On Tuesday, July 23, Finance Minister Nirmala Sitharaman presented Modi 3.0's first Union Budget, which looks to improve the coordination between the Centre and the states, bring modification in the income tax slabs, and increase capital expenditure. It modified customs duty to balance the economy for spending. More significantly, it cut customs duty on cancer medicines drastically and on mobile phones to make them affordable and feasible. It is expected to help cancer patients and slash mobile device prices. Also, reductions in the import duties on gold, silver, and leather products are meant to spur consumer demand and rein in smuggling. All these changes are geared toward facilitating economic growth, benefiting consumers, and ensuring market stability.

What Has Become Cheaper?

• Mobile phones and Accessories: The customs duty on mobile phones, mobile parts, batteries, and chargers is now cut to 15%, thereby making technology more affordable, hence stimulating spending by the consumer.
• Gold, Silver, and Platinum: The duty on gold, and silver was reduced to 6 percent from the current 15%; platinum was cut to 6.4%. This could trigger retail demand for bullion, and check smuggling, but might also widen India's trade deficit and hit the rupee.
• Medicines for Cancer and Equipment for X-rays: To make healthcare more accessible, three major medicines for the treatment of cancer and X-ray equipment are now exempt from basic customs duties. This would bring down treatment costs besides making diagnostic services more affordable.
• Fish and Fish Products: A basic custom duty on fish, including broodstock, shrimp, polychaete worms, and fish feed has been reduced to 5%. This shall spur the fishing industry and help bring down seafood prices.
• Essential Metals and Minerals: Basic customs duty on ferro nickel, blister copper, and 25 critical minerals, including lithium has been exempted. It will benefit the industries using these basic materials, especially in the electric vehicles industry.
• Solar Panels and Leather Goods: Customs duty on a large number of items used for making solar panels has been abolished, and that on leather goods has been reduced. This will support green energy projects and cut the cost of leather products.

What's Gotten Costlier?

• Plastic and Related Goods: The government has increased Customs duty on plastic products and related goods. This can be seen as an attempt to make people opt for more environment-friendly items and reduce plastic waste.
• Ammonium Nitrate: It is now at 10% from the present 7.5% as the customs duty of ammonium nitrate has risen. This hike may dent agricultural and industrial sectors, which were using this chemical.
• Telecommunications equipment: The telecommunication equipment duties have risen from 10% to 15%. This now opens room for increased prices for related telecommunications services and devices.
• Garden umbrellas and laboratory chemicals: Other increases in customs duties have affected imported garden umbrellas and some laboratory chemicals. This may be interpreted as part of a general trend aimed at keeping import expenditure under control and supportive of domestic production.

List Of Items That Got Cheaper And Costlier After Budget 2024

Budget 2024 has adopted a nuanced strategy that will see the seeking of growth drivers in selected sectors while implementing higher costs in others to address trade and fiscal challenges. There could hardly be a better example of careful balancing concerning the economic dynamic: it would ensure that broader economic impacts are kept at bay by stimulating key industries. The dual emphasis on sector growth and fiscal discipline, in this regard, reflects the budget's commitment to ensuring sustainable management of the economy against the changing global backdrop.

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