
The Union Budget for 2026–27, presented on February 1, 2026, outlines several adjustments to customs duties and tax rates across multiple sectors. The Finance Minister announced reductions aimed at lowering costs for medicines, consumer goods, clean‑energy components, and certain industrial inputs.
At the same time, specific goods such as alcohol, cigarettes, and minerals will see higher costs due to increased taxation. The proposed changes are part of wider budget measures focused on domestic industry support, public welfare, and sectoral development across the economy.
The budget includes several measures intended to reduce prices for essential and frequently used items. Personal‑use imported goods will become cheaper with lower duties designed to improve affordability for travellers and consumers.
| No | Item Name |
| 1 | Personal use imported goods |
| 2 | 17 drugs or medicines for cancer patients |
| 3 | Drugs, medicines and FSMP for 7 rare diseases |
| 4 | Leather items (footwear) |
| 5 | Textile garments |
| 6 | Seafood products |
| 7 | Tour package (overseas) |
| 8 | Lithium‑Ion cells for batteries |
| 9 | Solar glass |
| 10 | Critical minerals |
| 11 | Biogas‑blended CNG |
| 12 | Aircraft manufacturing components |
| 13 | Microwave oven |
| 14 | Foreign education |
Selected products will see increased taxation as part of the revised duty structure. Alcohol is expected to become more expensive due to an increase in the tax collected at source (TCS) rate.
| No | Item Name |
| 1 | Alcohol |
| 2 | Cigarettes |
| 3 | Nuclear power projects components |
| 4 | Minerals, iron ore, coal |
The pricing changes outlined in the Budget are structured to influence both consumption patterns and industrial input costs. While reductions focus on improving access to critical goods and supporting priority sectors, increases are centred on products associated with health concerns and specific industrial categories.
These budget measures will take effect upon approval by both the Lower and Upper Houses of Parliament. Entities across sectors may update sourcing, pricing, and compliance processes once final notifications are issued.
The Union Budget 2026 reduces duties on a wide range of consumer, medical, industrial, and clean‑energy products while increasing taxes on alcohol, cigarettes, and selected raw materials.
These changes aim to balance affordability with regulatory and sectoral priorities. The final impact on markets and consumers will follow once the budget proposals receive parliamentary approval and are formally implemented.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 2, 2026, 12:40 PM IST

Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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