What’s Getting Cheaper and What’ll Cost You More

February 1, 2025

The budget aims to lower costs for key industries while boosting local production, but some imports will now come at a higher price.

For most people, the biggest takeaway from the Union Budget is simple—what gets cheaper and what burns a bigger hole in the pocket. This year is no different, as Finance Minister Nirmala Sitharaman’s first full budget of the Modi government’s third term brings a series of changes to basic customs duties (BCD), impacting everyday essentials and manufacturing.

What’s Getting Cheaper?

  • Lifesaving Medicines – 36 more drugs for cancer, rare diseases, and chronic conditions now fully exempt from customs duty. Six others will attract a lower 5% duty.
  • Critical Minerals – Cobalt powder, lithium-ion battery scrap, lead, zinc, and 12 other essential minerals now duty-free to boost local manufacturing.
  • TV Components – Open Cell parts for LCD/LED TVs now exempt from duty to encourage domestic production.
  • Lithium-Ion Battery Manufacturing – 35 capital goods for EV batteries and 28 for mobile phone batteries added to the duty-free list.
  • Shipbuilding & Shipbreaking – Duty exemptions on raw materials extended for another ten years.
  • Railway Maintenance – Duty relief extended to railway maintenance, repair, and overhaul services.
  • Telecom Equipment – Carrier Grade ethernet switches now attract a lower 10% customs duty, down from 20%.
  • Handicrafts & Leather – Longer export timelines for handicrafts, plus duty exemptions on Wet Blue leather and removal of 20% export duty on crust leather.
  • Seafood Exports – Customs duty on frozen fish paste (Surimi) slashed from 30% to 5%, and fish hydrolysate duty reduced from 15% to 5%.

What’ll Cost More?

  • Knitted Fabrics – Duty hiked to 20% or ₹115 per kg, whichever is higher.
  • Smart Displays – Interactive Flat Panel Display (IFPD) duty doubled from 10% to 20%.

The budget aims to lower costs for key industries while boosting local production, but some imports will now come at a higher price.

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