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Union Budget 2026: Winners and Losers from Customs Duty Changes
Finance Minister Nirmala Sitharaman’s Union Budget 2026-27 announced significant changes to customs duties and taxes across multiple product categories, creating clear winners and losers. From cancer medicines becoming duty-free to luxury watches and liquor facing higher taxes, the budget’s tariff rationalization reflects the government’s priorities of supporting domestic manufacturing, making essential items affordable, and discouraging conspicuous consumption.
Here’s a comprehensive breakdown of what became cheaper and what became costlier after Budget 2026.
What Got Cheaper: Relief for Consumers and Industries
1. Cancer Medicines ✅ MAJOR RELIEF
Change: Basic customs duty fully exempted on 17 cancer drugs and medicines.
Impact:
- Life-saving cancer therapies become more affordable
- Particularly benefits patients without comprehensive insurance
- Potential savings of 10-15% on imported oncology medicines
- Builds on Budget 2025’s exemption of 36 life-saving drugs
Who Benefits: Cancer patients, families dealing with catastrophic health expenses, hospitals importing advanced cancer treatments.
2. Rare Disease Medicines ✅ COMPASSIONATE RELIEF
Change: Seven more rare diseases added to the list for duty-free personal imports of drugs, medicines, and Food for Special Medical Purposes (FSMP).
Impact:
- Families dealing with ultra-rare conditions get financial relief
- Named patient imports become more affordable
- Specialized nutritional formulations for metabolic disorders become accessible
Who Benefits: Patients with rare diseases like Spinal Muscular Atrophy, genetic metabolic disorders, and other ultra-rare conditions.
3. Seafood ✅ FISHERIES BOOST
Change: Fish catch by Indian fishing vessels on high seas made free of duty.
Impact:
- Deep-sea fishing becomes more profitable
- Indian fishing vessels competitive internationally
- Reduces cost of marine protein
- Supports coastal fishing communities
Who Benefits: Commercial fishing industry, deep-sea fishing vessel operators, coastal communities, seafood exporters.
4. Foreign Education ✅ STUDENT RELIEF
Change: General reduction in customs duty on all goods imported for personal use from 20% to 10%.
Impact:
- Students studying abroad benefit when bringing educational materials, electronics, and personal items back to India
- Reduces cost burden on families supporting foreign education
- Simplified customs processing
Who Benefits: Students studying abroad, NRIs, international travelers.
5. Solar Energy Devices ✅ GREEN ENERGY PUSH
Change: Continued exemptions and reduced duties on solar panels, cells, and related equipment (continuing from previous budgets).
Impact:
- Solar installations become more affordable
- Supports India’s renewable energy targets
- Encourages rooftop solar adoption
- Benefits EV charging infrastructure using solar
Who Benefits: Solar panel installers, residential consumers installing rooftop solar, renewable energy developers.
6. Aircraft Parts ✅ AVIATION SECTOR SUPPORT
Change: Reduced customs duties on specific aircraft components and maintenance equipment.
Impact:
- Lower maintenance costs for airlines
- Supports MRO (Maintenance, Repair, Overhaul) industry development
- Encourages domestic aviation growth
Who Benefits: Airlines, aircraft maintenance companies, aviation industry.
7. Lithium Batteries ✅ EV ECOSYSTEM BOOST
Change: Reduced duties on lithium-ion cells and battery components to support electric vehicle manufacturing.
Impact:
- EVs become more affordable
- Battery costs decrease, the single largest component of EV pricing
- Supports PM E-Drive scheme objectives
- Encourages domestic battery assembly
Who Benefits: EV manufacturers, battery assemblers, EV buyers, two-wheeler and three-wheeler electric vehicle segments.
8. Biofuel Mixed with CNG ✅ CLEAN FUEL INCENTIVE
Change: Duty concessions for biofuel blending with CNG to promote cleaner transport fuels.
Impact:
- Cleaner compressed natural gas available
- Reduces vehicular emissions
- Supports agricultural residue utilization
- Encourages sustainable fuel transition
Who Benefits: CNG vehicle owners, public transport systems, environment.
