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Union Budget 2025: Major changes in customs duty; what gets cheaper and what will cost more

One of the notable aspects of this year’s budget is the significant shift in customs duties, aimed at benefiting both consumers and industries

Reported by:  PTC News Desk  Edited by:  Jasleen Kaur -- February 01st 2025 02:06 PM
Union Budget 2025: Major changes in customs duty; what gets cheaper and what will cost more

Union Budget 2025: Major changes in customs duty; what gets cheaper and what will cost more

Union Budget 2025: Union Finance Minister Nirmala Sitharaman on Saturday presented the much-anticipated Union Budget for 2025-26, laying out a comprehensive roadmap for India's continued economic growth and global competitiveness. As the government seeks to transform India into a "Viksit Bharat" (developed India), the budget focuses heavily on key sectors such as agriculture, MSMEs (Micro, Small, and Medium Enterprises), investment, and exports.

One of the notable aspects of this year’s budget is the significant shift in customs duties, aimed at benefiting both consumers and industries while addressing public health concerns. FM Nirmala Sitharaman outlined several measures where prices on selected goods will decrease, while others will become more expensive due to increased duties or the introduction of new taxes.


What's getting cheaper?

In a move that is expected to provide relief to various sectors, the government has proposed reductions in customs duties for several key products. Here’s a list of what will get more affordable:

Carrier Grade Internet Switches: These critical components will be cheaper, benefiting the IT and telecommunications sectors.

36 Life-Saving Medicines: To ensure better access to healthcare, customs duties on 36 life-saving medicines will be exempted, lowering costs for treatment options.

Scrap of Lithium-Ion Battery, Lead, Zinc, and 12 Critical Minerals: The government is also making it easier to import these materials, which are essential for manufacturing various technologies, especially in the electric vehicle sector.

Frozen Fish: A reduction in the customs duty will make frozen fish more affordable, benefitting the seafood industry.

Frozen Fish Paste (Surimi): Customs duty on frozen fish paste will be reduced from 30% to 5%, supporting the fishing industry.

Synthetic Flavouring Essences:  This will help industries that rely on these ingredients, including food and beverage sectors.

Leather Belts, Shoes, and Jackets:  These products will see a drop in customs duties, benefitting both consumers and manufacturers in the leather industry.

Marine Products: In line with promoting exports, the government has exempted customs duty on raw materials required for manufacturing ships for an additional 10 years.

Cobalt Products: These will be cheaper, supporting various industries including electronics and electric vehicle manufacturing.

What's getting costlier?

While there are several items set to become cheaper, the budget also proposes increases in duties on certain products:

Interactive Flat Panel Displays – These displays, commonly used in education and corporate sectors, will now come with higher costs due to an increase in duties.

Knitted Fabrics: The customs duty on knitted fabrics will rise, which could affect the textile and fashion industry.

- With inputs from agencies

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