Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2025-2026, which is her eighth consecutive budget announcement. This is the second full budget of the Modi 3.0 government, which won another term in the 2024 Lok Sabha elections. The budget is focused on 10 key areas, including agriculture, manufacturing, employment, MSMEs, rural development, and innovation.
“This budget will work on transformative reforms,” Sitharaman said in her budget speech.
Items That Became Cheaper
The government has announced exemptions from Basic Customs Duty (BCD) on 36 cancer and rare disease drugs. Moreover, 37 more medicines will now be exempt from BCD.
To increase domestic production, the Centre announced full BCD exemptions for cobalt products, LED, zinc, lithium-ion battery scrap, and 12 critical minerals. The exemption on raw materials for ship manufacturing has also been extended for a decade. Wet blue leather will also get full exemption from BCD.
The duty on fish pasteurii was reduced from 30% to 5%. The government has also presented a scheme to further the handicraft export sector.
Items That Gained Costlier
The government has also increased BCD on interactive flat panel displays.It has enhanced the BCD of this product from 10% to 20% in order to rectify the inverted duty structure. Provision for provisional assessment has also been allowed within two years.
In the previous year’s budget, Sitharaman has announced cuts on customs duties on mobile phones, gold, silver, and copper. Three medicines meant to treat cancer have also been exempted.
The central government hiked customs duty on non-biodegradable plastics to 25% by 2024. The duty on specified telecom equipment has been raised from 10% to 15%.
