The Union Budget 2025-2026 was recently announced by Finance Minister Nirmala Sitharaman wherein she announced exemption of duties for 35 additional capital goods used in EV battery manufacturing. This would increase lithium-ion battery production in India paving way for e-mobility in India. With 20 percent funding increase compared to last year, schemes promoting electric vehicles have got a renewed push. Collective allocation for such schemes has risen to INR 5,322 crore in 2025-26 from INR 4,434.92 crore last year.
Meanwhile, Funding for PM E-DRIVE Scheme has increased by over 114 percent to INR 4,000 crore and the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC) has increased to INR 12 crore.
Here’s what the industry thinks:
Mohal Lalbhai, Co-founder & Group CEO, Matter Motor
The Union Budget 2025 reinforces India’s Net Zero 2070 commitment with key measures to strengthen the clean-tech manufacturing ecosystem. The exemption of Basic Customs Duty (BCD) on critical EV minerals and duty-free status for 35 battery components will secure the supply chain, lower costs, and accelerate EV adoption. Support for MSMEs through capital access reforms and compliance ease will drive innovation and India’s global manufacturing ambitions. Additionally, tax incentives for green investments and startup-friendly policies will boost clean-tech growth, aligning with the ‘Make in India, Make for the World’ vision.
N.P Ramesh, COO and Co-Founder, Orb Energy
With the 2025 budget announcement, Finance Minister Nirmala Sitharaman has set a clear path for India’s clean tech revolution. The National Manufacturing Mission aims to accelerate domestic production of solar cells/panels, and EV storage batteries ensuring that India not only strengthens its ‘Make in India’ vision but also becomes a key player in global supply chains. The reduction of BCD on Lithium batteries is a very welcome step, as Storage goes along with increased adoption of renewable energy.
Alongside this, the focus on Industry 4.0 opens up exciting opportunities for our youth to lead the charge in innovation, creating a sustainable and energy-efficient future for generations to come. This is more than just a step toward economic growth—it’s a bold move to make India a global hub for clean energy solutions, driving job creation, reducing dependence on imports, and ultimately contributing to India’s clean energy goals.
Sandeep Aggarwal, Founder & CEO, Droom
We commend the Finance Minister for coming up with a forward-looking budget and believe that it is focused on driving inclusive growth, giving a boost to India’s burgeoning MSME & Start-up sector. We particularly appreciate the expanded scope and fresh contribution of INR 10,000 CR as part of the “Fund of Funds” for start-ups. This is a huge step, when seen in the context of funding winter for start-ups and will certainly boost the entrepreneurial sentiment in the country. This development, coupled with establishment of Centres of Excellence for Skilling and AI, will further enable the next wave of entrepreneurship in the country. At the same time, the budget also recognised the contributions of MSMEs, enhancing credit access and facilitating tech upgradation. At Droom, we look forward to supporting the government’s key undertaking towards making India a global hub for manufacturing and innovation.
Rajesh Gupta, Founder & Director, Recyclekaro
The Union Budget 2025 takes a decisive step towards strengthening India’s battery recycling and manufacturing ecosystem. The exemption of Basic Customs Duty (BCD) on critical minerals like cobalt, lithium-ion battery scrap, lead, and zinc will enhance domestic resource availability, reduce dependency on imports, and accelerate value addition within India. This move aligns with India’s vision for a circular economy, fostering investment in battery recycling and EV supply chains. The addition of new capital goods for EV and mobile battery manufacturing will further boost local production and job creation.
Shivam Narang, Managing Director, Khalsa E-Vehicle Pvt. Ltd
The Union Budget 2025 laid a strong foundation for India’s EV future. By fostering domestic manufacturing, easing battery costs, and promoting clean technology, the government has set the stage for long-term, sustainable growth. The focus on grid-scale batteries will help stabilise the renewable energy grid, ensuring that EVs can be powered by clean energy sources.
The exemption of basic customs duty on lithium-ion battery scrap is another commendable move. It promotes a circular economy by making battery recycling more viable, reducing reliance on fresh raw material imports, and decreasing production costs and environmental impact.
