Finance Minister Nirmala Sitharam in her ninth Union Budget has set the tone for certain items like smartphones, cancer medicines and travel abroad to get cheaper while imported liquor, luxury watches and tobacco are to be costlier.

Here is a list of what gets Cheaper:

Cancer drugs and rare disease medicines

Sitharaman’s Budget for 2026-27 proposes to remove basic customs duty on 17 cancer-related drugs and medicines. The import duties on cancer drugs are to reduce.

The government has also extended customs duty relief to drugs and specialised foods used in the treatment of seven additional rare diseases. 

Foreign tourism packages

The tax collected at source (TCS) on foreign tourism packages has been reduced sharply to 2%, from the earlier 5% to 20% rate structure.

Foreign education

Students planning to study abroad will benefit from a lower tax deducted at source (TDS) under the Liberalised Remittance Scheme for education-related expenses.

Microwave ovens

Microwave ovens will become more affordable after the exemption of basic customs duty, lowering import costs.

Smartphones and tablets

Several components used in mobile phone manufacturing will now attract lower tariffs, which could bring down prices of smartphones and tablets. The cut may also reduce costs for some imported electronics purchased for personal use.

Leather goods

The government has proposed duty-free imports of certain inputs to promote leather exports. This may lower prices of leather products in the domestic market and offer relief to exporters facing pressure from high US tariffs.

Aircraft parts, EV batteries and solar panels

In a bid to strengthen India’s aviation ecosystem, basic customs duty has been exempted on parts and components required to manufacture civilian and training aircraft. Reduced tariffs will also bring down costs of electric vehicle batteries and solar panels in the 2026-27 fiscal year.

Here is a list of what gets Costlier:

Luxury watches and imported alcohol

Luxury watches and imported liquor will cost more following changes in customs duties.

Coffee-related equipment

The budget has proposed removal of exemptions on coffee roasting, brewing and vending machines.

Fertilisers

Sitharaman has proposed withdrawal of import fee exemptions on ammonium phosphate and ammonium nitro-phosphate, key inputs used in manure and complex fertilisers.

Tobacco products

Prices of cigarettes, pan masala and similar tobacco products will rise due to higher excise duties and the introduction of a new cess.

Imported umbrella, soap, detergent

The basic customs duty on potassium hydroxide will go up to 7.5 % from nil, increasing input costs for industries such as chemicals, soaps, detergents and batteriesy.

The duty on umbrellas (other than garden umbrellas) has been revised from a flat 20% to 20% or Rs 60 per piece, whichever is higher, in a move to curb low-priced imports.

Market trading

Trading in futures and options will also become more expensive. The Securities Transaction Tax (STT) has been increased, adding to costs for market participants.

Industrial machinery and filming equipment

Exemptions on import duties have been revoked for certain industrial machinery where domestic manufacturing capacity is considered adequate. While intended to promote local industry, this could raise costs for businesses that relied on cheaper imports.

Imported television equipment, cameras and other filming gear are also set to become more expensive.