce wired headsets, microphone and USB cables are exempted from basic customs duty.
• Electirc Vehicles: 35 additional goods used in the manufacturing of EV batteries are also added to exempted capital goods.
• Mobile Phones: 28 additional goods used in mobile phone batteries are also added to exempted capital goods.
• Critical minerals: Cobalt powder and waste, scrap and lithium-ion batteries and 12 other critical minerals are exempted from basic customs duty.
• Leather products: The government has fully exempted wet blue leather from basic customs duty.
• Shipbuilding raw material: The government will continue the exemption of basic customs duty on raw material components used for the manufacturing of ships for another 10 years.
• Fish Pasteurii: The FM has reduced basic customs duty to 5% from 30% on fish pasteurii.
• Handicraft exports: The government has announced a scheme to promote handicraft globally, making it more competitive.
• Carrier-grade ethernet switches: The custom duty on the ethernet switches has been reduced to 10% from the earlier 20%.
• Marine products: The basic customs duty on fish hydrolysate for the manufacture of aquatic feed has been reduced to 5% from 15%.
• Motorcycles: The basic customs duty on motorcycles with an engine capacity not exceeding 1,600 cc will be reduced to 40% from the current 50%.

Items that have become costlier:

• Knitted fabrics: The basic customs duty on knitted fabrics has been increased from 10-20% to 20% or Rs 115 per kg, whichever is higher.
• TVs: The basic customs duty on flat panel displays has been increased from 10% to 20%, impacting TVs.