The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, outlines significant changes affecting the prices of various goods. Key focus areas include tax reforms, import duty adjustments, and measures to enhance economic stability. Discover which items have become cheaper or more expensive as a result of these policy shifts.
Table of Contents
Things Becoming Cheaper As per Union Budget 2024-25 Announcements
1. Mobile Phones and Accessories:
Basic customs duty reduced to 15% on mobile phones, parts, batteries, and chargers, promoting affordability and local manufacturing.
2. Precious Metals:
Customs duty on gold and silver reduced to 6%, and platinum to 6.4%, aimed at boosting retail demand.
3. Cancer Medicines:
Full exemption from customs duty on three major cancer drugs: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.
4. X-ray Equipment:
Exempted from basic customs duty, making medical diagnostics more affordable.
5. Fish and Aquaculture Products:
Customs duty reduced to 5% on fish, broodstock, shrimp, polychaete worms, and fish feed.
6. Essential Metals and Minerals:
Removal of basic customs duty on ferro nickel, blister copper, and 25 critical minerals, supporting industrial production.
7. Solar Panels:
Expanded list of exempted items for manufacturing solar panels, encouraging renewable energy growth.
8. Leather Goods:
Customs duty reduction to boost the leather industry and make products more affordable.
9. Footwear and Textiles:
Reduced customs duty to support the sectors, enhancing competitiveness and consumer choice.
These measures are part of the government’s strategy to enhance economic growth, support key industries, and make essential goods more accessible to the public.
Things Becoming Costlier As per Union Budget 2024-25 Announcements
1. Plastic and Related Goods:
Increased customs duty on plastic products, aiming to encourage domestic production and reduce imports.
2. Ammonium Nitrate:
Customs duty raised from 7.5% to 10%, impacting industries reliant on this chemical.
3. Telecom Equipment:
Customs duty increased from 10% to 15%, focusing on boosting local manufacturing and self-reliance in the telecom sector.
4. Imported Garden Umbrellas and Laboratory Chemicals:
Higher duties imposed to promote domestic alternatives and support local businesses.
These changes reflect the government’s efforts to enhance domestic industry competitiveness and reduce dependency on imports.
Related Read: List of Schemes Announced in Budget 2024
Conclusion
The Union Budget 2024 reflects the government’s strategic approach to balancing economic growth with domestic industry support. By reducing customs duties on essential goods like mobile phones and cancer medicines, the budget aims to make crucial items more affordable. Simultaneously, increased duties on imports such as plastic and telecom equipment encourage local manufacturing and innovation. These measures are designed to strengthen India’s economic resilience and promote self-reliance while addressing consumer needs.
FAQs
1. Will gold get cheaper after budget?
Finance Minister Nirmala Sitharaman announced that the customs duties on gold and silver will be reduced from 15% to 6%
2. What impact will the increased customs duties on telecom equipment have?
The rise in customs duty on telecom equipment from 10% to 15% is intended to support domestic manufacturing and innovation in the telecom sector. This may lead to higher costs for imported equipment but could benefit local producers.
3. How does the budget affect the cost of solar panels and related items?
The expansion of the list of exempted items for manufacturing solar panels is designed to lower production costs and support the growth of the renewable energy sector. This could make solar energy solutions more affordable for consumers and businesses.
4. How has the Union Budget 2024 affected the cost of mobile phones and accessories?
The customs duty on mobile phones, chargers, and related accessories has been reduced to 15%. This reduction aims to make these essential electronic items more affordable for consumers.
5. How will the changes in customs duty affect essential metals and minerals?
The budget has removed the basic customs duty on ferro nickel, blister copper, and 25 critical minerals. Additionally, the duty for manufacturing resistors (oxygen-free copper) has been eliminated. These changes are designed to reduce production costs and support industries relying on these materials.
6. How will the Budget 2024 affect the prices of electronic items?
The Budget 2024 aims to make electronic items more affordable. The Finance Minister announced a reduction in customs duties on components like mobile phone chargers and circuit boards. This move is expected to lower production costs, leading to more competitive pricing for consumers. Additionally, initiatives to boost local manufacturing could further drive down prices over time.
7. What should consumers expect in the coming months?
Consumers can expect price fluctuations on various goods and services as the new tax rates are implemented across sectors.
