With the presentation of the Union Budget 2026, Indian consumers can expect changes in prices across a wide range of goods and services. While several essential and lifestyle items are likely to become cheaper, others may turn costlier, depending on the government’s decisions on customs duties and taxes.
Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman outlined a series of customs duty reductions aimed at easing costs for consumers, boosting domestic manufacturing, and supporting critical sectors such as healthcare, renewable energy and aviation. She also highlighted tariff cuts on select imported goods that could lower prices in the Indian market.
Items Expected to Get Cheaper
The government has proposed duty reductions on the following categories, which could translate into lower prices for consumers:
- Personal-use imported goods
- 17 life-saving drugs and medicines for cancer patients
- Drugs, medicines and Food for Special Medical Purposes (FSMP) for seven rare diseases
- Leather products, including footwear
- Textile garments
- Seafood products
- Overseas tour packages
- Lithium-ion cells used in batteries
- Solar glass
- Critical minerals
- Biogas-blended CNG
- Aircraft manufacturing components
- Microwave ovens
- Foreign education expenses
These measures are expected to provide relief to households while also supporting clean energy, healthcare access and industrial growth.
Items Expected to Get Costlier
At the same time, the Budget proposes higher duties or taxes on certain goods and activities, which could lead to price increases:
- Alcohol
- Cigarettes and tobacco products
- Components used in nuclear power projects
- Minerals such as iron ore and coal
- Penalties linked to misreporting of income tax
- Stock options and futures & options (F&O) trading, due to a hike in Securities Transaction Tax (STT)
Will Wine Get Cheaper Despite Alcohol Taxes?
While the Budget signals that alcohol could become costlier, consumers may find some relief through the recently finalised India–European Union Free Trade Agreement (FTA).
According to the EU, tariffs on 96.6% of its exports to India will be reduced or eliminated under the pact. As a result, several European imports could see price cuts in India, including:
- Wine, beer and select spirits
- Kiwis and pears
- Fruit juices
- Non-alcoholic beer
- Processed food products
This means that despite higher domestic duties, imported European wines and beverages could become more affordable in the coming months.
Key Takeaways From Budget 2026–27
In her 81-minute Budget speech, Finance Minister Sitharaman addressed several other major policy areas, including:
- Timelines for income tax return (ITR) filing
- A hike in Securities Transaction Tax (STT) on futures and options
- Expansion of India’s semiconductor mission
- Development of rare earth corridors
The Budget received praise from Prime Minister Narendra Modi and senior BJP leaders, who described it as growth-oriented and future-ready. However, the Congress and other Opposition parties criticised it as “lacklustre” and claimed it lacked meaningful reforms aimed at supporting the poor.