New Delhi, February 1 — Several everyday and industrial items are set to become cheaper while tobacco products, luxury imports and some equipment will cost more after Finance Minister Nirmala Sitharaman announced a series of customs duty changes in the Union Budget 2026–27.
Key relief comes for healthcare, clean energy and manufacturing inputs. “We are reducing customs duties on critical components and life-saving drugs to make them more affordable and to support domestic production,” Sitharaman said in her budget speech.
Among the biggest cuts is the Basic Customs Duty (BCD) on 17 new medicines — including drugs used in cancer and diabetes treatment — which has been slashed to zero. Seven additional rare diseases have also been added to the duty-free import list.
Lower duties will also apply to microwave oven parts, EV batteries, solar panels and aircraft components, a move expected to bring down prices across electronics, renewable energy and aviation sectors.
To support fishermen, the government announced duty-free imports of fish catch beyond territorial waters, which could ease seafood prices. Consumers may also see cheaper tablets and smartphones manufactured in India, as tariffs on several imported components have been reduced.
In a push for exports, Sitharaman proposed duty-free imports of select leather industry inputs. “This will help our leather exporters remain competitive in a challenging global market,” she said, pointing to the impact of steep US tariffs.
What gets costlier
On the other side, a range of products will see price increases due to withdrawal of exemptions and higher duties.
Cigarettes, beedis, pan masala and gutka are set to become more expensive as part of the government’s continued push to curb consumption of tobacco and related products.
Imported alcohol and luxury watches will also cost more.
Coffee roasting, brewing and vending machines have lost duty exemptions, likely pushing up prices for commercial coffee equipment. Umbrellas and their parts will now attract a specific minimum duty to discourage cheap imports.
Some fertilisers may become costlier after tariff exemptions were removed on ammonium phosphate and ammonium nitro-phosphate — key inputs for complex fertilisers.
Prices are also expected to rise for imported television equipment, cameras and film-making gear, including photography, cinematography and sound-recording equipment.