Finance Minister Nirmala Sitharaman presented her seventh Union Budget for the fiscal year 2024-2025. This budget has resulted in price changes for several consumer items.
The inaugural budget from the BJP-led NDA government aims to influence India’s economic framework, impacting various sectors including infrastructure and social welfare. The finance minister revealed initiatives that will decrease the prices of mobile phones, gold, silver, and copper.
MUST READ: Budget 2024: Major Changes in Income Tax Regime Announced
BUDGET 2024: Items That Have Become Cheaper
The finance minister announced a reduction in the Basic Customs Duty on mobile phones and mobile chargers to 15 percent. Customs duties on gold and silver have been reduced to 6 percent, and on platinum to 6.4 percent.
Three cancer treatment drugs have been exempted from Basic Customs Duty. Additionally, the finance minister proposed expanding the list of exempted capital goods used in the manufacturing of solar panels.
The TDS rate on e-commerce transactions has been reduced from 1 percent to 0.1 percent. The Basic Customs Duty on ferronickel and blister copper has been removed.
BUDGET 2024: Items That Have Become Costlier
The finance minister proposed increasing the customs duty on ammonium nitrate to 10 percent and on non-biodegradable plastics to 25 percent.
The Basic Customs Duty on specified telecom equipment has been raised from 10 percent to 15 percent.
In the 2023 annual budget, the finance minister announced a reduction in import taxes on various components, including camera lenses, to encourage mobile phone manufacturing in India. The tax rate on lithium-ion batteries, crucial for phones and electric vehicles, was also cut. This policy change aims to lower manufacturing costs for phones in India.
Economic Overview
The Economic Survey 2024 predicts India’s GDP growth between 6.5-7% this year, with retail inflation declining to 5.4% during 2023-24 from 6.7% previously. Presented by Finance Minister Nirmala Sitharaman in parliament on July 22, 2024, the Economic Survey 2023-24 frequently used the terms ‘Service’ and ‘growth’.
Budget Delivery
Similar to the previous Union Budgets, the Budget 2024 was delivered in a paperless format. An Interim Union Budget 2024 was presented on February 1, in anticipation of the general elections.
Middle Class Expectations
The middle class is hoping for tax reliefs, including an increase in the standard deduction limit, a higher basic tax exemption limit in the new income tax regime, and simplified capital gains tax regimes.
