New Delhi, Feb 1: Union Finance Minister Nirmala Sitharaman on Sunday announced a series of customs duty adjustments in the 2026–27 Budget, leading to price drops for life-saving drugs and local electronics while making luxury imports and tobacco more expensive. The changes aim to support domestic manufacturing and provide relief for patients, particularly those battling chronic illnesses.
The Finance Minister noted that the Basic Customs Duty on 17 new drugs, including critical medications for cancer and diabetes, has been slashed to zero. Additionally, she mentioned that seven more rare diseases have been included in the duty-free import list to ensure affordable healthcare.
“The list of items becoming less expensive due to tax benefits is a primary focus of this budget,” the Finance Minister said during her speech.
Consumers can expect lower prices for smartphones and tablets manufactured within the country due to refined tariff structures. The Finance Minister also noted that microwave ovens, solar panels, and EV batteries will become cheaper. For the aviation sector, a reduction in tariffs on aircraft parts is expected to lower operational costs, while duty-free fish catch beyond territorial waters could reduce seafood prices.
Conversely, several lifestyle and imported items are set to become more expensive. The government has increased duties on cigarettes, beedis, pan masala, and gutka. Luxury seekers will also face higher costs for imported alcohol and high-end watches.
The Finance Minister mentioned that exemptions were removed for coffee roasting and vending machines, likely driving up the price of professional brewing equipment. Furthermore, the removal of import tariff exemptions for specific chemicals like ammonium phosphate means some fertilizers will become costlier.
“Specific minimum duties on umbrellas and their parts will make cheap imports more expensive,” she said, adding that gear for photography and cinematography will also see a price hike.
