The Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman, brings a mixed bag of reliefs and shocks for consumers and businesses alike. While several everyday and industrial-use items are set to become cheaper, certain products such as alcohol and select raw materials are expected to pinch the pocket more. The budget, tabled amid global economic uncertainty and rising international trade pressures, reflects the government’s effort to balance growth, manufacturing, and public welfare.

Key Consumer Reliefs in Budget 2026

One of the most noticeable takeaways from the budget is the reduction in costs for a range of consumer goods and essential items. Products related to leather, textiles, and footwear manufacturing have received significant duty rationalisation. As a result, leather shoes, synthetic footwear, and textile exports are expected to become more affordable, benefiting both manufacturers and end consumers.

The government has also announced reductions impacting household appliances. Microwave ovens are likely to become cheaper, offering relief to middle-class families. In addition, items related to solar energy, including solar glass, have been made more affordable to encourage clean energy adoption and support India’s renewable energy goals.

Major Relief for Healthcare and EV Sector

Healthcare has received a strong push in Budget 2026. Duties on 17 life-saving cancer drugs and certain diabetes medications have been reduced, making treatment more affordable for patients. This move is expected to significantly lower healthcare expenses and improve access to essential medicines across the country.

The electric vehicle (EV) ecosystem has also been supported through duty cuts on EV batteries and components linked to aircraft manufacturing. These measures aim to boost domestic manufacturing, reduce import dependence, and accelerate India’s transition to green mobility.

Boost for Exports and Travel

Export-oriented sectors have received a positive signal with reduced costs for leather and textile exports. This is expected to enhance India’s competitiveness in global markets at a time when international trade faces challenges from high tariffs and geopolitical tensions.

Interestingly, foreign travel is also set to become relatively cheaper due to rationalisation of certain duties, offering relief to frequent international travellers and the aviation sector.

What Gets Costlier in Budget 2026

While many sectors have gained, some items are set to become more expensive. Alcohol prices are likely to rise due to increased duties, which could impact consumers across states. In addition, minerals and scrap materials have been placed in the higher-cost category, a move that may affect certain manufacturing industries.

However, the government has not announced any major tax relief for individual taxpayers. From April 1, 2026, the new Income Tax Act will come into effect, but without introducing fresh concessions or rate cuts in this budget.

Strategic Focus Beyond Taxes

Despite limited direct tax relief, the budget places strong emphasis on key sectors such as agriculture, defence, renewable energy, and manufacturing. The government believes these investments will help India move closer to its long-term vision of “Developed India 2047.”

At a time when India is facing high US tariffs and global economic uncertainty, Budget 2026 aims to support domestic industries, control inflationary pressures, and ensure steady economic growth.

Summary: Cheaper vs Costlier Items

Items Likely to Become Cheaper:

• Leather products and leather footwear

• Synthetic shoes

• Textile and garment exports

• Microwave ovens

• Solar glass and solar energy components

• EV batteries

• Aircraft manufacturing components

• Biogas-mixed CNG

• Aviation fuel

• Foreign travel

• 17 cancer medicines

• Select diabetes drugs

Items Likely to Become Costlier:

• Alcohol

• Minerals

• Scrap materials

Conclusion

Union Budget 2026 offers targeted relief to consumers, exporters, and key growth sectors while tightening costs on selected goods. Though it stops short of offering tax breaks, the budget’s focus on affordability, healthcare, green energy, and manufacturing could have a lasting impact on India’s economic trajectory.