What’s Getting Cheaper & Costlier in Budget 2026: A Simple Money Guide

5 minutes read

05 Feb 2026

Budget 2026 isn’t just numbers. It changes what you pay every day. Find out what’s getting cheaper, what’s turning costlier, and what it means for your wallet.

Market Update

Introduction

Every Union Budget does more than outline government spending, it quietly shapes what you pay in everyday life. From the phone you upgrade to medicines, foreign travel, and even trading costs; many expenses are influenced by tax and duty changes announced in the Budget. On February 1, 2026, Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27, bringing not just big infrastructure and manufacturing plans, but also key tweaks to customs duties and taxes.

So instead of getting lost in policy jargon, here’s the simple lens: what’s getting cheaper, what’s getting costlier, and how it affects your wallet.

What’s getting cheaper in Budget 2026

Healthcare

Treatment for cancer and certain rare diseases is set to become more affordable. Prices of 17 cancer medicines and drugs used for 7 rare diseases are expected to come down, along with special nutrition products (FSMP) needed for medical care.

This is because the government has removed basic customs duty on these imported medicines and extended tax exemptions to Food for Special Medical Purposes (FSMP), directly lowering their cost.

Electronics

Mobile phones and some home appliances may see more stable or slightly lower prices over time.
Customs duty exemptions have been extended on key mobile phone components, and microwave oven parts have been made duty-free, reducing manufacturing and import costs.

Overseas education and travel

Studying abroad, overseas medical treatment, and foreign tour packages will cost less.
TCS on foreign education remittances has been cut from 5% to 2%, with no TCS up to ₹10 lakh. TCS on overseas medical treatment is now 2%, and overseas tour packages attract 2% instead of 5–20% earlier. For example, sending ₹5 lakh abroad for education now blocks ₹10,000 instead of ₹25,000, freeing up ₹15,000 for actual expenses.

Clean energy and EV batteries

EV batteries, solar equipment, and energy storage systems are likely to become cheaper over time.
Customs duty has been removed on key lithium materials, concessional duty on lithium-ion cells and battery manufacturing machinery has been continued, and some solar glass components have been made duty-free.
This is supported by higher government investment, with total capex raised to ₹12.2 lakh crore, including ₹32,915 crore for renewable energy and a ₹20,000 crore clean-tech outlay.

Leather & textiles

Clothing and leather products may become more affordable. Customs duty has been reduced on specified textile inputs and Wet Blue leather, lowering raw material costs for manufacturers.

Sports equipment

Sports goods are expected to become more affordable. The government has provided customs duty relief on selected sports equipment to encourage wider participation among young athletes. So, if you’re a fitness enthusiast, watch out!

Other goods (solar panels, aircraft parts & personal imports)

Solar components, aircraft parts, and certain household appliances may get cheaper.

Aircraft components for civilian manufacturing and defence MRO have been made duty-free.

Fish caught by Indian vessels in exclusive zones is now duty-free, and nuclear power components will remain duty-free till 2035.

For personal imports, the tariff on dutiable goods has been reduced from 20% to 10%.

What’s getting costlier?

Just like every budget, they’ve made few things costlier. Onto the list now:

F&O Trading

If you actively trade in futures and options, your transaction costs will rise.

Securities Transaction Tax (STT) on futures has increased from 0.02% to 0.05%, while STT on options has gone up from 0.1% to 0.15%.

For long-term investors, this doesn’t change much. But for frequent F&O traders, it adds quickly and can materially affect profitability, especially high-volume strategies.

Tobacco & Alcohol

Budget 2026 tightens taxes on cigarettes and tobacco by restructuring levies.

Cigarette prices could rise sharply due to higher excise duty and the introduction of a new capacity-based health and national security cess.

Pan masala taxation has been increased too, and TCS on alcohol for human consumption has doubled from 1% to 2%.

Daily-use and lifestyle items

Umbrellas (excluding garden umbrellas) now attract 20% duty or ₹60 per piece, whichever is higher. Umbrella parts and accessories face 10% or ₹25 per kg.

Coffee machines will also become costlier because some earlier exemptions have been withdrawn. Small category, yes but relevant for households and small businesses like cafés.

Minerals and Inputs

TCS on minerals like coal, lignite, and iron ore has increased from 1% to 2%.

When input costs rise, industries pass it forward into product prices, so this is one of those changes that may not hit you directly today but can show up indirectly across multiple categories over time.

What you should keep in mind

Income tax slabs remain unchanged, so if you were expecting new tax relief, you won’t find it here.

Income Tax Slabs (₹)	Income Tax Rate (%)
From 0 to 4,00,000	0%
From 4,00,001 to 8,00,000	5%
From 8,00,001 to 12,00,000	10%
From 12,00,001 to 16,00,000	15%
From 16,00,001 to 20,00,000	20%
From 20,00,001 to 24,00,000	25%
From 24,00,001 and above	30%

Bottom Line

The smartest way to use this Budget is to see how it affects your own spending. Track which items are getting cheaper, be cautious where costs are rising, and watch how prices change over the next few months because the real impact of the Budget shows not in policy papers, but in shop prices and your bank balance.

Note: This article is based on Union Budget 2026–27 announcements. For exact effective dates, product-level pricing, and personal tax impact, refer to official notifications or consult a qualified professional.