3 min readNew DelhiUpdated: Feb 1, 2026 03:39 PM IST
Union Budget 2026: Finance Minister Nirmala Sitharaman announced the Union Budget 2026 at 11 am on Sunday, February 1. With the announcement, citizens are concerned about what could get costlier and are looking forward to what would now pinch their pockets less. As rising fuel prices over the past several years has burdened the common man, we now look forward to Income Tax concessions and reductions in taxes of goods and services, which might lead to an overall reduction of prices. Below we detail what would get cheaper and what would cost you more.
What Economic Survey 2025-26 revealed
The FM tabled the Economic Survey in the Parliament on Thursday, with Prime Minister Narendra Modi hailing it to represent India’s strong macroeconomic fundamentals, sustained growth momentum and the expanding role of innovation, entrepreneurship and infrastructure in nation-building. The Economic Survey for 2025-26 said the country is projected to grow by 6.8-7.2 per cent in the next financial year.
The Survey underscored the importance of inclusive development, with focused attention on farmers, MSMEs, youth employment and social welfare, PM Modi said.
The Budget announcement comes four months after the GST Council approved a two-tier rate structure of 5 and 18 per cent. With the new GST structure implemented on September 22, daily essentials, including hair oil, soaps, bicycles, life-saving cancer drugs, food items, life and health insurance policies, consumer goods, became cheaper. Other items such as luxury goods, automobile parts, vehicles, tobacco products, and sugary drinks were heavily taxed.
Union Budget 2026: What Gets Cheaper, What Gets Costlier
Aircraft components (civilian, training, other aircraft)
Coffee roasting, brewing, vending machines (from Feb 2, 2026)
17 drugs/medicines for cancer patients
Ammonium phosphate & Ammonium nitro-phosphate fertilizers
Essential drugs and imported medicines
Television equipment (from April 1, 2026)
Microwave parts
Cameras and film-making equipment (from April 1, 2026)
Specified inputs for leather/synthetic footwear manufacturing
Photographic, filming, sound-recording equipment
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Union Budget 2026: What gets cheaper?
Components used to manufacture civilian, training, and other aircrafts, microwave parts, essential drugs and imported goods, are likely to attract lower customs duty, the FM announced in her speech.
She also proposed to exempt basic customs duty on 17 drugs or medicines, including those used by cancer patients.
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In addition, the FM proposed to allow duty-free imports of specified inputs, thereby, promoting India’s exports of leather or synthetic
footwear.
Union Budget 2026: What gets costlier?
The government has removed tax exemptions, beginning February 2, 2026, on coffee roasting, brewing or vending machines used in the manufacture or processing of coffee, as Sitharaman highlighted in her speech.
Some fertilisers might also get expensive as the government removes fee exemptions on the import of Ammonium phosphate and Ammonium
nitro-phosphate — compounds used to produce manure and complex fertilisers.
The government also announced that exemptions on the import of television equipment, cameras and other equipment used in film-making will be removed, beginning April 1, 2026. Additionally, imported photographic, filming, and sound-recording equipment may also get expensive.
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