9. Video Game Manufacturing Parts ✅ GAMING INDUSTRY SUPPORT
Change: Reduced customs duty on components used in video game console and gaming device manufacturing.
Impact:
- Encourages domestic gaming hardware production
- Supports India’s growing gaming industry
- Creates manufacturing jobs
- Reduces dependence on imports for finished consoles
Who Benefits: Gaming device manufacturers, electronics assembly companies, gaming industry ecosystem.
10. TV Equipment and Broadcasting Devices ✅ MEDIA SECTOR RELIEF
Change: Rationalized duties on television broadcasting equipment and production devices.
Impact:
- Lowers costs for media production companies
- Supports growing OTT and content creation industry
- Encourages upgrades to better broadcasting equipment
Who Benefits: Television channels, production houses, OTT platforms, content creators.
11. Microwaves ✅ HOUSEHOLD APPLIANCES
Change: Reduced import duties on microwave ovens and components (part of general household electronics rationalization).
Impact:
- More affordable kitchen appliances
- Benefits middle-class households
- Supports working families seeking convenience
Who Benefits: Urban consumers, working professionals, middle-class families.
12. Scrap (Recyclable Materials) ✅ CIRCULAR ECONOMY
Change: Continued exemptions on import of metal scrap and recyclable materials.
Impact:
- Lower raw material costs for manufacturers
- Supports circular economy initiatives
- Reduces manufacturing costs in steel, aluminum, and metal industries
Who Benefits: Steel mills, aluminum recyclers, metal fabricators, manufacturing sector.
13. Coffee Vending Machines ✅ BEVERAGE INDUSTRY
Change: Rationalized duties on commercial coffee vending machines and parts.
Impact:
- Lower costs for cafes and restaurants
- Supports growing café culture
- Encourages self-service beverage infrastructure in offices and public spaces
Who Benefits: Café chains, corporate offices, hospitality industry, coffee vending machine operators.
What Got Costlier: Luxury and Speculation Targeted
1. Stock Options and Futures Trading ❌ MAJOR COST INCREASE
Change:
- Futures STT: Increased from 0.02% to 0.05% (150% hike)
- Options premium STT: Increased from 0.10% to 0.15% (50% hike)
- Options exercise STT: Increased from 0.125% to 0.15% (20% hike)
Impact:
- Significantly higher transaction costs for derivatives traders
- Reduced profitability for high-frequency trading
- Lower F&O volumes expected
- Targets speculative trading
Who Gets Hit: Active derivatives traders, proprietary trading desks, high-frequency traders, retail F&O participants, brokerages.
2. Luxury Watches ❌ LUXURY TAX
Change: Increased customs duty on imported luxury watches and high-end timepieces.
Impact:
- Premium Swiss and European watches become significantly more expensive
- Targets conspicuous consumption
- Encourages travelers to declare watches properly
Who Gets Hit: Luxury watch buyers, high-net-worth individuals, watch collectors, luxury retailers.
3. Liquor (Imported Alcohol) ❌ SIN TAX HIKE
Change: Higher customs and excise duties on imported alcoholic beverages.
Impact:
- Imported wines, whiskeys, and spirits become more expensive
- Encourages domestic liquor industry
- Reduces consumption of foreign alcohol brands
Who Gets Hit: Importers of premium alcohol, consumers of imported liquor, hospitality industry (hotels and restaurants serving imported brands), duty-free shops.
4. Foreign Tour Packages ❌ OUTBOUND TRAVEL TAX
Change: Higher TCS (Tax Collected at Source) on foreign tour packages and overseas travel expenditure.
Impact:
- More expensive to travel abroad
- Discourages foreign exchange outflow
- Encourages domestic tourism
Who Gets Hit: Outbound travelers, travel agencies offering international packages, NRIs visiting family, students and professionals traveling abroad.
5. Leather Goods and Footwear (Imported) ❌ IMPORT DUTY HIKE
Change: Increased basic customs duty on imported leather footwear and leather goods to protect domestic leather industry.
Impact:
- Imported leather shoes, bags, and accessories become costlier
- Benefits domestic leather manufacturers
- Targets luxury imported leather brands
Who Gets Hit: Consumers of imported leather products (Italian shoes, French bags, etc.), luxury retailers, high-end footwear importers.
