Inflation Shock Ahead: TV, Car And Smartphone Prices Likely To Rise Up To 10% From 2026
Inflation Shock Ahead: TV, Car And Smartphone Prices Likely To Rise Up To 10% From 2026
Rising AI chip demand, weak rupee and higher import costs may erase recent GST relief for consumers
The relief consumers enjoyed after GST reductions on electronic goods may soon be over. Prices of televisions, smartphones, laptops and even cars are expected to rise by up to 10% from early 2026, driven by a global shortage of memory chips, increasing demand from the artificial intelligence sector and a sharp depreciation of the Indian rupee.
Industry executives indicate that manufacturers are already facing higher component costs, especially for memory chips used across electronic devices. The surge in AI-led data centres worldwide has significantly tightened supply, pushing up prices of key components such as RAM and high-bandwidth memory. In some cases, memory chip prices have risen several times over the past year.
The weakening rupee has further compounded the problem. With a large portion of electronic components imported, the higher cost of imports has increased overall production expenses. More than 70% of critical components used in devices like smartphones, TVs and laptops depend on overseas suppliers, making manufacturers highly sensitive to currency fluctuations.
While companies initially absorbed some of the increased costs, industry sources say this is no longer sustainable. Manufacturers are now preparing to pass on the burden to consumers in phases. Initial price hikes of around 4–5% are expected, with the possibility of prices rising up to 10% if current conditions persist.
Recent GST reductions, including the cut on large-screen televisions from 28% to 18%, had provided temporary relief to buyers. However, experts believe that rising input costs will outweigh tax benefits, effectively neutralising the impact of lower GST rates.
The impact will not be limited to consumer electronics. Automobiles, which increasingly rely on advanced chips and electronic systems, are also likely to see price increases. Industry analysts warn that the situation could worsen if global chip supply remains constrained and AI-driven demand continues to accelerate.
For consumers planning to purchase electronic gadgets or vehicles, the coming months may be crucial. Industry insiders suggest that prices could begin rising gradually, with more noticeable increases from January 2026 onwards.
