Will Phones, TVs, and Electronics Get Cheaper Post Budget 2025?

In an effort to strengthen India’s electronics manufacturing sector, Finance Minister Nirmala Sitharaman announced significant reductions in import duties on key components in the Union Budget 2025. These changes are expected to make mobile phones, smart TVs, and other electronic devices more affordable for consumers while improving India’s role in global supply chains.

One of the most significant reductions is in the Basic Customs Duty (BCD) on mobile phones, chargers, and printed circuit board assemblies (PCBAs), which has been cut from 20% to 15%. This move is expected to ease production costs and improve accessibility to high-end devices such as iPhones and flagship Android smartphones.

Understanding India’s Import Duties

Before delving into the implications of the new tax cuts, it’s essential to understand the various types of import duties levied in India:

• Basic Customs Duty (BCD): The primary duty imposed on imported goods.
• Additional Customs Duty: Imposed to equalise the excise duty on domestic goods.
• Countervailing Duty (CVD): A tax to offset subsidies given to foreign manufacturers.
• Anti-Dumping/Safeguard Duty: Applied to prevent unfair trade practices and protect local industries.
• Other levies: Additional charges such as the Social Welfare Cess, Agriculture Infrastructure Development Cess (AIDC), and Integrated Goods and Services Tax (IGST).

These duties significantly impact the final cost of imported electronics. The latest reductions are expected to bring down manufacturing costs, indirectly leading to lower prices for end consumers.

Reduction in Duties for Mobile Phone Components

One of the biggest highlights of the Budget 2025 is the full exemption of customs duties on several mobile phone components. These include Printed Circuit Board Assemblies (PCBA),
Camera Modules, USB Cables and Fingerprint Readers

Previously, these components were taxed at 2.5%, but with the new exemptions, domestic manufacturers will see lower production costs, which could make smartphones, including iPhones, more affordable in India.

This policy is also in line with the Production Linked Incentive (PLI) scheme, which encourages global and domestic brands to set up manufacturing plants in India, reducing dependence on imports.

Impact on Smart TVs: What’s Changing?

For television manufacturers, the government has announced a full exemption of customs duties on open cells used in LED and LCD TV panels.

Exempting Customs Duties on Battery Materials 

Beyond electronics, the government has also prioritised electric vehicle (EV) manufacturing by exempting customs duties on critical battery materials.

Duty Exemptions Announced for: Cobalt Powder, Lithium-Ion Battery Scrap and 12 other critical minerals. These materials are crucial for the production of lithium-ion batteries, which power not only EVs but also smartphones, laptops, and other electronic devices.

With this move, the government aims to: Reduce dependence on imported batteries, Boost domestic EV production and Lower costs for electric 2-wheelers and e-wheelers. 

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