As the Union Budget season arrives, many are eager to know the prices of everyday goods. Let’s review the price hikes and drops.
The start of the fiscal year brings the budget 2025-26 presented by Union Finance Minister Nirmala Sitharaman on February 1, 2025. The new budget for the country focuses on key points such as improving business ease, income tax slabs, and macroeconomic stability.  The budget had laid out various customs duties and tariff changes for imports, making common goods costlier or cheaper.
Several items, such as fish, shrimp, cancer drugs, and mobile phone chargers, were featured in the budget for 2024-25 and their prices were reduced. These same changes also remain in the budget for 2025-26.
What will be more expensive in 2025?
The Textiles (Knitted Fabrics): The new tariff rate on BCD rates is set at 10% or 20% for technical textile products, such as medical textiles, agro-textiles, and geo-textiles, priced at 115 per kg or higher. This initiative aims to promote domestic production.
Social welfare Surcharge: The exemption was removed on 82 tariff lines; it is currently under cess.
Electronics (Interactive Flat Panel Display): The basic custom duty on interactive flat panel displays has increased from 10 to 20%, according to FM Sitharaman’s budget 2025.
What will be cheaper in 2025?
Life-saving medication: 36 drugs related to cancer and rare diseases will be fully reduced from Basic Custom Duties. The other six medicines will only include 5% of the duty.
Critical minerals: Prices of lithium-ion battery scrap, lead, zinc, cobalt powder, and other minerals get cheaper, intending to boost manufacturing and jobs, these changes were implemented by a reduction in BCD (Basic Custom Duty).
Mobile Phones & electronics: Mobiles will be cheaper as 28 goods used in the production of mobile phones have been exempted from the list of capital goods list. Other mobile equipment such as camera module connector, microphone and receiver, USB cable, and wired headset will be reduced from 2.5% to 0. In electronics parts such as touch sensors, touch glass sheets for making LED/LCD TVs have been reduced from the BCD list from 15 to 5% to increase local manufacturing.
Motorcycle imports: The reduction of motorcycle imports was done by the engine capacity of the vehicle. Above 1600 CC it was reduced to 30%, For 1600 CC reducing to 40%, semi-knocked down was reduced to 20%, and for completed knocked down reduction appeared as 10%.
Shipbuilding: Shipbuilding and repairs will get cheaper as the raw materials used in the process are exempted from the list of BCDS for the coming ten years.
Sea Food: Fish hydrolysate (used in making aquatic feed) and frozen fish paste called ‘surimi’ will not have import duties according to the new budget to help seafood exports.
Synthetic Essences: Flavoring essences used in the making of food or drink called odoriferous substances will be cheaper due to a huge cut from 100 to 20%.
Textile machinery: New types of looms have exempted the list of BCDs, which were used in making textiles resulting in cheaper textile machinery.
Handicrafts: The extended timeline for exports of handicrafts will make it easy for exporters to ship goods according to the new budget.
Leather: To help small tanners export duty on crust leather has been lessened to zero, as well Wet blue leather imports are made cheaper by exempting from BCD.
The economic Survey
The presentation of the Economic survey in parliament on Friday showcased Indian economic power to be between 6.3% and 6.8% for the fiscal year 2025-26.
“The fundamentals of the domestic economy remain robust, with a strong external account, calibrated, fiscal consolidation and stable private consumption.
Haripriya Mishra is a journalist deeply interested in world news and geopolitics. She likes to explore the complexities of global affairs and strives to bring clarity to these issues through thoughtful journalism. Through her writing, she intends to raise the right questions, fostering informed discussions about national and international matters. Haripriya aims to use journalism as a platform to connect with people, share diverse perspectives, and contribute to a deeper understanding of global issues. She is committed to producing content that is accurate, ethical, and impactful. She enjoys creative writing and reflecting on the nuances of media and storytelling.
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