Union Budget 2026: What Gets Cheaper, What Becomes Costlier After Sitharaman's Announcements

Budget 2026 Winners and Losers: From Cheaper Cancer Medicines and Electronics to Costlier Cigarettes and Stock Trading After Sitharaman's Speech

Relief for Medicine and Electronics Buyers

Finance Minister Nirmala Sitharaman announced duty reductions on life-saving medicines in the Budget 2026, providing relief to families facing high treatment costs. The government maintained its focus on healthcare access by lowering import costs for critical pharmaceutical products.

Mobile phone components and tablets are expected to see price reductions due to customs duty relief. The electronics sector received attention as part of the government's push to strengthen domestic manufacturing under the Make in India initiative. Microwave ovens will also become more affordable due to the exemption of basic customs duty on specified manufacturing parts.

Battery prices for electric vehicles and energy storage may decline as the government extended duty exemptions on capital goods used for manufacturing lithium-ion cells.

Personal Imports and Travel Get More Affordable

The Finance Minister announced a significant cut in customs duty on goods imported for personal use, slashing the tariff rate from 20 percent to 10 percent. This move benefits travelers and online shoppers who regularly purchase items from overseas, making international shopping less expensive.

Tax Collected at Source rates were reduced for overseas education and medical purposes from 5 percent to 2 percent. Foreign tour packages also saw TCS reductions to a flat 2 percent rate, easing the financial burden on families supporting education abroad or seeking medical treatment overseas.

Tobacco and Luxury Items Face Higher Costs

Tobacco products became significantly more expensive from February 1, 2026. The government implemented a new excise duty and health cess regime on cigarettes, tobacco products, and pan masala, with these items now attracting 40 percent GST instead of the previous 28 percent rate. Excise duty on cigarettes ranges from Rs 2,050 to Rs 8,500 per 1,000 sticks depending on length and filter type.

Luxury items such as premium watches and alcohol are expected to see price increases following the Budget. The government's approach targets sin goods and high-end imports while providing relief on essential items and domestic manufacturing inputs.

Securities Trading Becomes Costlier

Stock market traders face higher costs as Securities Transaction Tax on futures increased to 0.05 percent from 0.02 percent, while options premium and exercise rates rose to 0.15 percent. This move contrasts with investor expectations for STT reductions and will impact trading expenses across equity derivatives markets.

Support for Seafood and Leather Exports

The government proposed increasing the duty-free import limit for inputs used in processing seafood products for export from 1 percent to 3 percent of the previous year's export turnover. Certain leather equipment is expected to become cheaper due to reduced import duties on raw materials, supporting India's export competitiveness in these sectors.