However, to ensure widespread EV adoption, further policy interventions around charging networks, financing models, and end-user incentives will be crucial. If these aspects are addressed in parallel, India has the potential to become a global leader in EV innovation and clean mobility solutions.
Praveen Kakulte, CEO, Powercon Group
The Budget 2025 marks a crucial turning point in advancing India’s clean energy goals. The strong focus on capacity building through National Centers of Excellence of Skilling across the country is a vital step to equip the nation with the specialized skills and deep domain expertise needed to build advanced power plants and optimize energy extraction. This commitment will play a key role in achieving India’s Clean Power target of 500 GW by 2030 while maintaining cost efficiency.
With a clear roadmap in place, this budget sets the stage for India to ‘generate more GWh of energy from every installed GW of power,’ driving not only energy efficiency but also contributing to a greener, more sustainable future for generations to come. It’s an investment in both the workforce and the future of India’s energy landscape.
Kuldeep Bhan, Group President, Global Metallurgy Business, Neterwala Group
The Union Budget 2025 lays a strong foundation for India’s manufacturing growth with the announcement of the National Manufacturing Mission. By prioritizing key areas such as ease of doing business, a future-ready workforce, empowerment of large companies and MSMEs, technology access, and product quality, this initiative will accelerate India’s journey toward becoming a global manufacturing hub. The government’s commitment to strengthening domestic manufacturing capacities and integrating Indian industries with global supply chains is a welcome step that will enhance the country’s competitiveness.
At Neterwala Group, we appreciate this visionary approach and look forward to leveraging these policy reforms to drive innovation, scale operations, enhance our skilled workforce, and contribute to India’s economic progress. Strengthening the ‘Make in India’ movement will not only generate employment but also position India as a key player in high-value, quality manufacturing on a global scale. This budget fuels optimism for a resilient and self-reliant manufacturing ecosystem, and we are excited to be part of this transformative journey.
Dr. Miniya Chatterji, CEO, Sustain Labs Paris
The Union Budget 2025 marks a good step towards a greener and more self-reliant India. By prioritizing domestic production of solar PV cells, wind turbine generators, and other clean energy technologies under the National Manufacturing Mission to reduce imports, India is moving toward self-reliance and climate resilience. The push towards promoting sustainable farming practices with the aim of reaching around 1.7 crore farmers through Prime Minister Krishi Yojana has the potential to have a big catalytic effect on mitigating India’s environmental challenges.
Additionally, the identification of MSMEs as an engine for growth can be a boost to employment, especially in the manufacturing sector. Finally, the target of 100GW nuclear energy by 2047 under the Nuclear Energy Mission will further add up to the country’s transition to net-zero. The budget for this year lays the groundwork for a more resilient India by promoting sustainable economic growth and self-sufficiency.
Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions, Greater India
The Union Budget 2025 further strengthens the ‘Make in India’ initiative, which is pivotal to the government’s vision of making India a global manufacturing hub. As the country aims to become a manufacturing powerhouse, the duty exemption on capital goods used in lithium-ion battery production presents significant opportunities for growth.
Furthermore, the boost for digitization in today’s Budget will act as a catalyst for power management solutions and play a key role in ensuring sustained growth, skill development, and the realization of ‘Viksit Bharat.’
With strong government policy support, effective governance and monitoring provide the necessary impetus to boost local industries. The establishment of National Centers of Excellence for training—leveraging global expertise and partnerships—will equip our youth with the skills required for ‘Make for India, Make for the World,’ paving the way for long-term manufacturing sustainability.
