Union Budget 2026: What Gets Cheaper, What Gets Costlier for Consumers

With the presentation of the Union Budget 2026 in Parliament, Finance Minister Nirmala Sitharaman announced several changes in customs duties and tariffs that are expected to impact prices of everyday and imported goods for Indian consumers.

During her Budget speech on Saturday, Sitharaman outlined plans to reduce customs duties on select items and lower import tariffs on certain foreign products, which could make them more affordable in the coming months.

Items Expected to Get Cheaper

According to the Budget proposals, the following goods and services are likely to see price reductions:

• Personal-use imported goods

• 17 cancer-related drugs and medicines

• Medicines and food for special medical purposes for seven rare diseases

• Leather footwear and related products

• Textile garments

• Seafood products

• Overseas tour packages

• Lithium-ion battery cells

• Solar glass

• Critical minerals

• Biogas-blended CNG

• Aircraft manufacturing components

• Microwave ovens

• Foreign education expenses

These measures aim to reduce production costs, boost manufacturing, and ease the financial burden on consumers and patients.

Items Likely to Become Costlier

At the same time, the Budget proposes higher duties or taxes on certain goods and activities, which may lead to price increases in the following areas:

• Alcoholic beverages

• Cigarettes and tobacco products

• Components for nuclear power projects

• Minerals, including iron ore and coal

• Penalties related to income tax misreporting

• Stock options and futures trading

Cheaper European Alcohol Possible

While domestic alcohol prices may rise, imported wines and spirits from Europe could become more affordable following the recently concluded India–European Union free trade agreement.

Under the deal, India will reduce or eliminate tariffs on nearly 97 per cent of EU exports. As a result, products such as wine, beer, select spirits, fruit juices, processed foods, kiwis, pears and non-alcoholic beer may see price cuts in the Indian market.

Key Budget Highlights

In her 81-minute address, Sitharaman also announced reforms related to income tax return filing, an increase in Securities Transaction Tax (STT) on futures and options, expansion of India’s semiconductor mission, and development of rare earth corridors.

The Budget received praise from Prime Minister Narendra Modi and senior BJP leaders, who described it as growth-oriented. However, Opposition parties, including the Congress, criticised it as “lacklustre” and inadequate in addressing the needs of the poor and middle class.