Union Budget 2026: Smartphone buyers in India, including fans of Apple iPhone, Samsung Galaxy, Vivo, and other brands, were eagerly waiting for the Union Budget 2026 to see if device prices would fall. Now, there is more clarity on what to expect. The short answer is yes, phones are likely to get cheaper, though the reduction may be gradual rather than immediate.
Union Budget 2026: Why Smartphone Prices Could Drop?
One of the main reasons for possible price cuts is the government’s decision to lower customs duties in Budget 2026. Key components used in mobile manufacturing, such as batteries and certain capital goods for production plants, now attract lower duties. Lower import costs for these items mean reduced production costs for phones made in India, which could eventually lead to cheaper prices for consumers.
Another relief comes for people who buy phones from abroad. The customs duty on goods brought into India as personal baggage has been cut from 20% to 10%. This means imported phones, including high-end iPhones and Samsung Galaxy flagship models, will be noticeably cheaper for international travellers.
Union Budget 2026: Why Prices May Not Drop Sharply?
Despite these tax benefits, several global factors could limit the extent of price reductions. There is currently a worldwide shortage of memory chips, caused by high demand from AI data centres. At the same time, smartphones are becoming more AI-focused, requiring costlier processors and larger RAM.
Because of these pressures, phone makers may use the savings from tax cuts to offset rising component costs rather than lowering retail prices immediately.
Union Budget 2026: What Buyers Can Expect?
Overall, smartphones are likely to become cheaper in 2026, particularly those made in India. However, price reductions are expected to be gradual rather than sudden. For buyers looking for the best deals, the most significant savings may appear through sales, promotional offers, or later price revisions, rather than instant drops in prices following the Budget announcement.
