Budget 2025: What got cheaper and costlier? Check full list

Finance Minister Nirmala Sitharaman presented her eighth consecutive union budget on Saturday, February 1 for the 2025-26 fiscal year. This was also the second budget under Prime Minister Narendra Modi’s third term.

The finance minister announced changes in the basic customs duty (BCD) on products across sectors. Here is a list of goods which have become cheaper and more expensive due to this custom duty restructuring.

“My proposals relating to Customs aim to rationalise tariff structure and address duty inversion. These will also support domestic manufacturing and value addition, promote exports, facilitate trade and provide relief to common people,” Nirmala Sitharaman said during her address to the Lok Sabha.

Here is what got cheaper due to the 2025-26 Budget:

• 36 lifesaving drugs and medicines

To provide relief to cancer patients and those with chronic illnesses, the finance minister added 36 lifesaving drugs to the list of medicines fully exempted from Basic Customs Duty (BCD). Additionally, six lifesaving medicines were given concessional customs duty of 5%.

The budet also proposes to include 37 more medicines along with 13 new patient assistance programmes. Furthermore, drugs and medicines under the Patient Assistance Programmes run by pharmaceutical companies were fully exempted from BCD, provided that patients can get the medicines free of cost.

• Motorcycles with engine capacity not exceeding 1600 CC

BCD on motorcycles with engine capacity of not more than 1600 cc was reduced from 50% to 40%.

• Bikes with engine capacity of 1600 CC and above

Custom duty on bikes with an engine capacity of 1600 CC and more will be reduced to 30% from the previous 50%.

• Synthetic flavouring essences

BCD on mixtures of odoriferous substances used in food or drink industries was decreased from 100% to 20%.

• Cobalt powder and waste

Fully exempted from BCD.

• Scrap of lithium-ion battery

No basic custom duty.

• Lead

Lead stood completely exempted from BCD.

• Zinc and 12 more critical minerals

Zinc and 12 others critical minerals were proposed to be fully exempted.

• Shuttle-less looms

Shuttle-less looms were added to the list of fully exempted textile machinery.

• Open Cells

The BCD on open cells was reduced to 5%. Additionally, open cells used in LCD/LED TVs stood fully exempted.

• EV batteries

35 capital goods for EV battery manufacturing were fully added to the list of fully exempted capital goods.

• Mobile batteries

28 capital goods for mobile battery manufacturing stood fully exempted from BCD.

• Ship manufacturing

The raw materials, components, consumables or parts for ship manufacturing will remain exempted for another 10 years.

• Carrier Grade ethernet switches

The BCD on carrier-grade ethernet switches was reduced to 10% from 20% to make it at par with non-carrier-grade ethernet switches.

• Wet Blue leather

Wet Blue leather stood fully exempted from BCD.

• Crust leather

Export duty on crust leather (hides and skins) reduced from 20% to zero per cent.

• Marine products

BCD on Frozen Fish Paste (Surimi) was reduced from 30% to 5% and on fish hydrolysate from 15% to 5%.

Here is what got more expensive this Budget:

• Knitted fabrics

Knitted fabrics will be covered by nine tariff lines from “10% or 20%” to “20% or ₹115 per kg, whichever is higher”.

• Interactive Flat Panel Display (IFPD)

BCD was increased from 10% to 20%.