Madhumita Agrawal, Founder & CEO, Oben Electric
The Union Budget 2025 is well balanced, in terms of supporting India’s aspirations of emerging as a global hub for tech and innovation, while supporting MSMEs – the nation’s backbone, and creating more job opportunities for the nation’s youth. Investments in Clean Tech will certainly give a boost to the EV sector. Exemption of basic customs duty on Cobalt Powder and lithium-ion battery waste, and including 35 additional capital goods for EV manufacturing, will give a significant push to indigenous manufacturing. This will not only ensure easy availability crucial, also boosting domestic manufacturing and creating more job opportunities for the nation’s youth. At the same time, the budget also has key provisions for boosting the next wave of entrepreneurship in the nation, including the New Fund of Funds with a fresh contribution of INR 10,000 crore is a welcomed move, following the funding winter & dry spells that entrepreneurs had to endure in the previous year. Easing credit access to MSMEs is also a crucial move and will lead to better tech upgradation and more employment avenues for the nation’s youth. At Oben, we commend these key developments in the Union Budget 2025 and stay committed to helping India’s move towards sustainability and clean energy.
Shekhar Singal, Managing Director, Eastman Auto & Power Ltd.
The Union Budget 2025 significantly advances India’s renewable energy sector with the launch of the Clean Tech Mission, focusing on Solar PV, EVs, and Batteries, alongside the National Manufacturing Mission. The announcements underscore the government’s dedication to strengthening ‘Make in India’ and becoming Aatmanirbhar in generation as well as storage of clean energy. This approach aims to reduce import reliance and build a robust domestic industry.
From a Solar and Last Mile e-mobility category perspective, the budget with reduction in the BCD for cells and modules prioritizes scaling up of the domestic manufacturing capacities for key components for Solar. The addition of 35 capital goods related to Lithium batteries for EV reduces capital expenditure for setting up manufacturing plants thereby stimulating growth.
These strategic measures set India on a path to achieve its 500 GW renewable energy target by 2030, paving the way for energy independence and a cleaner more sustainable future.
Anagh Ojha, Co-founder & CTO, Urja Mobility
Budget 2025 takes a significant step toward strengthening India’s EV and energy storage ecosystem. The introduction of the Critical Mineral Mission aims to enhance domestic production, overseas acquisition, and recycling of essential minerals like lithium, cobalt, and nickel—crucial for battery manufacturing. Additionally, the government has removed customs duties on 25 critical minerals, including lithium and copper, reducing import costs for key raw materials.
This move is expected to boost local battery manufacturing, reduce reliance on imports, and make EVs more affordable. The continued focus on PLI schemes and incentives for battery storage and EV production further signals the government’s commitment to clean mobility. However, successful implementation will depend on execution speed, policy clarity, and ensuring a stable supply chain.
For startups and businesses in the EV and energy storage space, these measures present new opportunities but also demand agility in adapting to policy shifts. If complemented by financing solutions and infrastructure expansion, India can accelerate its transition to sustainable mobility. Overall, Budget 2025 lays a strong foundation for India’s energy future, but industry collaboration and effective execution will be key to unlocking its full potential.
Dev Arora, Founder & CEO, Alt Mobility
Budget 2025 is a game-changing moment for the electric vehicle (EV) sector, particularly with the introduction of BCD (Basic Customs Duty) cuts on materials required for Li-Ion batteries. This will significantly lower production costs and help accelerate the growth of a zero-emission vehicle ecosystem in India. The full exemption of customs duty on 35 capital goods for EV manufacturing, combined with the INR 10,000 crore Clean Tech Mission, is set to drive innovation and create a self-sustaining, local ecosystem for EV batteries, motors, and controllers. This will reduce our reliance on imports and make cutting-edge, sustainable technology more accessible to manufacturers, paving the way for a truly green future.
The budget also shines a spotlight on MSMEs, particularly in the auto component sector, with easier credit access and a doubled credit guarantee cover to INR 10 crore. This will empower smaller component manufacturers to scale up and contribute to India’s clean mobility transition.
At Alt, we are excited about the government’s strategic focus on clean tech and local manufacturing, which not only reduces costs but also sets India on a trajectory to become a global leader in EV and clean energy solutions, fostering long-term growth and a cleaner, greener future.
Prashant Vashishtha, Chairman and Managing Director of Sokudo Electric India
The Budget 2025-26 is a significant step toward strengthening India’s startup ecosystem and accelerating the growth of the electric vehicle industry. The government’s emphasis on clean-tech manufacturing, deep-tech funding, and expanding the Credit Guarantee Scheme is a strong signal of its commitment to fostering innovation and self-reliance.
