With just a few hours to go before Budget 2026 is presented, all eyes are on how it will impact the common citizen’s pocket. Expectations are high, especially
among the middle class, as people hope for relief from inflation and some tax benefits. While some items may become cheaper after the budget, others could turn costlier. The government is expected to focus strongly on boosting ‘Make in India’ and increasing the purchasing power of consumers. Against this backdrop, here’s a look at what may become cheaper and what could get more expensive after Budget 2026. What Could Become Cheaper? (Expected Relief) Smartphones and Tablets A reduction in customs duty on mobile components such as camera modules and displays could make smartphones manufactured in India more affordable. Affordable Housing There is hope that the tax deduction limit on home loan interest may be raised from Rs 2 lakh to Rs 5 lakh, making home ownership easier and cheaper. Health Insurance Experts have suggested extending Section 80D-type tax benefits to the new tax regime as well. If approved, taxpayers could get additional deductions ranging from Rs 25,000 to Rs 50,000 on health insurance premiums for themselves and their families. Electric Vehicles (EVs) Lower taxes on raw materials used in battery manufacturing could reduce the prices of electric scooters and cars. Cancer Medicines and Medical Devices A cut in duties on life-saving drugs and critical medical equipment could bring down treatment costs. Domestic Electronics Televisions, refrigerators, and other home appliances manufactured in India may get cheaper if the government offers tax or duty relief. What Could Become Costlier? (Higher Burden on the Pocket) Imported Luxury Goods High-end watches, footwear, and designer clothing imported from abroad may become more expensive if customs duties are increased. Foreign Cars Premium cars imported as completely built units (CBUs) could see higher taxes, pushing prices up. Imported Cosmetics Luxury beauty products, perfumes, and makeup items sourced from overseas may become costlier. Gold and Silver Any change in import duty on gold could impact jewellery prices. Silver prices may also be affected depending on policy changes. Tax Relief and Its Impact on Savings Beyond prices of goods, the government may also focus on increasing direct savings. There is speculation that under the new tax regime, income up to Rs 15 lakh could be brought closer to a zero-tax structure. Additionally, the standard deduction for salaried individuals may be increased from Rs 75,000 to Rs 1,00,000. If these measures are announced, it would mean higher take-home salaries and more disposable income for households. Overall, Budget 2026 is expected to balance inflation control, growth, and consumer relief — with clear winners and a few costlier items along the way.
