Budget 2025: Smartphones, TVs To Get Cheaper? What FM Nirmala Sitharaman Said

As Finance Minister Nirmala Sitharaman announced the Union Budget 2025 today, smartphones, telecom, broadband, and digital connectivity were some of the technology-related focus areas today. 

Smartphones, TVs To Get Cheaper?

The FM, in her eighth straight Budget speech, proposed to add 28 additional capital goods for mobile phone battery manufacturing to the list of exempted capital goods. This will boost the manufacturing of domestic lithium-ion batteries for phones and the overall smartphone ecosystem. The exemption of duties will also likely reduce the prices of smartphones.

The custom duty on inputs/parts and sub-parts of PCBA, camera module, connectors and inputs or raw materials for the use in the manufacturing of wired headsets, microphones and receivers, USB cables, fingerprint readers/sensors of mobile phones has been reduced from 2% to zero.

Also, custom duty on specified inputs/parts (chip on film, PCBA, glass board/substrate cell) for use in the manufacturing of open cells of TV panels of LED/LCD TV has been fully exempted.

Interactive Flat Panel Displays To Cost Higher

Another booster too was announced. FM Sitharaman said that the government will raise the basic customs duty on interactive flat panel displays from 10% to 20% in an effort to correct the inverted tariff structure. This could result in prices of interactive flat panel displays getting hiked.

Broadband In Schools

Sitharaman also said that government schools will get broadband under the BharatNet project.

The telecom sector had anticipated a decrease in the price of smartphones and internet services in India from the 2025 Budget, which might further improve digital accessibility for millions more. Stakeholders in the telecom industry were hopeful about possible legislative initiatives meant to strengthen infrastructure and lower operating expenses as the government announced its financial allotments.

Earlier, the Economic Survey 2025 had noted that the country has drastically reduced its dependence on smartphone imports, with 99% now manufactured domestically. In FY24, the country produced approximately 33 crore mobile phone units, with over 75% of the models being 5G enabled.  

With the proliferation of smartphones, rising data usage, and the introduction of technologies like 5G, India's telecom industry is growing. With more than 1.18 billion phone customers, a total teledensity of 84%, and 941 million broadband users as of Oct. 31, 2024, India is the second-largest telecom market. Additionally, the nation has the most economical data rates in the world and tops the world in mobile data use per subscriber.