Full List of What gets cheaper, what gets expensive in Union budget 2025: While many essential items will see a reduction or exemption in customs duties, some goods are set to become costlier, particularly in the tech and manufacturing sectors.
What gets cheaper, what gets expensive in Union budget 2025 Full List: The Union Budget 2025 introduced several changes to customs duty, benefiting various sectors. From medicine to industrial goods, here are the key proposals that aim to provide relief and boost growth in critical sectors, as well as the items that will now become costlier.
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Items That Got Cheaper
The government has proposed exemptions and reductions in Basic Customs Duty (BCD) to make several essential products more affordable, especially in the healthcare and manufacturing sectors.
Exemption for Lifesaving Drugs and Medicines
- 36 Cancer and Rare Disease Drugs: The Union Budget 2025 proposes to exempt 36 drugs used in cancer treatment and for rare diseases from Basic Customs Duty. This measure is expected to reduce the financial burden on patients and improve access to life-saving medicines.
- 37 More Medicines Exempted: An additional 37 medicines will also be exempt from BCD, providing further relief to the healthcare sector. These exemptions are in line with the government’s efforts to ensure affordable healthcare for all.
Support for the Manufacturing Sector
- Critical Minerals Exemption: The government has proposed to fully exempt cobalt products, LEDs, zinc, lithium-ion battery scrap, and 12 other critical minerals from Basic Customs Duty. This exemption aims to reduce the cost of raw materials essential for manufacturing industries like electronics and battery production.
- Shipbuilding Raw Materials: Raw materials for manufacturing ships will be exempted from BCD for the next 10 years, encouraging growth in the maritime sector and facilitating the ‘Make in India’ initiative.
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Promotion of Handicraft Exports
To further support the export of handicrafts, the government has announced a scheme to promote these exports, making handicrafts more competitive in the global market.
Exemption for Leather Products
- Wet Blue Leather: The government will fully exempt wet blue leather from Basic Customs Duty, helping the leather industry by reducing input costs for manufacturers.
Fish Pasteurii
The customs duty on fish pasteurii will be reduced from 30% to 5%, making it more affordable for processing and distribution, benefiting the food and agriculture sectors.
Items That Got Costlier
While many essential items will see a reduction or exemption in customs duties, some goods are set to become costlier, particularly in the tech and manufacturing sectors.
Increase in Customs Duty on Interactive Flat Panel Displays
The government has proposed increasing the Basic Customs Duty on interactive flat-panel displays from 10% to 20%. This measure aims to address the inverted duty structure and level the playing field for domestic manufacturers of such products.
Provisional Assessment Time Limit
The government has introduced a time limit of two years for provisional assessments, which will ensure quicker and more efficient customs clearance for businesses. This change will impact certain industries dealing with imports and exports, making the process more transparent and predictable.
Other Changes in Tariff Structure
- Rationalization of Tariff Rates: The Budget also proposes the removal of seven tariff rates, in addition to the seven rates removed in the 2023-24 Budget. This rationalization is part of the ongoing effort to streamline the customs tariff structure and make trade more efficient.
- Social Welfare Surcharge Exemption: The Social Welfare Surcharge will be exempted on 82 tariff lines that are subject to a cess, reducing the overall tax burden on businesses and industries that deal with these goods.
Impact on the Market
The proposed changes are expected to have a significant impact on various sectors. Exemptions on medicines and raw materials will lower costs in the healthcare and manufacturing industries, particularly in shipbuilding and electronics. The introduction of a scheme to promote handicraft exports is a positive step towards supporting India’s traditional industries.
However, the increase in customs duties on interactive flat-panel displays could lead to higher prices for certain technological products, which may affect both businesses and consumers in the tech space.
The Union Budget 2025 presents a mixed bag of customs duty changes. On one hand, it aims to reduce the cost of essential goods like medicines and raw materials, while on the other, it seeks to correct the inverted duty structure in certain sectors. The changes to the customs tariff structure are in line with the government’s broader objective of making India a more competitive and self-reliant economy, supporting both manufacturing and export growth.
