NEW DELHI: Union finance minister Nirmala Sitharaman presented the Union Budget 2026-27 on Sunday amid rising global uncertainty regarding tariffs from the United States.The Budget proposals draw a clear line between items that may turn cheaper for consumers and sectors that could feel the pinch. On the relief side, the government has moved to lower costs for sports equipment, leather goods, cancer medicines and seafood through policy support, duty-free imports and customs exemptions, aiming to boost domestic sectors and ease the burden on patients and producers.
Budget 2026: Individual Investment Limit For Overseas Residents Doubled To 10%, Sitharaman Announces
In contrast, trading activity and certain corporate cash-distribution routes are likely to become costlier following proposed changes to buyback taxation, the securities transaction tax (STT) and tax collected at source (TCS), signalling a tougher stance on tax arbitrage and compliance.
Products that may get cheaper:
- Sports equipment: Sitharaman proposed the launch of ‘Khelo India Mission’ which would focus on employment, skilling and job opportunities in the world of sports. With this, sports equipment are expected to get better. “The Sports Sector provides multiple means of employment, skilling and job opportunities. Taking forward the systematic nurturing of sports talent which is set in motion through the Khelo India programme, I propose to launch a Khelo India Mission to transform the Sports sector over the next decade,” she said.
- Leather goods: The finance minister announced duty-free imports of specific inputs currently available for exports of leather. “I also propose to allow duty-free imports of specified inputs which is currently available for exports of leather or synthetic footwear to exports of shoe uppers as well,” she said.
- Cancer medicines: Sitharaman announced customs duty exemption on 17 cancer medicines and added 7 rare diseases for relief for patients. “To provide relief to patients, particularly those suffering from cancer, I propose to exempt basic customs duty on 17 drugs or medicines. I propose also to add 7 more rare diseases for the purposes of exempting import duties on personal import of drugs, medicines and food for special medical purposes used in their treatment,” she said.
- Sea food: Centre announced duty-free fish catch beyond territorial waters to support the fishermen community.
- Microwave ovens: Government announced exemption from basic customs duty on specified parts used in the manufacture of microwave ovens.
- Solar panels: In the energy sector, the government has extended the basic customs duty exemption on capital goods used to manufacture lithium-ion battery cells, and has also removed basic customs duty on the import of sodium antimonate used in making solar glass. Thus, solar panels may get cheaper.
- EV batteries: The government announced that it would continue to waive import duty on machinery used to make lithium-ion battery cells meant for energy storage systems, helping reduce manufacturing costs and boost domestic battery production.
- Personal use imports: In an effort to enhance ease of living, Centre announced that the import duty on all dutiable goods brought in for personal use will be cut from 20% to 10%.
- Travelling abroad: The tax collected at source on overseas tour packages has been cut to 2% from the earlier rates of 5% and 20%, with no minimum amount limit. This means means travellers will have to pay less money upfront when booking foreign trips.
- Cost of sending money abroad for education and treatment: TCS on money sent abroad for education and medical treatment under the (Liberalised Remittance Scheme) LRS has also been reduced from 5% to 2%. Cutting TCS under the LRS for education and medical expenses to 2% reduces the immediate cash outgo for families sending money abroad for studies or treatment.
What may get costlier:
- Trading: Trading and some corporate cash-distribution channels may get more expensive as the government proposed changes to buyback taxation, the securities transaction tax (STT), and tax collected at source (TCS) on selected goods—underscoring a stronger drive to limit tax arbitrage and tighten compliance.
