Union Budget 2026: Smartphones Could Get Cheaper As Government Cuts Duties On Key Components

-Kabir Jain

Published: Sunday, February 1, 2026, 13:50 [IST]

Now that the Union Budget 2026–27 has wrapped up, the broad tax headlines are starting to fade. But underneath those, a set of quieter changes could matter more to technology buyers and electronics manufacturers over the coming months.

Finance Minister Nirmala Sitharaman used Budget 2026 to recalibrate customs duties with a clear goal in mind: strengthen domestic manufacturing while easing costs in areas the government wants to push, including electronics, electric mobility, and clean energy.

Smartphones Get Relief At The Component Level

One of the most relevant changes for everyday consumers sits in the smartphone supply chain. Budget 2026 reduces duties on components and capital goods used in mobile phone manufacturing. The intention here isn’t to slash prices overnight, but to lower the cost base for companies assembling phones in India.

In practice, this kind of move usually plays out slowly. Brands may use the headroom to hold prices steady, improve specifications at the same price point, or protect margins in a competitive market. Over time, that can translate into better value for buyers, especially in the budget and mid-range segments where price sensitivity is high.

EV Batteries Get A Clear Policy Signal

Electric vehicles also see targeted support. Budget 2026 exempts basic customs duty on lithium-ion cells, one of the most expensive components in an EV.

This doesn’t instantly make electric scooters or cars cheaper, but it does ease pressure on manufacturers. Over time, lower battery costs can support more aggressive pricing, wider model availability, or faster scaling of EV production. It’s another example of the Budget using duty structures to influence long-term adoption rather than short-term discounts.

Electronics Manufacturing Gets Priority Treatment

Beyond phones and EVs, the Budget continues to lean into electronics manufacturing more broadly. The approach is consistent: ease duties on inputs, components, and capital equipment, while keeping pressure on finished imports.

This structure is meant to encourage local value addition. For companies building or expanding production lines in India, lower duties on machinery and parts help reduce upfront costs. For consumers, the benefit usually shows up indirectly, through more locally made products and steadier pricing over time.

Clean Tech Hardware Fits The Same Pattern

Solar panels also feature among the categories seeing duty rationalisation. Like EV batteries, the focus here is less about immediate price cuts and more about improving affordability and adoption over the longer term.

As rooftop solar and small-scale installations become more common, even modest reductions in input costs can make projects easier to justify for households and businesses. Budget 2026 reinforces this direction by aligning duty policy with clean energy goals.

The Takeaway For Tech Buyers And The Industry

If you’re planning a phone upgrade, considering an EV, or tracking where electronics prices are headed, these changes won’t alter decisions tomorrow. But over the next few quarters, they’re likely to shape pricing, availability, and value in ways that matter more than a single sale or discount.