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Smartphone: Budget 2026 has been revealed, and this time the government has paid special attention to the technology and manufacturing sector.

Budget 2026 has been announced, and this time the government has placed special emphasis on the technology and manufacturing sectors. A major announcement specifically for the lithium-ion battery industry could have a direct impact on the pockets of ordinary people. The government has reduced the basic customs duty on raw materials used in the production of lithium-ion batteries. This is expected to directly impact the prices of smartphones and electric vehicles, as these batteries are used in both.

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The government believes that reducing taxes on raw materials will reduce costs for battery-manufacturing companies. When manufacturing becomes cheaper, it will also impact the price of the final product. Consequently, mobile phones and EVs could become more affordable in the future. This decision could bring relief not only to companies but also to millions of consumers who have been putting off purchasing smartphones and electric vehicles due to their high prices.

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A major objective of the government behind this budget decision is to strengthen domestic manufacturing. India remains heavily dependent on imports for batteries and their components. By providing relief in customs duties, the government aims to increase domestic battery production, enabling India to emerge as a global manufacturing hub. Lithium-ion batteries are used everywhere today, from mobile phones to electric vehicles, and this move is considered strategically important.

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The government expects the impact of this decision to be clearly visible by the financial year 2026-27. As corporate costs decrease, competition in the market will increase, and the benefits will be passed directly to consumers. Simply put, technology could become cheaper and more accessible in the future.

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Additionally, the government has taken a major step in the budget to promote electronics component manufacturing. Finance Minister Nirmala Sitharaman stated that the Electronics Component Manufacturing Scheme has already received double the investment target. Strengthening this confidence, a provision of approximately ₹40,000 crore has been made for this scheme in the 2026-27 budget.

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This decision in Budget 2026 is a welcome relief not only for the industry but also for ordinary consumers. If everything goes according to plan, buying a new smartphone could be less costly in the future.