For EV startups like Sokudo Electric, the push for domestic battery production and the development of a robust infrastructure are much-needed moves. These initiatives will not only reduce our dependence on imports but also create a more sustainable and efficient supply chain. The focus on ease of doing business, through measures like the Jan Vishwas Bill 2.0 and streamlined regulatory frameworks, will make it easier for startups to scale, attract investments, and contribute to India’s economic growth.
What’s also encouraging is the government’s proactive approach to supporting MSMEs and new-age businesses with better access to funding, tax reforms, and financial incentives. This is exactly the kind of backing that young companies need to innovate and expand.
At Sokudo Electric, we are excited about the opportunities this budget creates for the EV industry. With the right policies and a strong manufacturing ecosystem, India is well on its way to becoming a global leader in electric mobility. The future of sustainable transportation looks brighter than ever.
Samrath Singh Kochar, Founder and CEO, Trontek
The Union Budget 2025 takes a forward-looking approach, emphasizing growth, innovation, and sustainability. By prioritizing infrastructure, technology, and clean energy, the government is laying the groundwork for long-term economic resilience. Enhanced support for MSMEs and a stronger push for green initiatives reflect a commitment to fostering self-reliance and competitiveness in a rapidly evolving global landscape.
A clear focus on strengthening domestic manufacturing, promoting technological advancements, and accelerating the energy transition signals India’s intent to lead in critical sectors. The budget also highlights the importance of sustainable development, ensuring that economic progress aligns with environmental responsibility. With these strategic initiatives, India is well-positioned to drive innovation, create new opportunities, and build a more resilient future.
Anupam Kumar, Co-Founder and CEO, MiniMines Cleantech Solutions
The Union Budget 2025-26 marks a transformative step toward a cleaner, greener future, and for companies like MiniMines, it presents a wealth of opportunities. With the government’s strong push for clean energy, the demand for critical materials such as lithium-ion is set to rise.
The Finance Minister’s proposal to provide a full exemption of Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, scrap, and 12 other critical minerals is a major boost for the sector. This move will secure the availability of these essential materials for domestic manufacturing. Additionally, the customs duty reduction on lithium batteries will drive increased consumption, further benefiting the battery recycling industry. The reduction of BCD from 5 percent to 2.5 percent is expected to accelerate EV adoption, creating a ripple effect that will increase the demand for battery recycling and rare metal recovery. Furthermore, the tax exemption on cobalt powder will boost the sales and adoption of cobalt-based battery chemistries, opening new avenues for growth in energy storage and mobility.
Amit Sharma, General Partner, Cactus Partners
The establishment of a new Fund of Funds (FoF) with an additional INR 10,000 crore and an expanded scope is a welcome move. The initial INR 10,000 crore FoF, managed by SIDBI—of which Cactus Partners has also been a beneficiary—has been a major catalyst for India’s startup ecosystem, significantly contributing to its vibrancy by helping mobilize INR 91,000 crore for Indian AIFs. The exploration of a deep-tech Fund of Funds is also a positive step and will be crucial in driving cutting-edge innovation in India. Additionally, the provision of term loans of up to INR 2 crore for first-time entrepreneurs from certain sections of society, including women, will further encourage entrepreneurship. The increased credit guarantee cover, along with a reduced guarantee fee for startups and MSMEs, will enhance much-needed access to credit.
Cleantech and electronics manufacturing have been visibly prioritized in this budget. The exemption of customs duty on 12 additional critical minerals, including lithium-ion battery scrap, will support India’s recycling and minerals processing industry. Similarly, duty exemptions on incremental capital goods for EV battery and mobile phone battery manufacturing will incentivize domestic production and provide a boost to cleantech startups. The stated commitment to supporting the manufacturing of solar cells, EV batteries, and electrolyzers is another positive move. Moreover, there appears to be a clear intent to reduce regulatory compliance for businesses, including startups. Overall, this budget is a step in the right direction toward strengthening the startup ecosystem.
