NEW DELHI: The salaried class applauded last year; now it's the producers' turn to raise a glass. The Union Budget 2026–27 subtly altered the household balance sheet, lowering the cost of some essential medications while raising others, as Union finance minister Nirmala Sitharaman prioritized long-term industrial strength over immediate consumer relief amid concerns about international trade.
The economists described the budget as "producer-centric" and expressed hope that it would boost Make in India. On paper, it can seem disheartening for the middle class, but analysts think that "indirect benefits are greater than direct benefits".
The budget recommendations clearly distinguish between products that could become more affordable for consumers and industries that would be negatively impacted.

In an effort to strengthen domestic industries and lessen the burden on patients and producers, the government has taken steps to reduce the costs of sports equipment, leather goods, cancer medications, and seafood through policy support, duty-free imports, and customs exemptions.
On the other hand, proposed changes to buyback taxation, the securities transaction tax (STT), and the tax collected at source (TCS) are expected to make trading activities and some corporate cash-distribution channels more expensive, indicating a more stringent approach to tax arbitrage and compliance. Additionally, the price of imported alcohol and coffee may increase.

Items that could become less expensive:
Sports equipment: Sitharaman suggested starting the "Khelo India Mission," which would concentrate on employment, training, and career prospects in the sports industry. Sports equipment is anticipated to improve as a result. "The Sports Sector provides many forms of employment, skilling and career prospects. "I propose to launch a Khelo India Mission to transform the sports sector over the next ten years, building on the systematic nurturing of sports talent initiated by the Khelo India program," she stated.

Leather goods: The finance minister declared duty-free imports of key inputs currently accessible for exports of leather. "I also propose to allow duty-free imports of specified inputs which is currently available for exports of leather or synthetic footwear to exports of shoe uppers as well," she stated.
Cancer medications: In order to help patients, Sitharaman listed seven rare conditions and announced a customs tax exemption on seventeen cancer medications. "I propose to exempt basic customs charge on 17 pharmaceuticals or treatments to help patients, especially those with cancer. In order to exempt personal imports of food, medications, and drugs for specific medical purposes employed in their treatment, I also suggest adding seven more rare disorders," she stated.

Seafood: To assist the fishing community, the center declared duty-free fish caught outside of territorial waters.
Microwave ovens: The government declared that some items used in the production of microwave ovens are exempt from basic customs charge.
Solar panels: In the energy sector, the government has extended the basic customs duty exemption on capital goods needed to produce lithium-ion battery cells, and has also reduced basic customs duty on the import of sodium antimonate used in creating solar glass. Solar panels might therefore become more affordable.
EV batteries: In an effort to lower manufacturing costs and increase domestic battery production, the government said that it will keep waiving import duties on equipment used to produce lithium-ion battery cells intended for energy storage systems.

Imports for personal use: The Center said that the import duty on all dutiable products brought in for personal use will be reduced from 20% to 10% in an effort to improve living conditions.
Travelling abroad: The tax collected at source on international tour packages has been decreased to 2% from the prior rates of 5% and 20%, with no minimum amount restriction. This implies that when booking international travel, travelers will have to pay less up advance.

What could get more expensive:


Trading: The government's proposed changes to buyback taxation, the securities transaction tax (STT), and tax collected at source (TCS) on specific goods may make trading and some corporate cash-distribution channels more costly. This underscores a stronger drive to restrict tax arbitrage and tighten compliance.
Video game manufacturing: As of April 1, the government will no longer exclude parts used in the production of video games from customs duties. As a result, video game consoles or locally produced gaming devices may become slightly more expensive.
Misreporting taxes: The Budget proposes to extend immunity from penalty and prosecution to cases of misreporting as well, providing the taxpayer pays the full tax owing together with interest and an additional amount equal to 100% of the tax.

Coffee: As of February 2, the government has eliminated the exemptions from customs duties on coffee roasting, brewing, and vending machines. Unless manufacturers or importers absorb the additional levy, this is expected to make imported coffee machines more expensive, raising expenses for cafés, workplaces, and enterprises that depend on such equipment.
Imported alcohol: The government suggested rationalizing the TCS rate for vendors of alcoholic beverages to 2%. At the moment, the TCS rate for the sale of alcoholic beverages intended for human use is 1%.
Imported zoo animals and birds: The government has made the decision to revoke the exception for zoo-imported animals and birds.
Fertilizers: Naphtha used in fertilizer production is no longer free from customs duties, according to the government.

Other things that may get costly include Umbrellas, ATM/cash dispenser machine and its parts and component, film & broadcasting equipment for foreign teams.
A budget focused on producers?According to Vinod Sen, an economics professor at Indira Gandhi National Tribal University in Amarkantak, "the budget clearly tilts toward strengthening industry and supply chains rather than immediate consumer relief."The government’s premise is that robust supply-side growth would eventually benefit consumers through trickle-down effects, albeit the immediate emphasis remains on production and competitiveness," he added.

Raksha Singh, an economics professor at IGNTU, stated that this year's budget was "more producer-centric, with initiatives such as dedicated rare-earth corridors and increased growth and budgetary support for manufacturing, defense, and infrastructure (record Rs 12.5 lakh crore capital expenditure)," in contrast to last year's massive tax relief for the salaried class.
"Middle-income households receive selective relief, though the overall impact is modest," Sen stated. What is available for the middle class?Long-term competitiveness and industrial expansion are given precedence over short-term consumer or middle-class relief in the Union Budget 2026–2027. Stronger supply networks, manufacturing, and job prospects will eventually reveal their advantages. This strategy is in line with the government's Viksit Bharat @2047 vision, but it requires favorable international trade conditions and persistent implementation," he continued.

The middle class has minimal access to the more expensive and less expensive list. Major relief in cancer medicine prices, along with relief in appliances seem to be a few reliefs here and there.
However, experts believe that it may prove advantageous in the longer run as it would "create employment prospects over time". "For the middle class, indirect advantages are bigger than direct benefits, as the Budget is focused on structural economic growth rather than immediate consumption growth, which is intended to produce employment possibilities over time. As we all expect every time tax exemptions and tax benefits, so in that front, no change," Singh remarked.

A campaign for "Made in India"?

The Budget has ringfenced manufacturing-heavy, important industries for scale-up and import substitution in an effort to intensify the Make in India and Atmanirbhar Bharat campaign.
The government prioritized frontier fields like as biopharma and biosimilars, semiconductors and electronics components, rare earth magnets, chemicals, capital goods and construction equipment, container manufacturing, and clean energy—including EV batteries, solar glass and nuclear power. "The budget provides meaningful but long-term support for domestic manufacturing in the face of global trade challenges," said Sen, adding that "Semiconductor Mission 2.0, capital goods expansion, and duty exemptions on equipment for lithium-ion cells and critical minerals strengthen local production."

"These steps reduce reliance on imports and shield India from tariff shocks," he stated.
Singh, however, stressed that the self-reliance hinged on "good implementation" of the schemes. "The "make in India" movement is deliberate and gradual, but it is possible if done correctly. Reduced input prices and increased MSME financing will provide a boost; but, innovation faces problems due to relatively less emphasis on R&D, and the focus appears to be more on 'assemble in India' rather than 'Make in India'," Singh said. "From a different perspective, though, this can be viewed as a wise decision to boost sectors right away and create jobs, with the hope of eventually moving toward domestic production," she continued.