China Risk vs India’s Phone Factories: The biggest test of Budget 2026. Paisa Live | China Risk vs. India’s Phone Factories: The Biggest Test of Budget 2026

Before Budget 2026, a big concern has emerged in India’s IT and technology sector. Mobile phone manufacturing companies have now become alert about China-linked supply chain risks. A large part of the specialized machines required to make mobile phones and lithium-ion batteries in India are imported from China. Recently China has imposed export restrictions on manufacturing machinery and battery materials. If these become more stringent, the production of India’s phone factories may be directly affected. On top of this, import duty on these machines ranges from 7.5% to 20%, which increases the cost. Keeping this in view, ICEA has demanded zero import duty in Budget 2026. He says, this is not a benefit, but insurance against China risk.