Nishant Sood, Managing Director, Candi Solar
The announcement of the National Manufacturing Mission to support clean tech, particularly in EV batteries and solar panels, is a significant step towards strengthening India’s position as a leader in the renewable energy sector. This forward-thinking initiative will not only foster domestic production but also drive innovation and efficiency, further accelerating our transition to clean energy. We are especially encouraged by the government’s focus on scaling up battery storage, which is a critical enabler for solar energy adoption. While the existing production-linked incentive schemes are a positive move, additional duty-based support for storage technologies will be key to unlocking the full potential of solar in India. This Budget signals a clear commitment to a sustainable, self-reliant energy future, and we are excited to be a part of this transformation.
Govind Sankaranarayanan, Co-founder & COO, Ecofy
The announcement of the National Manufacturing Mission to support clean tech manufacturing is a significant step toward accelerating India’s green transition. By boosting domestic production of EV batteries and solar panels, this initiative will reduce reliance on imports, while also driving innovation and create sustainable jobs. At Ecofy, we are committed to enabling a greener future, and this move aligns perfectly with our mission to support clean energy solutions that empower businesses and individuals. We applaud the government’s vision for fostering a self-reliant and sustainable clean tech ecosystem in India.
Dhananjaya Bhardwaj, CEO And Founder, ParkMate
The Budget 2025-26 is a big win for startups and a step in the right direction for businesses striving to innovate and scale in India. As a young company in the mobility-tech space, we at ParkMate are particularly encouraged by the government’s commitment to fostering entrepreneurship, improving ease of doing business, and strengthening digital infrastructure. The introduction of the Jan Vishwas Bill 2.0, faster approvals for mergers, and an investment-friendly index set to launch in 2025 all signal a future where startups can grow with fewer regulatory roadblocks and more institutional support.
For companies like ours, which are working to solve real-world mobility challenges, the government’s focus on urban infrastructure and smart city development is particularly exciting. The INR 1 lakh crore Urban Challenge Fund and INR 1.5 lakh crore interest-free loans for capital expenditure are massive moves that will lead to better-planned cities, improved traffic management, and increased adoption of tech-driven mobility solutions.
Beyond infrastructure, the expansion of funding options for startups—through a higher credit guarantee cap and deep-tech investment—shows a clear push toward innovation. This budget has set the stage for emerging companies to access capital more efficiently, reduce dependency on traditional funding sources, and focus on scaling their solutions. The government’s trust-based approach, where scrutiny comes after trust, will also go a long way in easing compliance and creating a more startup-friendly environment.
At ParkMate, we strongly believe that technology can reshape urban mobility, and with the right policies, we can build smarter, more efficient cities. This budget lays the groundwork for startups like ours to collaborate with the government, leverage digital infrastructure, and be a part of India’s growth story. We’re excited about the road ahead and look forward to driving meaningful change in the way people move and park in our cities.
Rashi Agarwal, Co-founder & Chief Business Officer, Zypp Electric
The Union Budget 2025 reaffirms India’s commitment to fostering entrepreneurship and empowering the gig economy. The government’s decision to establish a new ‘Fund of Funds for Startups’ with an additional INR 10,000 crore infusion will provide a significant boost to innovation and job creation. This initiative, coupled with the dedicated support for 5 lakh women, SC, and ST first-time entrepreneurs, will drive inclusive growth and encourage diverse participation in the startup ecosystem.
Furthermore, introducing identity cards and healthcare coverage for gig workers under PM-Jan Aarogya Yojana is a landmark move towards recognizing and securing the livelihoods of millions in the gig economy. These measures are a game-changer at Zypp Electric, where our fleet is powered by thousands of gig workers enabling sustainable last-mile deliveries. Access to social security and financial support will empower our rider partners, enhance workforce stability, and accelerate the adoption of green mobility solutions across India. We welcome these forward-thinking initiatives, which will not only strengthen India’s entrepreneurial landscape but also ensure social security for the workforce driving the nation’s digital and mobility revolution.
