Union Budget 2026: What gets cheaper, what gets costlier for Indians

Every Union Budget brings a fresh set of tax and duty changes that decide what Indians pay more for and what becomes easier on the pocket. Prices often shift when the government tweaks import duties, domestic taxes, and levies to encourage certain industries and discourage others, which directly affects the cost of essentials, consumer products, and business inputs. 

Let’s understand the Union Budget 2026 price impact. Along with this, you can explore the list of items that are cheaper after the Union Budget 2026 for Indian households, as well as those that get costlier.

Here is the list of items that are cheaper after the Union Budget 2026 for Indian households: 

1. Healthcare relief    

Basic Customs Duty (BCD) has been fully exempted on seventeen life-saving cancer drugs and medicines for seven rare diseases. This move lowers treatment costs and can offer much-needed financial relief to patients and families. 

2. Travel and Education    

The Tax Collected at Source (TCS) on foreign education and medical treatment under the Liberalised Remittance Scheme (LRS) has been slashed from 5% to 2%. There will be no TCS applicable on remittances up to ₹10 lakh. Likewise, overseas tour packages now attract a uniform 2% TCS. These changes make international travel and studying abroad more accessible. 

3. Clean energy     

EV battery prices post 2026 Budget are expected to decline as the BCD on lithium-ion cells and their raw materials, such as lithium carbonate and sodium antimonate (used in solar glass), has been removed or extended. Solar panel manufacturing may become more cost-effective, accelerating India’s renewable energy transition.

4. Consumer goods    

A key highlight is cheaper electronics after Budget 2026. The government has exempted BCD on specified parts of microwave ovens and mobile phone components, such as camera modules. It supports the ‘Make in India’ initiative by reducing production costs for domestic manufacturers, which lowers retail prices.    

Further, duty-free import of inputs such as ‘Wet Blue’ leather (raw material input) will drop the prices of high-quality leather shoes and accessories. Additionally, the customs duty on personal imports has been halved from 20% to 10%. It can make online shopping from global platforms more affordable.

Here is a list of items that become costlier after the Budget:

1. Luxury Goods

While there are some cheaper electronics after Budget 2026, the Government has imposed a customs duty hike on imported watches, high-end audio equipment, and premium alcohol to discourage consumption and protect domestic industries.  

Additionally, the impact of customs duty on luxury goods extends to high-end electronics and professional photography equipment.

2. Sin tax 

The excise duty on tobacco products, including cigarettes and pan masala, has been increased through a higher National Calamity Contingent Duty (NCCD). These products will now become costlier.

3. Daily utilities 

Items like imported umbrellas and their parts now face higher duties. Coffee roasting and brewing machines have lost their duty exemptions. These moves aim to curb low-value imports, which increases costs for cafes and importers.

4. Financial trading 

For those in the stock market, the Securities Transaction Tax (STT) on Futures and Options (F&O) has been increased. It has made speculative trading more expensive.

Small and Medium Enterprises (SMEs) are the backbone of the Indian economy, and the Union Budget 2026 price impact on this sector is mainly supportive.

The government announced a ₹10,000 crore SME Growth Fund. For manufacturers, the reduction in customs duties on critical mineral machinery and leather/seafood inputs can lower production costs. However, enterprises depending on imported capital goods for non-priority sectors may face a higher impact of customs duties on luxury goods and machinery. This may force them to look for local alternatives, which can boost domestic demand.

The Union Budget 2026 has reshuffled the prices in the Indian economy. It lowers duties levied on priority sectors, including healthcare, electronics, and clean energy, and raises them on selected luxury and imported items. The broader intent is to support essential consumption, domestic manufacturing, and affordable production inputs.
 

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.