Full List of Costlier and Cheaper Items: Union Budget 2026-27
Category | Items Getting Cheaper (Lower Duty/Tax) | Why It’s Cheaper | Items Getting Costlier (Higher Duty/Tax) | Why It’s Costlier |
Healthcare & Medicines | 17 essential drugs (incl. cancer drugs) | Basic customs duty exempted | — | — |
Medicines for rare diseases (7 added) | Duty exemption expanded | — | — | |
Electronics & Appliances | Microwave ovens and parts | Reduced customs duty | Imported TV equipment | Duty exemptions removed from 1 Apr 2026 |
Smartphones & tablets | Lower duty on components & goods made in India | Digital cameras & film equipment | Duty exemptions removed | |
Consumer Goods & Imports | Consumer electronics imported for personal use | Reduced duty on personal-use imports | Coffee roasting/brewing/vending machines | Exemptions removed from Feb 2, 2026 |
Overseas imports (personal) | Dutiable goods duty cut 20% → 10% | Luxury watches | Tariff or tax adjusted higher | |
Industrial Inputs & Manufacturing | Aircraft components (civilian & training) | Lower basic duty | Fertilisers (Ammonium phosphate, ammonium nitro-phosphate) | Duty exemption removed |
EV batteries & parts | Duty reduction | — | — | |
Solar panels and energy transition inputs | Lower tariff | — | — | |
Leather & synthetic footwear inputs | Duty-free imports to support exports | — | — | |
Agriculture & Food | Seafood (commercial fishing beyond territorial waters) | Duty-free catch support | — | — |
Tobacco & Sin Goods | — | — | Alcohol (imported & TCS hike) | Higher duty and higher TCS |
— | — | Tobacco products (cigarettes, beedis, pan masala, gutka) | Higher excise/taxes enforced | |
Other Imports / Misc | Sports equipment | Lower duty expected | Umbrellas & parts | Now specific minimum duty |
— | — | Photographic, sound-recording equipment | Exemption lapses |
Cheaper Items Cost Structure:
- Duty cuts focus on healthcare, electronics, clean energy, aviation parts, and personal imports.
- Reducing basic customs duty on essential medicines (incl. cancer drugs) can lower treatment costs and inventory costs for medical distributors.
How does cheaper items in the budget 2026 help you increase profit?
Costlier Items Because of Higher Taxes:
- Sin goods like alcohol and tobacco will cost more due to higher duties and tax‑collected at source (TCS) rates.
- Certain imported consumer and manufacturing equipment will become more expensive due to the removal of exemptions or new duties.
Know more: 2026 budget highlights all MSMEs need to know
What This Means for MSMEs-
- Healthcare retailers and pharma distributors may see better margins as some essential medicines and inputs become cheaper to import.
- Electronics and solar businesses can lower product costs because key components will now cost less to bring in.
- Food and seafood traders may benefit from lower supply costs where export support and duty relief apply.
- Businesses dependent on imported machinery or filming equipment might face higher input costs and must adjust pricing or sourcing strategies.
- Fertilizer dealers and agri-input suppliers could face a rise in raw material costs.
Now that we understand the costlier and cheaper items in budget 2026, let’s explore how we can manage business growth without affecting operations and file February return before due dates with the right budget credit scheme for the business.
Which Budget 2026 Scheme Is Right for Your Business?
If your business situation looks like this… | Best scheme for you | Why it fits |
You need working capital but don’t have property or assets | Credit Guarantee Scheme (CGTMSE) | Get collateral-free loans through banks and NBFCs |
Customers take 60–90 days to pay | TReDS (Invoice Discounting) | Convert invoices into cash within 1–2 days |
You want to expand, buy machinery, or scale operations | SME Growth Fund (₹10,000 Cr) | Equity-style support with no immediate EMI pressure |
You run a very small or early-stage business | Self-Reliant India Fund | Designed for micro enterprises needing risk capital |
You are in manufacturing or exports | Interest Subsidy / Priority Sector Lending | Lower interest reduces EMIs and improves cash flow |
You sell to PSUs or government departments | TReDS + CPSE mandate | Faster payments and smoother cash flow |
You struggle with compliance and paperwork | Corporate Mitras support | Professional help with accounts and compliance |
Final tip for MSMEs after Budget 2026
If your GST filings, invoices, and bank records are up to date, you can qualify for more than one scheme at the same time.
For example:
- Use TReDS for faster payments.
- Take a CGTMSE-backed loan for working capital.
- Plan growth funding through the SME Growth Fund.
If you want to use Budget 2026 schemes smoothly, keep your invoices, GST filings, and payments organized.
Budget 2026 FAQs: Cheaper & Costlier Items
What items became cheaper after Union Budget 2026?Budget 2026 reduced duties on select raw materials and components, helping lower the cost of electronics parts, EV inputs, and certain consumer goods.
Which items became costlier in Budget 2026?Luxury goods, imported machinery, filming equipment, and some non-essential imports may now cost more due to higher customs duties.
Why did the government increase prices on some imported items?The goal is to boost local manufacturing, cut import dependence, and strengthen Indian industries.
How does Budget 2026 impact small businesses and traders?Businesses using imported equipment may face higher costs, while those relying on local inputs could benefit from lower prices.
Will these price changes affect daily household expenses?Daily essentials are mostly unchanged. The impact is stronger on imported and premium products.