Indian consumers should brace for a significant increase in the prices of smartphones and televisions over the next two years. A recent government notification has introduced a new import duty that is expected to directly raise the cost of manufacturing these popular electronic devices, with the impact likely to be passed on to buyers.
The Core Reason: A New 10% Import Duty
The primary driver behind the impending price hike is a 10% Basic Customs Duty (BCD) imposed on the import of printed circuit board assemblies (PCBAs), also known as populated printed circuit boards (PCBs). This critical notification was issued by the Central Board of Indirect Taxes and Customs (CBIC) and came into effect on December 17, 2025.
PCBAs are the fundamental building blocks of virtually all modern electronics. They are the green boards found inside devices, populated with essential chips, resistors, and capacitors that make a smartphone or TV function. By levying a duty on these imported assemblies, the government aims to boost local manufacturing under its Production Linked Incentive (PLI) schemes for IT hardware and televisions.
However, in the short to medium term, this move increases the production cost for companies that rely on imported PCBAs. Industry analysts and the report from the India Cellular and Electronics Association (ICEA) suggest that this additional cost will inevitably be reflected in the final retail price paid by consumers.
Projected Impact on Consumer Wallets
The financial implications for consumers are clear and substantial. According to industry estimates, the new duty structure is projected to increase the manufacturing cost of devices. This cost increase is expected to translate into a 6% to 9% price hike for end-user products like smartphones, televisions, and even computer monitors.
This means that a smartphone currently priced at ₹30,000 could see its price rise by ₹1,800 to ₹2,700 by 2026. Similarly, a television set will become more expensive. The price adjustment is not expected to be immediate but will be phased in as companies exhaust their existing inventory of components and begin manufacturing new stock with the costlier imported PCBAs.
The policy shift highlights a classic tension in industrial policy: the push for Atmanirbhar Bharat (self-reliant India) in electronics manufacturing versus the immediate consumer affordability of technology. While the goal is to encourage companies to set up or expand local PCBA manufacturing units, the transition period will likely see higher prices.
Broader Implications for the Electronics Industry
The duty change doesn't exist in isolation. It is part of a calibrated strategy to move the entire electronics supply chain to India. The government has been progressively increasing duties on finished goods and certain sub-assemblies to make local production more attractive compared to imports.
Major global and Indian brands manufacturing in India will now have to reevaluate their supply chains. Companies with significant local PCBA production may gain a competitive edge. For others, the choice is clear: either absorb the cost and reduce margins, or invest in local manufacturing infrastructure, which the PLI scheme incentivizes.
This development is crucial for consumers planning major electronics purchases in the coming years. The era of consistently falling electronics prices in India may see a pause, at least for the next 18-24 months, as the industry adjusts to this new fiscal reality. The long-term hope is that increased local manufacturing will eventually stabilize prices and create a robust ecosystem, but the short-term path leads to a more expensive checkout counter for smartphones and TVs.
