Gold, electronics to cost cheaper. See what is costlier and cheaper in Budget 2024

Union Finance Minister Nirmala Sitharaman presented her seventh Union Budget for the fiscal year 2024-2025 on Tuesday, July 23 unveiling significant changes to customs duties that promise to make a range of products more affordable for consumers.

Lower Prices on Electronics and Medicines

One of the notable highlights of the Budget is the reduction of customs duties on mobile phones and chargers by 15 per cent, which is expected to bring down the retail prices of these essential electronic items. In addition, customs duties on three crucial cancer treatment medicines have been entirely waived, providing much-needed financial relief to patients and their families.

Also read: Union budget lays down solid roadmap to maintain India's growth momentum: Himanta Biswa Sarma

Cheaper Imports of Precious Metals

The Budget also addresses the import costs of various goods. Customs duties on gold and silver have been reduced to 6 per cent, while the duty on platinum is set at 6.5 per cent. This move is aimed at boosting domestic value addition in gold and precious metal jewelry. Furthermore, consumers can expect lower prices on leather goods and seafood, as these items will also benefit from reduced import duties.

Exemptions on Critical Minerals and Solar Panel Manufacturing

In a bid to support the manufacturing sector, the government has exempted customs duties on 25 critical minerals and expanded the list of capital goods exempt from duties for solar panel production. Basic customs duties on ferro nickel and blister copper have also been removed, facilitating lower production costs for various industries.

Items Set to Become Costlier

However, the Budget also includes measures that will increase the cost of certain products. Customs duties on ammonium nitrate will rise by 10 per cent, and non-biodegradable plastics will see a 25 per cent hike in duties. Additionally, telecom products will become more expensive due to a 5% increase in the basic customs duty on specific telecom equipment, and plastic products will face higher prices as a result of increased import duties.

Economic Outlook and Fiscal Policy

The Budget follows the positive economic indicators highlighted in the Economic Survey 2024, which projects India's GDP growth between 6.5 per cent and 7 per cent for the year. Retail inflation has declined to 5.4 per cent in 2023-24 from 6.7 per cent the previous year, underscoring the economy's resilience. As with previous years, Budget 2024 continues the trend of being delivered in a paperless format. An Interim Union Budget was presented earlier on February 1, 2024, as the nation geared up for general elections.

Finance Minister Nirmala Sitharaman's latest budget is poised to influence various sectors, bringing relief through reduced costs in essential goods and promoting growth in manufacturing and other industries.