6. Video Game Consoles (Finished Products) ❌ FINISHED GOODS DUTY
Change: While components got cheaper, finished imported gaming consoles face higher duties to encourage domestic assembly.
Impact:
- PlayStation, Xbox, Nintendo Switch become more expensive if imported as finished products
- Encourages companies to assemble in India
- Supports “Make in India” for gaming hardware
Who Gets Hit: Gaming enthusiasts importing consoles, electronics retailers, parallel importers.
7. Coal (Certain Grades) ❌ ENVIRONMENTAL LEVY
Change: Increased duties on specific coal grades to discourage fossil fuel consumption and encourage renewables.
Impact:
- Higher costs for thermal power plants dependent on imported coal
- Encourages shift to renewable energy
- May increase electricity costs marginally
Who Gets Hit: Coal-dependent industries, thermal power plants, cement manufacturers using coal, steel plants.
8. Non-Disclosure of Movable Assets ❌ COMPLIANCE PENALTY
Change: Stricter penalties and prosecution for non-disclosure of movable assets like jewelry, art, and high-value personal property.
Impact:
- Higher cost of non-compliance
- Increased scrutiny on wealth declarations
- Penalty provisions strengthened
Who Gets Hit: Individuals not declaring assets, tax evaders, those with undisclosed jewelry and valuables.
Neutral/Mixed Impact Items
Footwear (General)
Status: Mixed impact depending on category.
- Domestic footwear: Benefits from protection against imports
- Imported luxury footwear: Becomes costlier
- Footwear manufacturing inputs: May benefit from duty rationalization on raw materials
Sector-Wise Gainers from Budget 2026
Healthcare Sector 🏥 BIG WINNER
Major Gains:
- Cancer drugs duty-free (17 medicines)
- Rare disease medicines duty-free (7 additional conditions)
- Rs 10,000 crore Biopharma Shakti allocation
- 1,000 accredited clinical trial sites
- Medical value tourism hubs
- Emergency care capacity expansion (50% increase in district hospitals)
- NIMHANS-2 and mental health infrastructure
Who Benefits: Cancer patients, rare disease patients, pharmaceutical companies, medical device manufacturers, hospitals, clinical research organizations, medical tourism operators.
Renewable Energy Sector ⚡ GREEN BOOST
Major Gains:
- Solar device duty exemptions continued
- Biofuel blending incentives
- Nuclear power project inputs duty relief
- Rs 40,000 crore Semiconductor Mission 2.0 (supports solar panel manufacturing)
Who Benefits: Solar panel manufacturers, renewable energy developers, rooftop solar installers, EV charging infrastructure companies.
Electric Vehicle Ecosystem 🚗 EV PUSH
Major Gains:
- Lithium battery duty reduction
- PM E-Drive scheme support
- PLI scheme continuation for auto sector
- Charging infrastructure development
Who Benefits: EV manufacturers (Tata Motors, Mahindra, Ola Electric), battery manufacturers, EV component suppliers, charging station operators.
Defense Manufacturing 🛡️ STRATEGIC PRIORITY
Major Gains:
- Rs 7.84 lakh crore defense budget (15.2% increase)
- Capital outlay of Rs 2.19 lakh crore
- Aircraft and aero engines: Rs 63,733 crore
- Easier FDI norms for defense companies with licenses
Who Benefits: Defense PSUs (HAL, BEL, BDL), private defense manufacturers, aerospace companies, shipbuilding industry.
Semiconductor and Electronics 💻 TECH MANUFACTURING
Major Gains:
- Rs 40,000 crore Semiconductor Mission 2.0
- IT services safe harbor threshold raised to Rs 2,000 crore
- Data center tax holiday till 2047
- Gaming device component duty reduction
Who Benefits: Chip manufacturers, semiconductor equipment makers, data center operators, IT services exporters, electronics manufacturers.
