Hello Readers!!

The Union Budget for the fiscal year 2021-22 is out. This year's Budget is unique as the finance minister used a Made in India tablet to deliver a paperless Budget address, and ditched a 'bahi khata', that she used last year.

The Budget 2021 is special and at the same time too challenging because it has come at a time when the country’s economy was hitched by the COVID-19 pandemic and is in the phase of recovery. It will be interesting to watch out how this Budget help to accelerate the recovery speed of the Indian Economy.

As the Budget for FY21-22 is announced, many commodities are set to become more expensive and some items of daily use will have revised prices.

Let's take a look at things that become cheaper and things that become costlier. 


What Gets Cheaper?

  • Gold and Silver are at the top of the list of things that got cheap, as, in the budget 2021, 10% customs duty decreased in Gold and Silver. 
  • Custom duty on stainless steel was also reduced to 7.5%. 
  • Custom duty on nylon clothes was also reduced to 5%, thus adding it to the list of things that got cheap. 
  • Import duty on crude palm oil got cut to 15% from 27.5%.
  • Custom Duty on Iron was also reduced to 5%, making it more affordable. 
  • Custom Duty on copper items got reduced by 5%. 
  • The electricity supply got cheaper for the public, as the customs duty got reduced by 5%. 


What Gets Expensive? 

  • Mobile, mobile chargers, mobile parts, and power banks got expensive after the government announced a 2.5 percent hike in customs duty. 
  • Custom duty on solar inverters got a hike from 5% earlier to 20% in the budget announced today. Not only inverter but solar lanterns also experienced an increase of 10% in custom duty that is from 5% (earlier) to 15% (present). 
  • Customs duty on certain auto parts has gone up to 15 percent, making vehicles more expensive. 
  • Customs duty on cotton increased from nil to 10 percent, which means buying cotton clothes will be expensive than before. 
  • Customs duty on raw silk and silk yarn increased from 10 percent to 15 percent.
  • Petrol and diesel prices also got a hike after an agriculture cess of 2.5 percent increased on Petrol and agriculture cess increased by 4 percent on diesel.
  • Duty increased on steel screws and plastic builder ware from 10 percent to 15 percent.
  • Air Conditioners and refrigerators also got expensive after the customs duty for its compressors got a hike to 15 percent from 12.5 percent (earlier). 


Stay tuned for more details on Budget 2021! 

For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.


Happy Investing!


(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).