New Delhi, India | January 31, 2026
With the Union Budget 2026 set to be presented in Parliament on Saturday, February 1, at 11:00 AM, several early indicators are emerging about what could become cheaper or more expensive for consumers.
While official announcements will only be made during the budget speech, estimates based on government sources and economic experts, compiled by INVC NEWS, suggest potential changes in taxes, duties, and exemptions that could directly impact household spending and business costs.
What Could Become Cheaper After Budget 2026
Electronics and Smartphones
Import duties on mobile phones and key components such as camera modules and batteries may be reduced. According to Gadgets360, such a move could lower smartphone prices and support domestic electronics manufacturing under the Make in India initiative.
Electric Vehicle (EV) Components
The government is expected to consider tax cuts on lithium-ion batteries, a core component of electric vehicles. If implemented, this could reduce the prices of electric scooters and electric cars, accelerating EV adoption across India.
Medicines
There is growing discussion around removing or reducing GST on life-saving drugs, particularly medicines used to treat cancer and rare diseases. Experts say this would ease the financial burden on patients and improve access to essential treatments.
What Could Become Costlier
Cigarettes and Tobacco Products
As seen in previous budgets, the government may raise excise duty under the “sin tax” category. Cigarettes, bidis, and other tobacco products could see higher prices as part of public health and revenue measures.
Imported Luxury Goods
Premium foreign products such as luxury footwear, perfumes, handbags, and accessories may attract higher import duties. This is aimed at discouraging imports and boosting domestic manufacturing.
Gold and Silver
Although gold and silver prices declined sharply today, any increase in customs duty in the budget could push prices higher again from February 1. Even a small duty hike tends to have an immediate impact on bullion rates.
Impact on the Common Taxpayer
Income Tax Relief Likely
One of the most closely watched areas is personal income tax. Market expectations suggest the government may increase the standard deduction from ₹50,000 to ₹1,00,000, offering meaningful relief to salaried taxpayers.
According to The Economic Times, changes in the new tax regime could potentially make annual income up to ₹13 lakh tax-free, depending on slab restructuring and exemptions.
What to Watch on Budget Day
Economists say Budget 2026 will focus on:
Boosting manufacturing and clean energy
Supporting middle-class taxpayers
Balancing fiscal discipline with growth
Encouraging domestic production over imports
Final clarity will only emerge once the finance minister delivers the budget speech in Parliament.
