GUWAHATI: Finance Minister Nirmala Sitharaman presented Modi 3.0’s second Union Budget on Saturday, February 1, with a focus on income tax revisions, macroeconomic stability, and ease of doing business.
Among the key announcements were price reductions on several essential goods, aimed at supporting various sectors and consumers.
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What’s Become Cheaper?
Several items will now be more affordable due to reductions in customs duties and tax exemptions, benefiting industries like healthcare, electronics, textiles, and shipbuilding.
-Life-saving medicines – 36 critical drugs, including those for cancer and chronic diseases, are now fully exempt from basic customs duty.
-Electronics – Customs duty on open cell displays, touch glass sheets, and touch sensors for LED/LCD TVs has been slashed from 15% to 5%.
-EV & Mobile Batteries – 35 new goods for EV battery production and 28 new items for mobile phone battery manufacturing have been added to the duty-exempt list.
-Fish & Seafood – Customs duty on frozen fish paste (surimi) for exports has been reduced from 30% to 5%, while fish hydrolysate used in aquatic feed has seen a cut from 15% to 5%.
-Synthetic Flavouring Essences – Import duties on odoriferous substances used in food and beverage industries reduced from 100% to 20%.
-Recyclable Waste & Lithium Scrap – Customs duties on lithium-ion battery waste, lead, zinc, antimony, cobalt, tin, and other metals have been eliminated.
-Cobalt Powder – Duty removed, down from 5% to nil.
-Wet Blue Leather – Duties eliminated (previously 10%).
-Textile Industry – Customs duties on shuttle-less looms (rapier looms, air-jet looms) have been abolished (earlier 7.5%).
-Mobile Equipment – Duties on camera module components, connectors, headsets, microphones, USB cables, and fingerprint sensors for mobile phones have been removed (earlier 2.5%).
-Space & Satellite Equipment – Import duties on materials for satellite launch vehicles, ground stations, spares, and consumables reduced to zero.
-Shipbuilding – Duty exemption extended for 10 years on ships and their parts.
-Motorcycle Imports – Reduced customs duty:
Engines ≤1600 CC: 40% (previously higher)
Semi-knocked down (SKD) units: 20%
Completely knocked down (CKD) units: 10%
Engines >1600 CC: 30%
What’s Become Costlier?
Knitted Fabrics – Customs duty raised from 10% to 20%.
Interactive Flat Displays – Import duty increased from 10% to 20%.
Social Welfare Surcharge – Exemption withdrawn on 82 tariff lines, increasing costs on certain imports.
Further updates on Budget 2025-26 are expected as new policies take effect.