Indian FM Nirmala Sitharaman delivered the Union Budget 2021 today, starting from 11 am to around 1:30 pm i.e. nearly 2.5 hrs. This time the budget was not on paper, but on a tablet, thus giving a boost to Digital India. There are many products and services that are now going to be costlier, but at the same time, you will also save on a few of them.
The FM said that Rs 1500 Crore will be spent on digital payment services which means that the Government will keep on boosting cashless services like UPI, net banking, digital wallets, and more.
Duties on imported products have increased to help grow the domestic manufacturing sector or you can say the “make in India” initiative. Moreover, duty on shrimp feed is increased to 15% from the earlier 5%. Besides, copper scrap has seen a fall in duty to 2.5% so good news for scrap dealers.
Mobile Phones or Smartphones will now be priced more as exemptions from some of its parts are revoked so will now charge 2.5% from the earlier nil duty. In addition, custom duty on Cotton is also up to 10%. Although, the duties are rationalized on Gold and Silver so that’s something to cheer up for.
The Printed Circuit Board Assembly(PCBA) of chargers and adapters will now face a duty of 15% from 10% so there will be a rise in costs of some electronic products. Besides, what’s important here is that FDI insurance has increased from 49% to 74% which means that the system is looking for more outer funds for improving the economy post Coronavirus pandemic fallout.
Now, let’s check out what got costlier and what got price cuts in this budget.
What got Costlier in Budget 2021?
There are many things that got Costlier in Budget 2021 as compared to the things which got a price cut. The rise in prices has been made to improve the Indian economy by uplifting the local manufacturing and production. Let’s have a look at them.
- Mobile Phones
- Chargers
- Petrol
- Diesel
- LED Lamps
- Electronic Items
- Urea
- Power Banks
- Solar Inverters
- Cars
- MSME Goods
- Cotton
- Raw Silk
- Shrimp Feed
- Gems
- Leather Shoes
- Crude Palm & Sunflower Oil
- Crude Soya bean
- Alcohol
- Compressors of Air Conditioners and Refrigerators.
- Automobile Parts
- Furniture
- Some Medical Equipment and Services
- Tobacco
- Cigarettes
- Kitchenware
- Raw Sugar
- Wall Fans
- Skimmed Milk
- Agro related Animal Items
- Coal
What all got Cheaper?
The government has slashed complete tax for senior citizens with certain restrictions. Moreover, 1% of startups will enjoy complete tax relaxation to raise the bar of innovation. In addition, a budget of around Rs 35k Crores is assigned for improving Covid-19 related problems. Below is the list, check it out.
- Income Tax for Senior Citizens
- Tax on Startups
- Tax for NRIs
- Healthcare Services
- Covid-19 Vaccine
- Digital Payments / Cashless Services
- Iron
- Steel
- Insurance
- Nylon Clothes
- Chemicals
- Gold
- Silver
- Naphtha
- Electricity
- Agricultural Equipments
- Copper
These were some of the key highlights of Budget 2021. Do share your thoughts with us on this Budget via the comments section below.
