Smartphones and televisions can be more cheap after the announcement of Union Budget 2025-26, which began a decrease in basic customs duty (BCD) on major electronic components. Finance Minister Nirmala Sitarman underlined several measures aimed at promoting domestic electronics manufacturing and making imported gadgets more cost effective, presenting the budget in Parliament.

One of the biggest changes includes BCD’s mobile phone, mobile phone charger and mobile printed circuit board assembly (PCBA) reduced by 20 percent to 15 percent. The move is expected to reduce the cost of imported smartphones and accessories, which include some high-end iPhone models that are not yet manufactured in India. The government had earlier increased this duty from 15 percent to 20 percent in 2018 to encourage local construction. However, the latest reduction is being seen as a step towards making smartphones more accessible to consumers.

Industry leaders have welcomed the move, highlighting its ability to improve India’s electronics ecosystem. Xiaomi India President Muralikrishnan B said that with reducing BCD on mobile phones, PCBA and chargers, domestic production environment will improve, with expanding discounts on input and raw materials for smartphone construction. Similarly, the CEO of ITEL and Tecno, Arijit Talpatra praised the decision, called it a positive step that would make the smartphone more cheap in the rapidly growing Indian market.

While the reduction in customs is expected to reduce costs for manufacturers, experts are cautious about its direct impact on retail prices. Research Director of Counterpoint Research Tarun Pathak said that a large price fall is unlikely. He suggested that the deficiency may reduce the price of smartphone by 1-2 percent, but the limit of profit passed to consumers will depend on individual manufacturers. Additionally, low -priced smartphones, which already work on thin benefits margin, may not see a significant reduction in the price.

The government’s focus on electronics manufacturing is beyond duty deduction. The budget also highlights the initiative to improve the skill set of the workforce in this field. Experts believe that investment in apsculing programs will play an important role in the creation of a high-skilled labor force, which is necessary to improve local production capabilities.

In the past, the government has taken similar steps to support the electronics industry. In February 2023, it abolished customs duty on the camera lens used in the smartphone, which contributed to reduce costs for smartphone manufacturers.

Despite the decrease in BCD, consumers may need to wait to see if brands decide to pass on benefits. While imported equipment and components can be cheaper, manufacturers can maintain savings to offset rising production costs. However, the move is expected to carry forward local manufacturing and contribute to the long -term growth of India’s electronics industry.