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Budget 2026: What Is Getting Affordable & What Is Getting Expensive?

Pragya Pathak

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Updated: 02-02-2026 at 3:30 PM

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500K+ Users

On 1st of February 2026, the Finance Minister of India, Smt Nirmala Sitharaman, presented the Union Budget for the year 2026-27 at the parliament. There are several changes introduced in the budget for this new year, and one of those changes is in the prices of some select goods and services. The revised Union Budget 2026 cheaper costlier items will have a major impact on the spending habits and finances of the people of India.

The decision to change the prices of several essential and luxury goods and services is very careful and not a random one. It is a very thought-out and calculated move by the government of India, which will push people toward investing and purchasing essential wellness-related items and luxury items from Indian brands.

Read the article to learn more about the changes introduced in the Budget 2026-27, specifically the Budget 2026 what gets cheaper and costlier list, and the kind of impact it will have on the people of India.

Overview

The table below summarises some key details about the Budget 2026 price changes that one should know.

Concerning	Budget 2026-27
Announced on	1st of February 2026
Changes	Price changes of several commodities and services
Objective	To make essential items cheap and health, and environmentally degrading items costly
Cheaper items	Medicines, treatment methods, electronic components, leather, marine sector equipment, etc.
Costly items	Alcohol, tobacco, coffee-related equipment, luxury goods from foreign brands, etc.

Budget 2026 Cheaper Items List

As per the Budget 2026, commodities and services that will be comparatively cheaper this year are mentioned below in detailed points for one's reference.

1. Necessity Goods And Medical Supplies

Medical treatments like chemotherapy will become more affordable as the Basic Customs Duty (BCD) has been removed from them.
Along with this, around 7 drugs related to the treatment of rare diseases and special medical foods will also be exempted from duty this year.
There is good news for diabetic people as well. The prices for insulin and other related significant medications will go down.

2. Electronic Goods

This year, following the budget, various goods will be expected from duty or import charges, like:

Connectors
PCBA
Battery covers
Wet Blue leather (used to make shoes and other leather-based accessories)
Equipment used to produce lithium-ion cells (these cells will specifically contribute to the reduced prices of Electric Vehicles)

Along with all these goods, Basic Customs Duty will be removed for specific parts used for producing domestic microwaves.

3. Services

There are changes introduced in the rate of Tax Collected at Source (TCS) for some specific services, such as:

TCS will be reduced to 2% for Overseas tour packages, which was previously between the range of 5 to 20%.
Tax collected at Source on educational and medical services will now be set at around 2%.

4. Tax Reliefs

With the introduction of the Budget 2026, no major changes have been introduced in the taxation system. Salaried individuals will continue to deposit a standard deduction worth Rs. 75, 000 under the New Tax Regime. Also, interest given by the Motor Accident Claims Tribunal will now be completely free from taxes.

Budget 2026 Costlier Items List

Following the changes in the Budget 2026, commodities and services that will become costly are as follows:

1. Luxury Goods

Luxury and high-end goods, such as watches, imported alcohol like premium spirits and wines, and photography and filming-related equipment, will be charged with increased duties and taxes. This is being done to protect the domestic brands of India so that, indirectly, people can shift to buying premium goods from the brands of their own nation.

2. Sin & Environmental Goods

The National Calamity Contingent Duty (NCOD) rates on sin goods, such as cigarettes, will be increased so that people can stop smoking, as it is a health-degrading habit. Also, plastics and other non-recyclable packaging materials and items will be charged more as they are not environmentally-friendly.

3. Lifestyle Habits

The prices of coffee-related equipment, like coffee machines used for roasting and brewing coffee, will also increase a bit as duty exemptions have been removed for this year, as mentioned in the budget.

4. Tax Rates

The Securities Transaction Tax (STT) will increase by 0.05% on Futures and 0.15% on Options. This will have a great impact on traders and investors.

Probable Impact Of The Price Changes Through Budget 2026

Budget 2026 full list cheaper costlier items will have a major impact on the people of India. The probable and expected impact is described below for one’s better understanding:

The prices of many essential goods and services will come down this year. This is a strategic move that should have a favorable impact on all the households of India. This also represents the government’s aim of not just being a revenue taker, but an entity that is focused on making the lives of people easier and more comfortable.
Duties and taxes have been removed from significant medical-related goods and services, like drugs and treatment procedures, so that people, especially those from low-income groups, can access and avail them and save their lives at the earliest.
Prices of sin goods, like alcohol and tobacco, have been raised so that people buy it less as they are health-degrading and dangerous. This aligns with the nation’s public health objectives and will also indirectly influence the spending habits of the citizens without the need to put rigid bans or prohibitions.

Also Read: RBI Mandates Two-Factor Authentication For Digital Payments From April 1, 2026

Conclusion

The price changes introduced through the Union Budget 2026-27 on several essential and luxury goods and services will have a major impact on the people of India. This year’s budget, indirectly or directly, is an attempt by the government of India to steer people toward health, wellness, and environmentally sustainable options and away from health-degrading items and purchasing luxury goods from foreign brands.

The Budget 2026 duty changes items list will make essential goods and services, like medical treatments and drugs, very affordable for all classes of society, especially those who come from low-income backgrounds. Only time will tell the real impact of these changes, but hopefully, the changes will have a good and transformative impact on people.

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