Archive · 1 Feb 2026
Budget 2026: Smartphone Prices May Rise
The Union Budget 2026-2027 might make smartphones more expensive.
This is because making the tiny brains of phones, called chipsets, is getting costlier due to high demand from AI companies.
Also, there are some problems in getting parts from other countries.
Experts say India should start making more phone parts here to keep prices stable.
They also want the government to lower taxes on phones and their parts.
This could help people buy phones without paying too much more.
Right now, most phones are put together in India, but the important parts come from other countries.
If India starts making these parts, phones might become cheaper in the future.
Smartphone prices may increase due to rising chipset costs and supply chain issues.
Experts suggest focusing on domestic manufacturing of smartphone components.
Industry players propose lowering GST rates on smartphones and reducing customs duty on components.
Renewal or revamp of the PLI scheme is being considered to support the industry.
Immediate price cuts are unlikely, but long-term affordability depends on budget policies.
- Who
- Smartphone manufacturers, consumers, and industry experts
- What
- Potential increase in smartphone prices due to Union Budget 2026-2027
- When
- Effective from February 1, 2026
- Where
- India
- Why
- Increasing chipset costs due to AI demand and supply chain issues
Industry Experts
Government
Domestic Manufacturing
Industry Experts
Experts suggest focusing on domestic manufacturing of smartphone components to reduce dependency on imports and stabilize prices.
Government
The government is considering a renewal or revamp of the PLI scheme to support domestic manufacturing.
GST Rates
Industry Experts
Industry players propose lowering GST rates on smartphones and reducing customs duty on components to make smartphones more affordable.
Government
The government has not yet announced any changes to GST rates or customs duty in the upcoming budget.
- Market Position
- India is the world’s second largest smartphones market
- Current GST Rate
- 18% on entry-level phones
- Proposed GST Rate
- 5% on entry-level phones
- Key Components
- Camera modules, batteries, printed circuit boards (PCBs)
- Industry Focus
- Domestic manufacturing of smartphone components
- Supply Chain Issue
- Increasing demand from AI companies and tariffs
- Industry Demand
- Renewal or revamp of the PLI scheme
Sources
Budget 2026: Will smartphones become expensive from February 1? What experts say
Budget 2026: Analysts expect policy continuity, capex-led growth to stay on track
Budget 2026 has an opportunity to support Viksit Bharat through renewable energy — What do experts expect?
Budget 2026: MSMEs, AI Startups, Infra and Co-working Sector Spell Out Policy Wishlist
Budget 2026: Capex revival, policy continuity could lift stock market sentiment, says Green Portfolio PMS co-founder
iPhone 16 Becomes Top-Selling Smartphone India As Purchase Pattern of Consumers Changes
Electronics manufacturing stocks rise up to 6% after Budget proposes Rs 40,000 crore outlay - Telegraph India
Union Budget 2026: FM Sitharaman launches India Semiconductor Mission 2.0
Outlay on electronics manufacturing hiked to Rs 40,000 crore
Budget 2026: Funding Slump For Pollution Control Amid Climate Crisis
