Union Budget 2025: Changes in Prices of Essential Goods
Several amendments to the customs duty triggered price modifications for several goods in the Union Budget 2025. Certain items are now cheaper due to the lowering of duties, whereas some others have become costlier owing to revised tax rates. Here is an overview of these alterations.
Goods That Became More Affordable
- Gold and Jewelry:
- The customs duty on jewelry has been lowered from 25% to 20%, reducing the overall cost of gold ornaments and other precious jewelry. This move is expected to boost the domestic jewelry market and benefit both consumers and the gems industry.
- Platinum Components:
- The import duty on platinum findings has been significantly cut from 25% to 5%, making platinum-based jewelry and accessories more accessible to buyers and enhancing India’s position in the global precious metals market.
- Imported Seafood:
- The government has reduced customs duty on fish paste and frozen fish from 30% to 5%, making imported seafood more affordable. This move is likely to benefit restaurants, food processing industries, and seafood lovers.
- Carrier-Grade Ethernet Switches:
- The customs duty on carrier-grade Ethernet switches has been reduced from 20% to 10%, bringing it in line with non-carrier-grade switches. This reduction aims to promote digital infrastructure growth and support the telecommunications sector.
Goods That Became More Expensive
- Interactive Flat Panel Displays (IFPDs):
- The customs duty on large-screen interactive displays, commonly used in corporate settings, educational institutions, and conference rooms, has been raised from 10% to 20%. This change may result in higher prices for smart boards and digital signage.
- Knitted Fabrics:
- The duty structure on knitted fabrics has been revised, which is likely to result in a slight increase in their prices. This may impact garment manufacturers and textile businesses, potentially influencing clothing costs.
Government’s Strategic Approach
These duty adjustments reflect the government’s dual objective—supporting domestic industries while maintaining fiscal discipline. By reducing duties on select items, the government aims to enhance affordability and stimulate economic activity, while increasing duties on other goods ensures revenue generation and protection for local manufacturers.
Consumers, businesses, and industry stakeholders should assess these changes carefully to understand how they impact their expenses and investment decisions.
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