Finance Minister Nirmala Sitharaman presented the Budget 2026 in Lok Sabha on Sunday, February 1. And with that, many Indians are now wondering whether their next smartphone, TV or electronic gadget will cost less. While at first glance the recent budget changes appear to indicate relief for consumers, the reality is more nuanced. The Finance Minister told the Lok Sabha that the changes are aimed at helping local manufacturing and less dependence on imports by changing customs duties, especially on materials used to make lithium-ion cells and parts for microwave ovens. Moreover, some of the notable changes include the extension of BCD (Basic Customs Duty) exemptions for key capital equipment for the production of lithium-ion batteries and critical minerals, along with a new expanded allocation of Rs 40,000 crore for the electronic components manufacturing programme.
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The changes proposed by India’s finance minister in the 2026 budget could help manufacturers spend less on making electronics and related products. This could ultimately lead to lower prices for some devices. However, these price drops will not happen immediately and are not guaranteed.
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Finance Minister Nirmala Sitharaman said, “To give further impetus to green mobility and energy security, we have extended the exemption from basic customs duties on capital goods for lithium-ion cell manufacturing to include goods used for battery energy storage systems.” She added that “these steps, in addition to the launch of India Semiconductor Mission 2.0, will support jobs and innovation and help build a resilient domestic supply chain, making our industries more globally competitive.”
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Experts note that full exemptions from customs duties for materials used in batteries and certain electronic components will reduce costs for manufacturers of phones and other devices. Previously, tariffs on many inputs increased production costs, contributing to higher prices for final products. Under the new budget, key machinery and materials for making batteries and processing crucial minerals can be imported with lower taxes, helping manufacturers cut major costs.
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However, analysts warn that lower production costs do not automatically mean that every smartphone or gadget will see a sharp price drop at retail counters in the coming weeks. “Price changes depend on how domestic producers and importers adjust their prices,” industry insiders say.
The budget’s focus on long-term capacity building is also in line with the government’s overall initiative of Make in India, ISM 2.0 and extended PLI schemes, where continuity of input costs is considered as important as key tax cuts.
In this way, the government offers manufacturers more predictability in making investment decisions, which will ultimately lead to the development of stronger supply chains in the long term and allow for more competitive prices, 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 technical topics for iOS, Android, macOS, Windows and emerging consumer technology. His work has appeared in iGeeksBlog, GuidingTech, and other publications, and he was previously an assistant editor at TechBloat and TechReloaded. A B.Tech graduate and full-time technical writer, he is known for his clear, practical guides and explainers. View full profile
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