The budget presented by the central government has had a significant impact on the market. With a total allocation of Rs 48.21 lakh crore, Finance Minister Nirmala Sitharaman announced substantial reductions in customs duty on cancer drugs and mobile phones, leading to a sharp decline in their retail prices. Gold, silver, leather goods, and seafood are also expected to become more affordable. Import duties on gold and silver have been reduced to 6 percent.
The reduction in basic customs duty on mobile phones, mobile printed circuit boards (PCBs), and chargers is expected to lower the prices of smartphones for consumers. This move is seen as a positive step for the “Made in India” manufacturing sector, acknowledging the substantial growth in domestic production and exports of mobile phones over the past six years. However, the budget also proposes a 5 percent increase in import duty on motherboards for telecom equipment, likely raising the prices of these goods.
The Sensex closed at 80,502.08, while the NSE benchmark ended at 23,537.85. Tax concessions and job creation measures for the middle class are anticipated to boost the markets. Additionally, the government has increased customs duty on ammonium nitrate by 10 percent and non-biodegradable plastic by 25 percent.