In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman introduced important changes to customs duties, impacting both consumers and industries throughout India. The budget's focus is on driving economic growth, encouraging local manufacturing, and enhancing the welfare of the middle class. However, the adjustments in import duties will result in some products becoming more affordable, while others will become more expensive.
In the Budget 2025, several items are becoming cheaper due to duty reductions. Electronics and mobile phones will see price decreases, particularly for mobile phones and accessories thanks to duty exemptions on 28 components used in battery manufacturing. LED/LCD TVs will also become more affordable due to lower duties on open cells and other essential components.
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“To the list of exempted capital goods, I propose to add 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing. This will boost domestic manufacture of lithium-ion batteries, both for mobile phones and electric vehicles,” said the FM in her Budget Speech.
The push for electric vehicles continues with reduced duties on EV batteries and key components like lithium-ion battery scrap and cobalt. The healthcare sector also benefits, with 36 critical medicines, including cancer drugs, exempted from basic customs duty, and reduced duties on various medical devices and equipment.
Finally, to support specific industries, the budget includes lower import duties on wet blue leather for the leather industry and raw materials for shipbuilding.
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Interactive screens are more expensive for both businesses and consumers. Meanwhile, a hike in customs duties on knitted fabrics could lead to higher costs in the textile industry, particularly for clothing and apparel. This increase in duties is intended to support domestic textile production and promote the growth of technical textiles.