Hyder Ali Khan, CEO & Director, Godawari Electric Motors
The Union Budget’s focus on cleantech and self-reliance is a major boost for India’s EV industry, directly benefiting Godawari Electric Motors. The National Manufacturing Mission supports local EV battery and solar panel production, reducing import dependency and enhancing cost efficiency.
The establishment of five National Centres of Excellence for Skilling will strengthen the EV workforce, while the exemption of Basic Customs Duty on critical minerals like cobalt and lithium-ion batteries ensures a steady supply of key raw materials for domestic manufacturing.
Additionally, the increased tax relief of up to INR 12 lakh will enhance consumer consumption, accelerating EV adoption and reinforcing sustainable mobility adoption across segments.
Prashant Vashishtha, Chairman and Managing Director of Sokudo Electric India
The Budget 2025-26 is a significant step toward strengthening India’s startup ecosystem and accelerating the growth of the electric vehicle industry. The government’s emphasis on clean-tech manufacturing, deep-tech funding, and expanding the Credit Guarantee Scheme is a strong signal of its commitment to fostering innovation and self-reliance.
For EV startups like Sokudo Electric, the push for domestic battery production and the development of a robust infrastructure are much-needed moves. These initiatives will not only reduce our dependence on imports but also create a more sustainable and efficient supply chain. The focus on ease of doing business, through measures like the Jan Vishwas Bill 2.0 and streamlined regulatory frameworks, will make it easier for startups to scale, attract investments, and contribute to India’s economic growth.
What’s also encouraging is the government’s proactive approach to supporting MSMEs and new-age businesses with better access to funding, tax reforms, and financial incentives. This is exactly the kind of backing that young companies need to innovate and expand.
At Sokudo Electric, we are excited about the opportunities this budget creates for the EV industry. With the right policies and a strong manufacturing ecosystem, India is well on its way to becoming a global leader in electric mobility. The future of sustainable transportation looks brighter than ever.
Aditya Singh, CEO, ZEVO
We commend the government’s proactive steps in the 2025 Union Budget to support the electric vehicle ecosystem. The exemption of customs duties on the manufacturing of batteries for electric vehicles marks a significant stride towards reducing production costs. These measures are a crucial step towards removing the hurdle of higher upfront investment costs for EVs. It will not only make EVs more affordable but also foster domestic battery manufacturing, strengthening the entire EV supply chain.
While we eagerly await expanded incentives for charging infrastructure, these provisions are a clear indication of the government’s commitment to sustainable transportation. We are confident that such initiatives will accelerate EV adoption and help India achieve its environmental goals more swiftly.
Harinder Singh, CEO & M.D, Yokohama India
The Union Budget 2025 underscores India’s steadfast commitment to enhancing its manufacturing ecosystem, fostering sustainability, and driving self-reliance. The introduction of the National Manufacturing Mission and the push for clean-tech manufacturing are key enablers that will accelerate the country’s transition to green mobility. By prioritizing domestic production of EV batteries and solar panels, these measures are set to positively impact a wide array of sectors, including the tyre industry, which is essential to the electric vehicle revolution.
At Yokohama India, we are not only supporting the ‘Make in India’ initiative but actively advancing it. Our cutting-edge manufacturing facilities, like the latest addition of the Vizag plant and the existing one at Bahadurgarh, are designed to produce premium tyres tailored specifically to Indian road conditions, while also aligning with the government’s priority towards clean-production processes with ‘zero’ pollution levels. Additionally, we remain committed to generating local employment and upskilling the workforce. The government’s initiative to establish five National Centres of Excellence for skilling is an important step in closing the skills gap in advanced manufacturing and sustainable technologies, ensuring that India’s workforce is ready for the future.
Infrastructure development remains a cornerstone of India’s industrial growth. We welcome the government’s focus on Public-Private Partnerships (PPP) and the allocation of ₹1.5 lakh crore in interest-free loans for capital expenditure. A robust logistics and transportation network will not only enhance manufacturing efficiency but also help reduce costs and increase supply chain resilience, benefiting industries such as tyres.
