The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, brought several new changes that could lighten the financial burden for both consumers and industries. Sitharaman had proposed customs rate reductions on a number of commodities, including cell phones, chargers and some cancer medications, in his Budget 2024 speech. Additionally, Sitharaman had suggested lowering the customs taxes on platinum to 6.4% and gold and silver to 6%. She also suggested eliminating blister copper and ferronickel’s basic customs charge (BCD).
Here’s a quick rundown of the key items that will become more affordable after the budget announcement:
1. Cancer & Chronic Disease Medicines
Good news for patients as 36 life-saving drugs will now be fully exempt from basic customs duties, making essential cancer and chronic disease treatments more affordable.
2. Electronic Goods
Cheaper electronic components as Basic Customs Duty (BCD) on open cells and other components used in electronics will be reduced to 5%, making electronic goods more affordable to both manufacturers and consumers.
3. Minerals
Lower costs for crucial minerals as BCD will be exempted for cobalt powder, waste and scrap of lithium-ion batteries, lead, zinc, and 12 other critical minerals. This is great for industries relying on these materials, potentially lowering production costs.
4. Electric Vehicles (EVs)
Boost for EV sector as the Budget 2025 proposes to exempt 35 additional goods for EV battery manufacturing and 28 goods for mobile phone battery manufacturing from basic customs duties. This will make EV manufacturing more affordable and help in accelerating the EV revolution.
5. Leather Goods
Cost reduction for leather products as wet blue leather will now be fully exempt from Basic Customs Duty. This could make leather goods more affordable for both consumers and manufacturers.
6. Surimi (Frozen Fish Paste)
Cheaper Surimi as the BCD on frozen fish paste (surimi) will be reduced from 30% to 5%, which will benefit the manufacture and export of surimi-based products, likely bringing down prices for consumers.
7. Handicrafts
Increased exports as the export period for handicrafts has been extended from six months to one year, and nine items have been added to the list of duty-free inputs. This will benefit handicraft exports and may make such products more affordable on the international market.
8. Textile Machinery
Cheaper textile machinery as two types of shuttle-less looms have been added to the list of fully exempted machinery, making it easier and cheaper to produce technical textile products like agro-textiles, medical textiles, and geo textiles.
9. Knitted Fabrics
Fabrics at lower prices as the BCD rate on knitted fabrics has been revised to “20% or 115 per kg, whichever is higher”, which will likely reduce the cost of production for textiles and promote affordable domestic production.
These measures in the Union Budget 2025 are set to make a range of products more affordable, benefiting both industries and consumers across various sectors.