Budget 2026-27: Items Become Costly And Cheap
- Budget 2026-27 impact on prices of goods and medicines
- Budget 2026-27 raises prices of luxury and select items
Hyderabad: Finance Minister Nirmala Sitharaman presented the Budget 2026-27 in the Lok Sabha on Saturday, outlining measures that will make several items cheaper while pushing up the prices of others. The budget impact covers goods, medicines, travel related services, and select consumer products. While some relief has been announced through duty cuts and exemptions, certain penalties and product categories will see higher costs.
Under the Budget 2026-27 proposals, the government reduced the Tax Collected at Source on foreign tourist packages to 2 percent. Meanwhile, Tax Deducted at Source on foreign education expenses under the Liberalised Remittance Scheme has also been reduced. Therefore, foreign tourism and overseas education are expected to become more affordable to some extent. Customs duty on alcoholic liquor, liquor, and certain minerals has been reduced from 5 percent to 2 percent.
The budget also announced duty relief for several industrial and clean energy sectors. Import of materials required for shoe upper exports has been made duty free. Basic Customs Duty has been removed on key materials used for solar glasses. Also, the government removed BCD on energy transition equipment. BCD exemption was extended to capital goods and critical minerals. Meanwhile, BCD on equipment meant for personal use was reduced from 20 percent to 10 percent.
In the healthcare sector, the government completely removed Basic Customs Duty on 17 types of drugs used for the treatment of rare diseases such as cancer and diabetics. Later, the budget also said that prices of fish caught by Indian fishermen in marine waters from the coastline up to the Special Economic Zone will come down. Similarly, equipment used for nuclear power projects, batteries used in electric vehicles, and India made smartphones, tablets, and aircraft parts are among items expected to become cheaper.
However, the Budget 2026-27 also announced measures that will increase prices in several areas. The fine for those who fail to disclose income details correctly will be raised to 100 percent. Penalties will also apply to undisclosed movable assets. Meanwhile, prices of luxury watches, alcohol, cigarettes, bidis, pan masala, and gutka will increase. The cost of coffee roasting, brewing, and vending machines will also rise.
In addition, prices of ammonium phosphate, ammonium nitro phosphate, and other related items will increase. Equipment and cameras used for filming are also set to become costlier. Therefore, while the budget offers relief in several sectors, it also tightens compliance and raises costs in others.
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