Union Budget 2024: Here’s what’s Cheaper and More Expensive.

The Union Budget for 2024 is designed to achieve a balance, prioritizing stability and sustainability while establishing the foundation for more aggressive, groundbreaking policies to be implemented post-election.

Finance Minister Nirmala Sitharaman presented the Union Budget for 2024, introducing numerous projects across agriculture, manufacturing, and services sectors. She also announced significant changes to the capital gains tax regime and income tax regimes. Commenting on the budget, Sitharaman stated, “The people of India have granted us a unique opportunity to lead the country on a path of strong development and all-round prosperity. In the interim budget, we pledged to present a detailed roadmap for our pursuit of ‘Viksit Bharat,’ a vision that reflects our nation’s aspirations for a progressive and prosperous future.”

Unveiling a collection of fiscal measures and policies aimed at maintaining economic stability and promoting growth. This year’s budget adopts a pragmatic approach, presenting a variety of changes that will impact the cost of goods and services in India.

Items that will be Cheaper:

Smartphone and Spare Parts: The government has taken a substantial step to enhance the ‘Make-in-India’ initiative by reducing import duties on smartphone components and spare parts from 15% to 10%. This reduction in import duties is expected to enhance the competitiveness of the domestic smartphone sector, both within India and globally, while promoting growth in manufacturing and supply chain operations within the country.

Gold and Silver: The customs duties on gold and silver have been lowered, leading to a reduction in the prices of these precious metals and making them more accessible to consumers. This policy shift is anticipated to curb smuggling and increase legal imports, creating a win-win situation for both consumers and the jewelry industry.

Footwear: A reduced GST on selected types of footwear, particularly on sports shoes and parts and accessories of footwear. This move is designed to bring down the cost of these essential items, enhancing affordability for consumers while also providing a boost to the domestic footwear industry.

Cancer Medicines: The Union Budget has also brought good news for cancer patients, as the GST rate on cancer-fighting drugs has been significantly reduced. This decision is anticipated to decrease the cost of cancer medication, making treatment more affordable and accessible. This move is expected to provide relief to patients and families struggling with the financial burden of cancer treatment, while also promoting the development of a robust domestic pharmaceutical sector.

Renewable Energy Equipment: The Union Budget has also aimed to support the development of renewable energy by decreasing import duties on solar panels and other components used in the renewable energy sector.This move is expected to lower the cost of importing solar panels and equipment, making them more accessible and attractive for consumers.

Items that will be Expensive:

Plastic Products: In line with the government’s aim to reduce plastic consumption, the Union Budget has increased duties on various plastic products. This decision is likely to result in higher prices for these items, making plastic alternatives such as biodegradable or eco-friendly materials more appealing for consumers.

Specified telecom equipment: Despite the cost reduction of mobile phones, the telecom industry may face challenges due to an increase in customs duty on specific telecom equipment. The Union Budget has raised the basic customs duty on these items to 15% from 10%, which may negatively impact the prices of these products.

Equity investments: The government has made adjustments to the tax rates for short-term capital gains on equity investments. The tax rate on equity investments held for less than one year has been increased to 20% from the previous rate of 15%. This change will result in a higher tax burden for short-term equity investors, particularly for those engaged in active trading.

Ammonium nitrate: The government has taken the decision to increase the customs duty on ammonium nitrate from nil to 10%. This move is set to result in an increased cost for importers of the compound, which is a crucial ingredient in the production of fertilizers and explosives. The decision aims to incentivize the domestic production of ammonium nitrate, thereby boosting the domestic fertilizer industry and reducing the country’s reliance on imports.

By targeting key sectors and adjusting import duties with a view toward boosting domestic industries and reducing reliance on imports, the budget is geared toward creating a robust and inclusive economy. The comprehensive plan aims to lay a solid foundation for future growth, while also maintaining fiscal responsibility, ensuring a prosperous and sustainable future for the nation.