The Union Budget 2025 – What’s Cheaper and What’s Costlier? An In-Depth Breakdown! 💰📊

Finance Minister Nirmala Sitharaman’s Union Budget 2025 is here, and it’s packed with both exciting changes and challenging adjustments that will have a significant impact on businesses, industries, and consumers alike. With a major focus on healthcare, manufacturing, agriculture, and export growth, this year’s budget lays the foundation for a self-reliant and competitive India. But, like all budgets, some things are bound to get cheaper, while others will become costlier. Let’s dive deep into the full list of changes!

What’s Cheaper in the Union Budget 2025? 🏷️

The government has introduced several relief measures, especially in the healthcare, manufacturing, and agriculture sectors. Let’s look at the key areas where costs are set to reduce, benefiting both consumers and industries across India.

1. Lifesaving Drugs and Medicines 💊

• 36 Cancer & Rare Disease Drugs: In a major step towards improving access to healthcare, the Union Budget 2025 has exempted 36 drugs used in the treatment of cancer and rare diseases from Basic Customs Duty (BCD). This move is expected to significantly lower the financial burden on patients, especially those in need of critical care. 🙏

• 37 Additional Medicines: Along with cancer and rare disease drugs, 37 more medicines used for treating various ailments will also be exempted from customs duties. This exemption aligns with the government’s vision of providing affordable healthcare for all, thus making medicines more accessible and affordable for the common man. 🏥

2. Boost for the Manufacturing Sector ⚙️

• Critical Minerals Exemption: The government has proposed a full exemption of Basic Customs Duty (BCD) on essential raw materials like cobalt products, lithium-ion battery scrap, and zinc. This move will lower costs for manufacturing industries, particularly those in electronics, battery production, and other high-tech sectors that rely on these materials. 🔋

• Shipbuilding Raw Materials: The maritime sector will also see benefits, with the government exempting raw materials needed for shipbuilding from BCD for the next 10 years. This will support the ‘Make in India’ initiative and drive growth in the shipbuilding industry, making India a global leader in maritime manufacturing. 🚢

3. Leather Industry Support 👞

• Wet Blue Leather Exemption: The leather industry, a significant contributor to India’s economy, will receive a boost through a complete exemption of wet blue leather from customs duties. This will reduce input costs for leather manufacturers, making Indian leather products more competitive in the global market. 🌍

4. Agriculture and Fish Processing 🐟

• Frozen Fish Paste (Surimi): In a move that benefits the food processing and agriculture sectors, the customs duty on fish pasteurii will be reduced from 30% to 5%. This will not only make processed fish products more affordable but also aid in exporting these goods to global markets. 🐟

5. Promotion of Handicraft Exports 🪔

• The Union Budget 2025 has introduced a new scheme aimed at promoting handicraft exports. This will make Indian crafts more competitive in international markets, providing a significant boost to the country’s traditional industries and helping preserve India’s rich cultural heritage.

  

  
  

  What’s Costlier in the Union Budget 2025? 📈

While there are several reductions in customs duties and exemptions, certain sectors are facing increased costs as a result of changes in tariff structures. Here’s a look at some key areas where prices are set to rise:

1. Interactive Flat Panel Displays 📱

• Customs Duty Hike: The Basic Customs Duty (BCD) on interactive flat-panel displays will be increased from 10% to 20%. This move aims to address the inverted duty structure and level the playing field for domestic manufacturers. While this will support local manufacturing, it could result in higher prices for such products, which could affect businesses relying on these displays for presentations, education, and other sectors. 💻

2. Changes in the Tariff Structure 📊

• Provisional Assessment Time Limit: A new time limit of 2 years for provisional assessments under the Customs Act will be implemented. This change is aimed at ensuring quicker and more efficient customs clearance for businesses. However, it could lead to some transitional complexities for companies dealing with imports and exports. ⏳

• Rationalization of Tariff Rates: The Union Budget 2025 has also proposed the removal of seven tariff rates, simplifying the tariff structure. This is part of an ongoing effort to streamline India’s customs tariff system and promote smoother trade. While this could ease administrative burdens for businesses, it could also lead to price hikes for some products due to changes in the duty structure. 📉

3. Exemption on Social Welfare Surcharge 🚫

• Social Welfare Surcharge Exemption: A Social Welfare Surcharge will be exempted on 82 tariff lines subject to a cess. While this will reduce the overall tax burden on businesses dealing with these goods, the restructuring of tariffs could have mixed effects on the final price of certain products. ⚖️

Key Highlights from Union Budget 2025 🌟

While there are some areas where prices are rising, the Union Budget 2025 focuses heavily on sectors that drive growth, innovation, and employment. Let’s take a quick look at the broader themes of this year’s budget:

1. Focus on Empowering the Middle Class 💡

• The new tax regime has some great news for the middle class! There will be no income tax up to an income of Rs 12 lakh. This will provide significant relief to families and encourage greater spending power, helping to stimulate consumption in the economy. 🏡💵

2. Agricultural Reforms 🌾

• The PM Dhan-Dhaanya Krishi Yojana has been designed to support 1.7 crore farmers in 100 districts with low agricultural productivity. This program will help enhance crop intensity, promote sustainable farming practices, and improve irrigation and post-harvest storage facilities. 🌱

3. Strengthening the Start-up Ecosystem 🚀

• To further fuel innovation, the government has allocated Rs 10,000 crore for a Fund of Funds to support start-ups. This will provide a significant boost to the start-up ecosystem, ensuring that entrepreneurs and innovators have access to the capital they need to grow. 🏢

4. Infrastructure and Housing Boost 🏗️

• The SWAMI Fund-2 worth Rs 15,000 crore will help expedite the completion of 1 lakh dwelling units, providing relief to the housing sector. Furthermore, the Urban Challenge Fund of Rs 1 lakh crore will fund redevelopment projects in key urban centers, enhancing infrastructure and improving quality of life in cities. 🌆

5. Focus on Skill Development 📚

• 5 National Centres for Skilling will be established, with a focus on providing global expertise to India’s workforce. This is part of a wider effort to ensure that India’s youth is ready for future challenges and can compete on the global stage. 🧑‍🏫

  

Conclusion: A Mixed Bag for Consumers and Industries 📦

The Union Budget 2025 brings good news for several sectors, including healthcare, manufacturing, agriculture, and start-ups. With a focus on reducing costs for lifesaving drugs, raw materials, and handicraft exports, this budget aims to provide significant relief to critical industries and vulnerable sections of society. 🌍

On the flip side, certain sectors like technology may face increased costs, particularly with interactive flat-panel displays and changes to tariff structures. 📊 But overall, the budget focuses on sustainable growth, self-reliance, and inclusive development, setting the stage for a more competitive India in the global market. 🚀