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Budget 2025 is here—see which costs are rising, where you can save, and how to adjust your budget for the year ahead.
Indian finance minister Nirmala Sitharaman announced the 2025-26 budget on February 1, 2025. The finance minister presented her eighth consecutive budget, which will come into effect from 1st April.
In her budget speech, Sitharaman said that this budget will work on “transformative reforms.” Let’s take a look at what got cheaper and what got expensive after the budget announcement.
Items That Became Cheaper Under Budget 2025
Ethernet Services
The duty on carrier-grade Ethernet services reduced from 20% to 10%. They are used to deliver last-mile connectivity to rural broadband providers by connecting with data centres.
Motorcycles
The current 50% customs duty on motorcycles has been reduced to 40% for motorbikes with an engine capacity of up to 1600 CC.
Bikes with up to 1600 CC and above engine capacity will now have a 30% customs duty as opposed to the earlier 50% duty.
Food Industry
The basic customs duty on synthetic flavouring essences and mixtures of odoriferous substances used in food and beverages has been reduced to 20% from 100%.
The customs duty on fish pasteurii has also been reduced to 5% from 30% to benefit the food and agriculture industries, making it cheaper for distribution and processing.
Medicine & Drugs
Around 36 cancer and rare disease drugs have been exempted from basic customs duty. The government has also proposed the exemption of duty for 37 additional medicines.
Manufacturing Sector
The government has fully exempted critical minerals like cobalt products, zinc, lithium-ion battery scrap, LEDs, and 12 others from basic customs duty. This exemption will reduce the processing cost of raw materials in the electronics and battery production industries.
The basic customs duty on raw materials for ship manufacturing is also exempted for the next 10 years. This will boost the growth in the maritime sector and encourage the “Make in India” initiative.
Handicrafts
The government has announced a scheme to promote handicraft exports in the global market.
Leather Industry
The wet blue leather is also exempted from basic customs duty, resulting in a reduction in input costs for manufacturers. The duty on crust leather (hides and skins) has also been reduced to 0% from 20%.
Social Welfare Surcharge
The Social Welfare Surcharge is exempted from 82 tariff lines subject to a cess. This will reduce the tax burden on businesses and industries dealing with such goods.
Which Items Got Costlier Under The Union Budget 2025?
Flat Panel Displays
The basic customs duty on interactive flat panel displays has been increased from 10% to 20%. This change aims to provide equal opportunities for domestic manufacturers and rectify the imbalanced duty structure.
Provisional Assessment Time Limit
To ensure swift and efficient customs clearance for businesses, the government has introduced a time limit of two years for provisional assessment.
Knitted Fabrics
The basic customs duty on knitted fabrics covered under specified tariff items has been increased up to 20% or ₹115 per kg, whichever is higher.
The Bottom Line
The Union Budget 2025 has introduced several customs duty changes across various sectors. The change in customs duty is aimed at promoting India’s manufacturing and export growth, making India a self-sustaining economy.
Frequently Asked Questions
1. Which items will become expensive?
Knitted fabrics and interactive flat displays will become more expensive under the union budget 2025.
2. Which items will become cheap?
Life-saving drugs, mobile phone components, LCD/LED TVs, EV parts, and medical tools will become cheaper.