Infrastructure and Construction 🏗️ CAPEX CONTINUATION
Major Gains:
- Rs 12.2 lakh crore capital expenditure
- 7 high-speed rail corridors
- 20 new national waterways
- East Coast Development Corridor
- Tier 2/3 cities infrastructure focus
Who Benefits: Construction companies (L&T, GMR, Adani Infrastructure), cement manufacturers, steel companies, engineering firms, equipment makers.
Domestic Manufacturing 🏭 ATMANIRBHAR PUSH
Major Gains:
- Higher import duties on luxury items (protection)
- Rs 10,000 crore container manufacturing
- 200 legacy cluster revival
- 7 strategic sectors manufacturing push
- Hi-tech tool rooms development
Who Benefits: Leather manufacturers, footwear companies (replacing imports), electronics assembly, textile manufacturers, handicraft producers.
Agriculture and Allied 🌾 RURAL FOCUS
Major Gains:
- 500 reservoirs for farmers
- Animal husbandry credit subsidies
- Cashew and cocoa dedicated programs
- Deep-sea fishing duty exemption
Who Benefits: Farmers, dairy farmers, poultry entrepreneurs, fishing communities, agricultural equipment makers.
Tourism and Hospitality ✈️ EXPERIENCE ECONOMY
Major Gains:
- Medical value tourism hubs
- National Institute of Hospitality
- 1.5 lakh caregiver training
- AYUSH medical tourism integration
Who Benefits: Hotels, tour operators, hospitality training institutes, caregivers, medical tourism facilitators.
Women Entrepreneurs 👩💼 EMPOWERMENT FOCUS
Major Gains:
- SHE (Self-Help Entrepreneur) Marts
- STEM education for girls
- Textile employment schemes (women-heavy sector)
Who Benefits: Women SHG members, girl students, women entrepreneurs, textile workers.
Sector-Wise Losers from Budget 2026
Brokerage and Trading Platforms 📉 STT SHOCK
Major Hits:
- 150% STT increase on futures
- 50% STT increase on options
- Volume reduction expected
Who Gets Hit: Discount brokers (Zerodha, Angel One, Groww), stock exchanges (BSE, NSE), proprietary trading firms, market-making desks.
Luxury Goods Importers 💎 CONSPICUOUS CONSUMPTION TAX
Major Hits:
- Higher duty on luxury watches
- Increased duty on imported leather goods
- General luxury item taxation
Who Gets Hit: Luxury retailers, high-end watch importers, premium leather goods importers, duty-free operators.
Alcohol Import Business 🍾 SIN TAX TARGET
Major Hits:
- Higher customs duty on imported liquor
- Reduced competitiveness vs domestic brands
Who Gets Hit: Wine and spirits importers, premium bars and restaurants, hospitality industry serving imported alcohol.
Outbound Travel Industry 🌍 TRAVEL TAX BURDEN
Major Hits:
- Higher TCS on foreign tour packages
- Discouragement of forex outflow
Who Gets Hit: International travel agencies, airlines (for international routes), foreign tour operators, study-abroad consultants.
Coal-Dependent Industries ⚫ FOSSIL FUEL PHASE-OUT
Major Hits:
- Higher duty on coal imports
- Push toward renewables
Who Gets Hit: Thermal power plants, coal importers, coal-dependent cement and steel plants.
Conclusion: Clear Policy Signals Through Tariff Changes
Budget 2026’s customs duty and tax changes send clear signals about government priorities:
What India Wants to Encourage:
- Healthcare accessibility (cancer and rare disease drug exemptions)
- Domestic manufacturing (higher import duties on finished goods, lower on inputs)
- Clean energy (solar, biofuels, EVs)
- Strategic sectors (defense, semiconductors, data centers)
- Skill development and employment (textiles, tourism, caregivers)
What India Wants to Discourage:
- Excessive speculation (F&O trading via STT hikes)
- Luxury consumption (watches, leather goods, imported liquor)
- Foreign exchange outflow (foreign travel, imported luxuries)
- Fossil fuel dependency (coal duties)
For consumers, the budget delivers relief on essentials (medicines, seafood, personal imports) while making luxury and speculative activities costlier. For industries, the message is clear: manufacture in India, focus on strategic sectors, and align with national priorities of health, green energy, and technological self-reliance.