Will You Pay Less For Mobiles & TVs? Budget 2026’s Electronics Push May Cut Prices

Budget 2026 has nearly doubled funding for electronics manufacturing, aiming to cut imports, boost local production and jobs, a move that could eventually make mobiles, TVs and ACs more affordable.

The Electronics Components Manufacturing Scheme focuses on making key parts in India.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• India's Budget 2026 doubles electronics manufacturing scheme funding.
• Scheme aims to boost domestic supply chain, reduce import dependence.
• 46 applications approved, projecting significant production and job creation.

The Central Budget 2026 has given a big push to electronics manufacturing in India. The government has almost doubled the budget for the Electronics Components Manufacturing Scheme, increasing it from about Rs 23,000 crore to Rs 40,000 crore. This move is expected to strengthen India’s domestic supply chain and reduce dependence on imports. It may also attract more foreign companies to set up factories in India. 

Over time, this could lead to more jobs, higher local value addition, and possibly cheaper electronic products for Indian consumers.

Electronics Components Manufacturing Scheme Budget 2026: What’s Changed

In the Budget 2026, the Government of India announced a major increase in spending under the Electronics Components Manufacturing Scheme. The Finance Minister said the scheme was launched in April 2025 with an outlay of Rs 22,919 crore. 

Since then, strong investment interest and ambitious production targets have pushed the government to raise the allocation to Rs 40,000 crore.

The Union Cabinet had approved the original outlay in March, and the response from the industry has been encouraging. So far, 46 applications have been approved under the scheme. 

These proposals together involve an investment of Rs 54,567 crore and are expected to create direct employment for nearly 51,000 people.

The government estimates that the scheme could generate production worth Rs 4.56 lakh crore and attract additional investments of around Rs 59,350 crore. 

Recently, the IT Ministry cleared 22 applications from major players like Foxconn, Tata Electronics, Samsung, Dixon Technologies, and Hikalco Industries.

Electronics Manufacturing In India: Impact On Phones, TVs, & Jobs

The Electronics Components Manufacturing Scheme focuses on making key parts in India. These include display modules, camera sub-assemblies, PCBAs, lithium cell enclosures, resistors, capacitors, and ferrites. These components are used in smartphones, laptops, TVs, ACs, and home appliances like microwaves and refrigerators.

At present, even though companies like Apple and Samsung assemble products in India, local value addition is only about 15-20%. The government wants to raise this to 30-40%. 

Unlike the PLI scheme, which links incentives directly to production, this scheme offers benefits based on employment generation, capital investment, and annual output.

If components become cheaper due to local manufacturing, product prices may fall in the future. More importantly, the scheme aims to build a strong electronics manufacturing base in India, create jobs, and reduce reliance on imports in the long run.

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