Union Budget 2025: Mobiles, EVs, medicines, what is getting cheaper, what is costlier?

Union Finance Minister Nirmala Sitharaman on Saturday (February 1) announced her eighth consecutive Budget. The focus was on women, farmers and youth with a
big tax relief for the middle class.

The common man’s biggest interest lies in tax reliefs and then on how the Budget will affect prices of goods. What is going to get cheaper and what will you pay for more?

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Union Budget 2025

What is getting cheaper?

Cancer drugs and medicines for chronic diseases: Thirty-six
lifesaving drugs will be fully exempted from basic customs duties

Electronic vehicles (EVs): Thirty-five additional goods for EV battery production are added to the BCD exemption list.

Leather goods: Wet Blue leather will be fully exempted from BCD. This will make leather jackets, belts and shoes cheaper.

Critical minerals: 12 critical minerals including cobalt powder, lithium-ion battery waste, lead and zinc will be exempted from BCD.

Frozen fish and frozen fish paste: Frozen fish will now be taxed at five per cent, down from 30 per cent and fish hydrolysates duties are cut from 15 per cent to five per cent. The BCD on frozen fish paste (surimi) will be reduced from 30 per cent to five per for the manufacture and export of its analogue products.

Shipbuilding: An exemption on BCD for ships and their parts extended for 10 more years.

Ethernet switches: The BCD on carrier-grade ethernet switches is reduced from 20 per cent to 10 per cent, aligning them with non-carrier-grade switches.

LED/LCD TVs and mobile phones: The prices of these electronic goods are expected to fall, reports NDTV. Twenty-eight additional goods for mobile phone battery production will be added to the exempted capital goods.

Handicraft: A new scheme was introduced to support handicraft export. The time for export has been extended from six months to one year, further extendable by another three months, if required. Nine items have been added to the list of duty-free inputs.

Construction material: The duty on marble and travertine, crude or roughly trimmed, merely cut into blocks, slabs and others has been reduced to 20 per cent from the earlier 40 per cent. The BCD on granite, crude or roughly trimmed, merely cut into blocks, slabs and others has also been reduced.

Flavouring agents in food and drinks: The BCD on synthetic flavouring essences and mixtures of odoriferous substances used in food and drink industries have been reduced from 100 per cent to 20 per cent.

What is getting costlier?

Flat panel displays: The BCD on flat panel displays has increased from 10 per cent to 20 per cent, impacting TVs and mobile phones.

Social welfare surcharge: The exemption is removed on 82 tariff lines currently under cess.

Knitted fabrics: The prices of knitted fabrics are expected to rise. The BCD rate on knitted fabrics covered by nine tariff lines has been changed from “10 per cent or 20 per cent” to “20 per cent or 115 per kg, whichever is higher”.