Union Finance Minister Nirmala Sitharaman unveiled the Union Budget 2025 with a strong focus on providing relief to salaried employees, boosting key sectors, and ensuring inclusive growth. One of the most significant announcements was the exemption of income tax for individuals earning up to ₹12 lakh annually, a move that will benefit millions of middle-class families. Alongside this, the budget introduced several customs duty cuts aimed at making essential goods more affordable while promoting domestic manufacturing and exports.
What’s Get Cheaper?
In a bid to ease the financial burden on patients, the government has fully exempted 36 life-saving drugs used for cancer and chronic diseases from basic customs duties. This decision is expected to make critical treatments more accessible to those in need. Additionally, customs duties on gold and silver have been reduced to 6%, and platinum to 6.4%, offering relief to consumers and the jewelry industry. The budget also removed basic customs duties on ferronickel and blister copper, further supporting industrial growth.
The budget brought good news for the electronics sector, with a reduction in customs duties on components like open cells to 5%. This move is likely to lower the cost of manufacturing electronic goods, including mobile phones and televisions. To boost the electric vehicle (EV) industry, 35 goods essential for EV battery manufacturing and 28 for mobile phone battery production have been added to the list of exempted capital goods. Similarly, raw materials for shipbuilding will enjoy a 10-year exemption from customs duties, fostering growth in the maritime sector.
The leather and footwear industry also received a significant boost, with customs duty exemptions on wet blue and crust leather imports. A new scheme aims to create 2.2 million jobs and generate ₹4 lakh crore in revenue, revitalizing this labor-intensive sector. Furthermore, customs duties on frozen fish paste (Surimi) have been slashed from 30% to 5%, benefiting manufacturers and exporters.
What’s Get Costlier?
However, not all items became cheaper. Flat panel displays used in TVs and mobile phones will see a customs duty hike from 10% to 20%, potentially increasing prices for consumers. Additionally, the removal of social welfare surcharge exemptions on 82 tariff lines may lead to higher costs for certain goods.
Sitharaman emphasized that the budget prioritizes the poor, youth, farmers, and women, aiming for balanced growth across all regions. With a focus on 10 key areas, the budget seeks to drive inclusive development, ensuring that the benefits of economic progress reach every citizen. This budget marks the second full budget of the Modi 3.0 government, reflecting its commitment to sustainable growth and welfare.
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