Union Budget 2026: Here’s what gets cheaper and what becomes costlier and impact on households

As Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in Parliament, taxpayers and consumers nationwide are keenly observing how the new fiscal measures will affect everyday prices.

Several changes in duty structures and tax provisions are expected to impact the cost of goods and services across various sectors.

Items Likely to Get Cheaper

The government has rationalised certain customs duties and indirect taxes to support domestic production and lower the cost of key products:

Essential Medicines:

Customs duty relief on numerous critical drugs, including those for diabetes and cancer, is expected to make these medicines more affordable for patients.

Mobile Phones and Electronics:

Duty relief on components and inputs used in manufacturing could lead to reduced prices for phones and related devices.

EV Batteries: Basic customs duty exemption on lithium-ion cells will support cleaner energy adoption and lower costs for electric vehicle batteries.

Textiles and Leather Inputs:

Duty cuts on raw materials such as designated textile inputs and wet-blue leather are expected to reduce costs for finished apparel and leather products.

Marine Products: Duty-free benefits on key seafood processing inputs have been expanded, helping reduce production costs for exporters.

Items Expected to Become Costlier

At the same time, the government has adjusted some duties and taxes to support local industry and public health objectives:

Tobacco and Sin Goods:

Excise duty and health cess on cigarettes, pan masala and other tobacco products have been increased, making them more expensive for consumers.

Certain Industrial Goods: 

Removal of long-standing exemptions and tariff adjustments on some imported items where domestic manufacturing has grown may push up prices for those products.

What This Means for Households

Middle-class households are watching the changes closely, as any reduction in cost of essential goods or medical supplies could ease monthly expenses. Conversely, higher duties on tobacco products reflect the government’s dual aim of improving public health and increasing tax revenue.

Overall, the Budget’s tax rationalisation strategy aims to balance consumer relief, domestic industry support, and revenue needs, with clear effects on what Indians will pay for everyday goods in the year ahead.