The Union Budget 2026 has been unveiled, with Finance Minister Nirmala Sitharaman making numerous impactful announcements. There will be a reduction in import duties on the raw materials used in consumer electronics batteries, aiding in stabilizing or possibly reducing the prices of smartphones and various consumer electronics in the future.
The Finance Minister declared that customs duties will be waived for lithium-ion cells, Battery Energy Storage Systems (BESS), and the manufacturing capital goods related to them within the energy sector.
Affordable Duties on SEZ Merchandise
The Finance Minister announced that exports from Special Economic Zones (SEZs) will enjoy affordable duties, provided they fall within the sales limit. Numerous companies in India operate within SEZs, benefiting from land and resources along with certain regulatory relaxations. This initiative boosts job opportunities within the nation.
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Batteries Used in Smartphones
Smartphones utilize lithium-ion, lithium-polymer, and silicon carbon batteries. A reduction in battery prices can significantly lower the costs of consumer electronics.
Vital Role of Battery Packs in Phones
Batteries are essential in the smartphone industry. In mobile manufacturing, the material costs for smartphone batteries range from $2 to $4.
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The complete battery pack setup costs around $40 to $60, which converts to approximately INR 3,667 to 5,000.
