Budget 2026-27: What gets cheaper and costlier? Check full list

Union Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget on Sunday, February 1, for the 2026-27 fiscal year.

From foreign trips to umbrellas, here is everything that became cheaper and dearer this Budget.

“My proposals for Customs and Central Excise aim to further simplify the tariff structure, support domestic manufacturing, promote export competitiveness, and correct inversion in duty,” Nirmala Sitharaman said during her address to Parliament.

Here is what got cheaper due to the 2026-27 Budget:

Furthermore, seven rare diseases were added for the purpose of exemption from import duties on personal imports of drugs, medicines, and Food for Special Medical Purposes (FSMP) used in their treatment.

Overseas tour programme packages, including expenses for travel or hotel stay or boarding, lodging, or any similar or related expenditure, saw a tax collected at source (TCS) reduction from 5% on amounts aggregating up to ₹10 lakh and 20% on amounts exceeding ₹10 lakh to 2%.

In a bid to rationalise the customs duty structure for goods imported for personal use, the tariff rate on all dutiable goods imported for personal use was reduced from 20% to 10%.

The Finance Minister proposed to increase the limit for duty-free imports of specified inputs used for processing seafood products for export, from the current 1% to 3% of the FOB (free on board) value of the previous year’s export turnover.

“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,” the Finance Minister stated.

The Finance Minister proposed to exclude the entire value of biogas while calculating the Central Excise duty payable on biogas-blended CNG.

The TCS on the sale of tendu leaves was reduced from 5% to 2%.

The import of capital goods required for the processing of critical minerals in India was given a basic customs duty exemption.

The basic customs duty on components and parts required for the manufacture of civilian, training, and other aircraft.

It also proposed to exempt basic customs duty on raw materials imported for the manufacture of parts of aircraft to be used in maintenance, repair, or overhaul requirements by units in the defence sector.

“To deepen value addition in the consumer electronics sector,” the FM proposed to exempt basic customs duty on specified parts used in the manufacture of microwave ovens.

The basic customs duty (BCD) exemption given to capital goods used for manufacturing Lithium-Ion Cells for batteries was extended to those used for manufacturing Lithium-Ion Cells for battery energy storage systems.

Here is what got more expensive this Budget:

The TCS on the sale of liquor for human consumption, along with scrap and minerals, was increased from 1% to 2%.

“To continue weeding out long continuing customs duty exemptions, I propose to remove certain exemptions on items which are being manufactured in India or where the imports are negligible,” the Finance Minister said.

Umbrellas, excluding garden umbrellas, will attract a customs duty of 20% or ₹60 per piece (whichever is higher), from the earlier 20%. Furthermore, the customs duty on its parts, trimmings and accessories was increased to 10% or ₹25 per kg (whichever is higher), compared to 10% earlier.