The Union Budget 2026–27 has sent a strong message about the government’s renewed focus on Atmanirbhar Bharat and the Make in India initiative. Presented by Finance Minister Nirmala Sitharaman on February 1, the budget underlines the Centre’s commitment to strengthening domestic manufacturing, especially in key sectors such as electronics, clean energy, and healthcare. One of the most significant takeaways for consumers is the possibility of lower prices for products like smartphones and electric vehicle (EV) batteries in the coming months.
The government has made it clear that its primary objective is to reduce the cost of manufacturing electronic products within the country. By rationalising customs duties and offering targeted relief on machinery and components, the budget aims to make local production more competitive while ensuring essential goods are available to consumers at affordable prices. These policy changes are expected to have a direct impact on market prices and industry dynamics.
In her budget speech, the finance minister emphasised that the government is shifting its approach towards encouraging domestic production over imports. By adjusting customs duties, the Centre intends to discourage unnecessary imports of goods that can already be produced locally in sufficient quantities. This strategy is designed not only to support Indian manufacturers but also to create a more resilient supply chain.
However, the government has also acknowledged that while some products may become cheaper due to duty cuts, a few items could turn costlier where customs duties have been reintroduced or increased. These measures are targeted at products with low import dependence or strong domestic manufacturing capacity, ensuring that Indian industries receive adequate protection and encouragement.
One of the most notable announcements in Budget 2026 relates to lithium-ion battery manufacturing. Recognising the critical role batteries play in the electric mobility and clean energy ecosystem, the government has expanded exemptions on basic customs duty for several machines, tools, and equipment used in battery production. This also includes components required for battery energy storage systems.
The move is expected to significantly lower the cost of manufacturing EV batteries in India. As battery packs account for a substantial portion of an electric vehicle’s overall cost, any reduction in production expenses could translate into more affordable EVs for consumers. Industry experts believe this decision will accelerate the adoption of electric vehicles, support India’s green energy targets, and reduce dependence on imported battery components.
The budget has also brought positive news for smartphone users. To strengthen India’s position as a global electronics manufacturing hub, the government has reduced taxes on certain components and machinery used in smartphone production. This step will help lower input costs for manufacturers operating in the country.
With reduced manufacturing expenses, companies may pass on some of the benefits to consumers in the form of competitive pricing. Over time, this could lead to more affordable smartphones across various segments. At the same time, the move reinforces the Make in India campaign by encouraging global and domestic brands to expand their manufacturing footprint locally.
While the overall tone of the budget is pro-consumer and pro-industry, it is important to note that certain goods may see a price increase. The government has decided to reimpose or raise customs duties on select products where imports are already low or domestic production is well-established. The intention behind this step is to push companies to source goods locally instead of relying on overseas suppliers.
This approach is expected to strengthen local industries in the long run, even if it leads to short-term price adjustments for some products. The government believes that a stronger domestic manufacturing base will ultimately benefit both producers and consumers.
Overall, Budget 2026 reinforces the government’s long-term vision of building a self-reliant economy driven by local manufacturing and innovation. By offering targeted relief to sectors like electronics and clean energy, while protecting domestic industries through calibrated duty changes, the budget strikes a balance between growth and affordability.
For consumers, the potential reduction in prices of smartphones and EV batteries is a welcome development. For manufacturers, the policy clarity and incentives provide a strong reason to invest more in India. As these measures take effect, their real impact will be closely watched in the months ahead, especially in terms of pricing, investment, and job creation.
