As Union Budget 2025 settles in, all eyes are on the goods and services that have either become more expensive or affordable. One of the major highlights of the announcements was that under the new tax regime, individual taxpayers earning up to Rs 12 lakh per year will not be required to pay any income tax. This is seen as the government’s major move to give relief to the middle class by increasing the exemption limit and rejigging slabs. Considering a standard deduction of Rs 75,000, the minister stated that the annual nil tax limit for salaried staff would be Rs 12.75 lakh. Updated Income Tax Return (ITR-U) filing deadlines are now extended from two to four years.

Goods that will be Cheaper

Pharma Industry: The Union Finance Minister Nirmala Sitharaman announced that 36 cancer medicines that can save lives are now completely exempt from customs taxes. She revealed that the basic customs duty (BCD) on six other necessary medications will be lowered by five percent, lowering the cost of healthcare. For instance, in oncology, Daratumumab, which treats multiple myeloma, costs Rs. 7 lakh a dose, while Atezolizumab, which treats various cancer disorders, costs Rs. 1.5 lakh per dose. Prices per dose might fall by Rs. 10,000 to Rs. 30,000 due to the exemption from customs duties. The exemption also covers cardiovascular therapies, including Alirocumab and Evolocumab that keep the cholesterol levels in check, Teclistamab for multiple myeloma, and Polatuzumab Vedotin for lymphoma. The treatment cost for these therapies is expected to be reduced by 10 percent to 20 percent, depending on the medication. Further, there will be exemptions on immunology and cardiovascular medications, such as Novartis' Inclisiran (cholesterol management) and GSK's Spesolimab (inflammatory diseases), in addition to cancer and various uncommon diseases/ailments.

Automobile Industry: Crucial Minerals and Battery Production Materials

The electric vehicle schemes funding will be increased by 20 percent, from Rs 4,434.92 crore in 2024–2025 to Rs 5,322 crore in the latest budget. Likewise, FM denoted that the funding for the PM E-DRIVE Scheme, which supports EVs and public charging stations, will be raised by more than 114 percent to Rs 4,000 crore. Then, she listed out tax incentives, including a complete exemption from BCD on essential minerals like cobalt powder, lithium-ion battery waste and scrap, lead, zinc, and twelve other vital minerals. This will not only encourage localized manufacturing but also bring down the cost of these vehicles, especially if you are planning to switch to eco-friendly mobility; now is the time.

On the other hand, the FM has also suggested changes in the tax structure for motor vehicles.

The import taxes on fully built-up (CBU) motorcycles and luxury passenger automobiles have been changed, although the basic customs charge on motorcycles larger than 1600cc has been lowered.

 

This will impact pricing in the premium car market.

Leather & Textile Industry

Wet blue and crust leather imports are exempt from BCD, helping with the local production of leather goods and footwear. Reforms have been enforced in cotton farming, and new incentives have been established for sustainable textiles. As a result, leather jackets, shoes, and belts will be less expensive.

Consumer Durables

The minister announced a deduction of five percent for LED and LCD displays, considering a reduction in BCD on open cells and critical components. The BCD on smartphones, chargers, and printed circuit board assemblies (PCBAs) has been lowered from 20 percent to 15 percent, which is one of the biggest reductions. It is finally time to move that iPhone from your wishlist to the buying list, as the latest move is aimed at lowering production costs and increasing accessibility to gadgets, Android smartphones, and iPhones. Additionally, the government granted a complete exemption from customs charges on open cells used in LED and LCD TV panels for television manufacturers.

Marine & Fisheries Industry

The FM proposed providing the fisheries industry the largest annual budgetary support ever, with Rs. 2,703.67 crores. This includes the Pradhan Mantri Matsya Sampada Yojana allocation of Rs 2,465 crore for 2025–2026, which went up by 4.8 percent over the Rs 2,352 crore allocated for the initiative in 2024–2025.

The FM emphasized bringing a framework for the sustainable harnessing of fisheries from the High Seas and Exclusive Economic Zone (EEZ), particularly on the Lakshadweep and A&N Islands. Given that India has an 8,118-kilometer coastline, an EEZ of 20 lakh sq km, and an estimated marine potential of 53 lakh tonnes (2018), the marine fishing industry provides a living for 50 lakh people. This presents a huge opportunity to harvest highly prized tuna and tuna-like species in the Indian EEZ, especially around Andaman & Nicobar and Lakshadweep Islands. Additionally, a drop in import duties from 15 percent to five percent on fish hydrolysate, a crucial component used in producing aquafeed, was announced to boost the Indian shrimp farming sector internationally. These announcements are directed towards improving and boosting exports by reducing production costs and raising farmers' income and profit margins.

Goods That Will be Expensive Hereon

While the FM announced the slashing of taxes on some goods, she also announced the raising of taxes on other goods, which will now be more expensive than they were previously. Here are some items that could be charged higher in the coming days.

Certain Commodities in the Manufacturing and Technology Industries

Certain commodities, especially those in the manufacturing and technology industries, are expected to become more expensive, even if customs duties on a number of necessities will be reduced or eliminated. One of the items that will be more expensive is interactive TV. The center suggested raising the BCD of interactive flat-panel screens from 10 percent to 20 percent. To ensure faster and more effective customs clearance for companies, the center set a two-year time limit for provisional assessments. Some industries that deal with imports and exports will be impacted by this shift.