India's FY 2026-27 Budget Eases Costs and Simplifies Taxes

India ushered in the financial year 2026-27 on April 1, 2026, with a series of budget measures announced by Finance Minister Nirmala Sitharaman that will alter costs for consumers, streamline tax compliance and reshape salary structures across the country. These changes, spanning healthcare, transportation, electronics and taxation, aim to boost economic growth projected at 6.5 percent by the Reserve Bank of India while providing relief in essential areas and introducing modest increases elsewhere.

A key focus of the reforms is reducing expenses on vital goods and services. Customs duties have been slashed on 17 lifesaving medicines for conditions like cancer and diabetes, potentially lowering prices by 10 to 15 percent and saving users up to 1,000 rupees annually, benefiting more than 500 million people. Similar relief applies to electric vehicles and lithium-ion batteries, with expected savings of 5 to 8 percent, alongside exemptions for critical minerals such as those used in solar glass and deep-sea fish products, cutting costs by about 5 percent. Incentives for local manufacturing are set to reduce smartphone and tablet prices by 1,000 to 2,000 rupees, while zero duties on...