Budget 2026: Full List of Cheaper and Costlier Items

The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, reflects a strategic pivot towards domestic manufacturing (Atmanirbhar Bharat) and healthcare accessibility and characterised by significant customs duty rationalisations, specifically targeting reductions in costs for life-saving treatments and essential electronics while discouraging the import of finished luxury goods.

Overview of Budget 2026 and Economic Implications

The budget sets a fiscal deficit target of 4.3% for FY 2026-27, maintaining a steady path of fiscal consolidation. A massive boost in capital expenditure (Capex) to ₹12.2 lakh crore (up 9% from the previous year) aims to drive infrastructure growth and job creation.

For the average citizen, the income tax slabs under the New Tax Regime remain unchanged from the 2025 revision, meaning individuals with a taxable income of up to ₹12 lakh effectively pay zero tax (including the standard deduction and rebates). This stability provides middle-class households with a predictable disposable income.

What is Becoming Cheaper Post-Budget 2026

1) Essential Goods & Medical Supplies

• Cancer Drugs: Basic Customs Duty (BCD) has been fully exempted for 17 cancer drugs, significantly lowering the cost of chemotherapy and related treatments.
• Rare Disease Medicines: 7 drugs for rare diseases and specialised medical foods are now duty-exempt.
• Diabetes Care: Prices for insulin and other critical diabetic medicines are expected to drop due to rationalisation of supply chain taxes.

2) Consumer Goods

• Mobile Phones & Tablets: Duties on components (connectors, PCBA, and battery covers) have been slashed to boost local assembly.
• Microwave Ovens: BCD on specific parts used for manufacturing has been removed, making domestic microwaves cheaper.
• Leather Footwear: Duty-free import of inputs such as "Wet Blue" leather will lower the prices of high-quality leather shoes and accessories.
• EV Batteries: Extension of duty exemptions on lithium-ion cell manufacturing equipment will help stabilise and eventually reduce Electric Vehicle prices.

3) Services

• International Travel: The TCS (Tax Collected at Source) on overseas tour packages has been reduced from 5-20% to just 2%, making foreign holidays more affordable.
• Foreign Education: TCS on remittances for education and medical purposes is also capped at 2%, easing the burden on students studying abroad.

4) Tax-Related Reliefs

• Standard Deduction: Remains at ₹75,000 for salaried individuals under the New Tax Regime.
• Interest on Accident Claims: Interest awarded by the Motor Accident Claims Tribunal is now fully tax-exempt for individuals.

What is Becoming Costlier Post-Budget 2026

1) Luxury and Non-Essential Goods

• Imported Luxury Watches: Higher tariffs to protect domestic premium brands.
• Imported Alcohol: Duty hikes on premium spirits and wines.
• High-End Cameras: Photographic and filming equipment imported from abroad will see a price hike.

2) Environmental & Sin Goods

• Cigarettes & Tobacco: Hike in National Calamity Contingent Duty (NCCD) makes smoking more expensive.
• Non-Eco-Friendly Inputs: Higher duties on certain plastics and non-recyclable packaging materials.

3) Health & Wellness Adjustments

• Coffee Machines: Removal of duty exemptions on coffee roasting and brewing machines may lead to slightly higher prices for café-style home equipment.

4) Tax Adjustments

• Stock Trading (F&O): The Securities Transaction Tax (STT) has been raised to 0.05% on Futures and 0.15% on Options, increasing the cost for active retail traders.

Sector-Specific Price Changes

Full List of Costlier and Cheaper Items

How People Can Benefit from the New Budget Changes

1. Plan International Travel Now: With TCS down to 2%, the upfront cost of booking foreign trips is much lower.
2. Upgrade Electronics Locally: Instead of buying imported gadgets, look for "Made in India" smartphones and appliances, as they benefit most from the new duty cuts.
3. Review Trading Strategies: F&O traders should account for the higher STT in their profit/loss calculations to avoid "tax slippage."
4. Maximize New Tax Regime: If your income is below ₹12.75 lakh (including standard deduction), ensure you opt into the New Tax Regime to enjoy zero tax liability.

Conclusion

Budget 2026 is a "Growth and Relief" budget. It provides immediate financial relief to families dealing with serious illnesses and encourages middle-class spending on travel and electronics. While it makes speculation in the stock market and luxury imports costlier, the overarching goal is to make India a global manufacturing hub while keeping essential living costs in check.