Budget 2026: what gets costlier, what gets cheaper?

Union Finance Minister Nirmala Sitharaman has again laid out customs duties and import tariffs changes for the upcoming fiscal year. These changes make some items costlier and others cheaper as the relevant tariff rates increase or decrease.

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Here is what will get cheaper as laid out in the Budget for 2026-27:

The Basic Customs Duty (BCD) on 17 new drugs and medicines has been slashed to nil in this year’s Budget. Seven additional rare diseases have been added to the duty-free import list. In a move to strengthen domestic aviation manufacturing, the Budget provides BCD exemption on components and parts, including engines, used in the manufacture of civilian aircraft.

Many consumer goods like smart phones, microwave ovens, leather products and many more will also get cheaper.

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Here are the products that will tentatively get costlier:

Umbrellas and their parts will now attract a specific minimum duty, making cheap imports costlier. The price of cigarettes, pan masala, and other tobacco products will rise as an additional excise duty and a health cess kicks in. Futures and options trading is also set to become more expensive after proposals announced in the Union Budget 2026.

For tobacco products, the National Calamity Contingent Duty (NCCD) on chewing tobacco, gutkha and similar products has been increased from 25 per cent to 60 per cent. However, the government clarified that the effective duty incidence will be maintained at 25 per cent through notification, limiting the immediate price impact.

With inputs from ANI