Budget 2026 prioritises lowering input costs for electronics makers rather than immediate price cuts for consumers.
Extended customs duty exemptions on batteries and components, plus a Rs 40,000 crore boost for electronics manufacturing, aim to strengthen local production.
Lower costs could lead to cheaper devices over time, but any retail price drop will depend on brand pricing decisions.
Finance Minister Nirmala Sitharaman presented Budget 2026 at Lok Sabha on Sunday, February 1. And with that, many Indians are now asking whether their next smartphone, TV, or electronic gadget will cost less. While at first glance the recent fiscal changes seem to signal relief for consumers, the reality is more nuanced. The Finance Minister told the Lok Sabha that the changes are meant to help local manufacturing and rely less on imports by changing customs duties, especially on materials used to make lithium-ion cells and microwave oven parts. Furthermore, some of the notable changes include the extension of BCD (Basic Customs Duty) exemptions on key capital goods for lithium-ion battery manufacturing and critical minerals, along with a new Rs 40,000 crore expanded allocation for the electronics component manufacturing scheme.
SurveyThe changes in the Budget 2026 suggested by India’s Finance Minister could help manufacturers spend less on making electronics and related products. This might eventually lead to lower prices for some devices. However, these price drops won’t happen right away and are not guaranteed.
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Finance Minister Nirmala Sitharaman said, ‘To provide further impetus to green mobility and energy security, we have extended the basic customs duty exemption on capital goods for manufacturing lithium-ion cells to include those used for battery energy storage systems.’ She added that ‘these steps, alongside the launch of India Semiconductor Mission 2.0, will support jobs, innovation, and help build a resilient domestic supply chain, making our industries more globally competitive.’
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Experts note that full exemptions on customs duties for materials used in batteries and certain electronics components do reduce costs for makers of phones and other devices. Previously, duties on many inputs raised production costs, which contributed to higher prices for finished goods. Under the new budget, important machines and materials for making batteries and processing critical minerals can be imported with lower taxes, helping manufacturers reduce a major cost.
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However, analysts caution that lower manufacturing costs do not automatically mean that every smartphone or gadget will see a sharp price cut at retail counters in the coming weeks. ‘Price changes depend on how domestic makers and importers adjust their pricing,’ say industry insiders.
The budget’s focus on capacity building in the long term is also in line with the government’s overall initiative in Make in India, ISM 2.0, and expanded PLI schemes, where the continuity of input costs is considered as important as the headline tax cuts.
In this manner, the government is providing manufacturers with more predictability in making investment decisions, which will eventually lead to the development of stronger supply chains in the long term and provide scope for more competitive pricing, even if the benefits are not visible in the short term.
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Bhaskar Sharma
Bhaskar is a senior copy editor at Digit India, where he simplifies complex tech topics across iOS, Android, macOS, Windows, and emerging consumer tech. His work has appeared in iGeeksBlog, GuidingTech, and other publications, and he previously served as an assistant editor at TechBloat and TechReloaded. A B.Tech graduate and full-time tech writer, he is known for clear, practical guides and explainers. View Full Profile
