Updated on: 01 February, 2025 07:20 AM IST |Amruta Karulkar

The Indian Union Budget, a highly anticipated annual event, often brings about significant changes in the economic landscape, impacting various sectors and, consequently, the prices of goods and services. Ahead of the 2025 budget announcement, businesses and consumers alike are keenly watching for potential policy shifts that could lead to price fluctuations in a range of items, from fuel and pharmaceuticals to electronics and textiles. This analysis explores seven key areas where price changes are likely after the budget is unveiled, offering insights into the potential impact on everyday life and the broader economy.

1. Fuel (Petrol and Diesel)
The Confederation of Indian Industry (CII) has requested a reduction in excise duty on fuel. If the government agrees, prices at the pump could decrease. Conversely, if no relief is provided or taxes are increased, prices could rise.
2. Pharmaceuticals (Especially Essential Drugs)
There's a push to exempt life-saving drugs for cancer and rare diseases from taxes. If this happens, these critical medications could become more affordable. Changes to PLI schemes or other incentives could also impact drug pricing.
3. Electronics (Smartphones, Laptops, etc.)
Continued focus and potential increases in Production-Linked Incentive (PLI) schemes for electronics manufacturing, particularly for semiconductors, could lead to lower prices for electronic goods in the long run by boosting domestic production and reducing reliance on imports.
4. Textiles and Garments
Reports suggest the government might offer financial support, tariff cuts, and incentives to the textile industry. These measures could make Indian textiles more competitive, potentially leading to lower prices for consumers.
5. Goods and Services in General (Due to Income Tax Adjustments)
If income tax rates are reduced for individuals earning up to Rs 1.5 million, as is being considered, people will have more disposable income. This increased purchasing power could drive demand, potentially leading to price increases in various sectors due to higher demand.
6. Construction, Logistics, and Transport Services (Related to Infrastructure)
A greater focus on railway modernisation over road transport could shift demand and influence pricing in these related sectors. For example, increased investment in railways could lead to higher costs for related materials or services.