New Delhi, February 1, 2026: Finance Minister Nirmala Sitharaman presented the Union Budget 2026 today, announcing several customs duty adjustments aimed at supporting domestic manufacturing, healthcare access, green energy, and curbing harmful consumption while protecting vulnerable sectors from cheap imports.
Here are the major items that will become cheaper (duty reduced / exempted) and costlier (duty increased / new levy introduced) following the budget proposals.
Items That Get Cheaper (Duty Reduced / Exempted)
| Category | Details / Purpose |
|---|---|
| 17 Cancer drugs / medicines | Full customs duty exemption to improve affordability and access to treatment |
| Leather or synthetic footwear | Duty rationalisation to support footwear industry and consumers |
| Smartphones | Customs duty reduction to boost domestic manufacturing and reduce prices |
| EV batteries | Duty cut to accelerate electric vehicle adoption and battery production |
| Microwave ovens | Reduced duty to make household appliances more affordable |
| Solar panels | Duty exemption / cut to support renewable energy targets |
| Lithium battery components | Lower duties to strengthen domestic EV and battery ecosystem |
| Drugs & medicines for 7 rare diseases | Customs duty exemption for orphan drugs to aid patients with rare conditions |
| Civilian training aircraft parts | Duty relief to support aviation training and general aviation sector |
| Leather products | Rationalised duty structure to benefit leather goods industry and exports |
| Dutiable drugs & medicines (HS 9804) | Personal use imports – duty reduction for individuals |
| Overseas tour packages | Service tax / GST concessions to make international travel more affordable |
Items That Get Costlier (Duty Increased / New Levy)
| Category | Details / Purpose |
|---|---|
| Umbrellas and their parts | Specific minimum duty introduced to protect domestic manufacturers from cheap imports |
| Gutka | Customs & excise duty hike to discourage consumption and protect public health |
| Paan Masala | Significant duty increase to curb tobacco-related products |
| Beedis | Higher duty to reduce affordability and consumption of beedis |
| Khanij (Minerals: Iron, Coal, Salt etc.) | Export duty / cess increase to conserve natural resources and boost revenue |
| Futures and derivative trading | Securities Transaction Tax (STT) hike to discourage speculative trading |
These changes are expected to take effect from the date of enactment of the Finance Bill or through notifications, unless specified otherwise. The government aims to balance public health, domestic industry protection, green transition, and affordability through these targeted duty modifications.