Additionally, the tax relief for the middle class will drive higher disposable incomes, leading to greater consumption across sectors, including automobiles. As vehicle demand grows, this will have a positive ripple effect on the tyre industry, further reinforcing the sector’s growth trajectory.
While these announcements chart a promising course for the future, the industry continues to face challenges, particularly with high import duties on essential raw materials like natural rubber. The Union Budget makes significant strides toward strengthening India’s manufacturing base, and further rationalization of duties and enhanced policy support for raw material availability will help build a more robust and sustainable industry. These positive steps from the government reflect a clear vision, and we are confident that with continued focus on sustainability, skill development, and industry-friendly reforms, India’s position as a global automotive leader will only strengthen.
Ashish Gupta, Brand Director, Volkswagen India
Today’s Union Budget 2025 presents a forward-thinking roadmap for strengthening India’s manufacturing ecosystem, with a clear emphasis on clean technology, skill development, and infrastructure growth. By prioritizing these areas, along with manufacturing, India is advancing toward a circular economy—where investments, innovation, and sustainable practices drive long-term growth. This vision is further reinforced with significant initiatives for the automotive industry, ensuring a more self-reliant and innovative future.
The exemption of Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, lead, zinc, and other critical minerals will strengthen India’s battery ecosystem. While 35 additional capital goods added to the exemption list for EV battery manufacturing – will boost domestic production and reduce import dependency. Establishment of five National Centres of Excellence will upskill talent for future-ready automotive innovation and is a crucial step in shaping India’s clean tech ecosystem.
I believe, Infrastructure growth through Public-private partnerships and capital expenditure incentives – will pave the way for India to become a globally competitive manufacturing hub. Even, tax exemptions for individuals earning up to INR 12 lakh annually – will increase disposable income, thereby enhancing purchasing power and drive greater demand in the auto sector as well. At Volkswagen India, we are optimistic that these measures will further reinforce India’s position as an automotive manufacturing hub.
Baroruchi Mishra, Partner and Group CEO, Nauvata Energy Transition (NET) Enterprise
The budget could be described as reformist, but perhaps not bold enough. Some key enablers of growth in the budget include:
More disposable income for the middle class: This translates to a boost in consumption and the production of higher-value goods and services, which helps maintain the growth story.
Reforms in urban development: These will aid in planned growth, but we need clearer direction in this area. We’ve largely been moving forward without a defined strategy in this space.
A focus on mining for rare earth metals: This will help reduce dependency on China, strengthening domestic capabilities.
Reclassification of MSMEs to scale up manufacturing: This initiative supports both employment growth and productivity enhancement. However, delivery of this intent will need to be closely monitored, as bureaucracy continues to slow progress in this sector.
Increased focus on R&D: The INR 20,000 crore allocation for private-sector-led research is much-needed. While we may still be catching up with the West and China, this marks a recognition of its importance.
Encouraging innovation from early education: Initiatives like Tinkering Labs in government schools are a step in the right direction. This is similar to efforts seen in Japan and China, but we will need to ensure these are implemented as originally intended.
Renewables push: This is promising, though incremental. Could we have been bolder, for example, by making 2G ethanol production more economically viable with higher prices? This could help mitigate the current trend of diverting sugar production for ethanol, while also fostering a new manufacturing sector for biofuels. Brazil could serve as a model here.
Finally, with ‘Deepseek’ and the growing role of AI in driving economic activity, the allocation of INR 500 crore for three Centres of Excellence for AI is a step in the right direction, but it leaves much to be desired.
Overall, the budget has its heart in the right place, but a broader and bolder approach would have been more impactful.
Abhijeet Sinha, Project Director-National Highways for Electric Vehicles (NHEV)
Budget 2025-26 introduced tax incentives, including full exemption from Basic Customs Duty (BCD) on key materials like cobalt powder, lithium-ion battery waste and scrap, lead, zinc, and twelve other critical minerals. This decrease in operational expenses will stimulate the expansion of India’s EV battery industry and enhance domestic production capabilities. It’s expected to result in cheaper EV batteries, making electric vehicles more affordable.
Further 35 additional items used in EV battery production and 28 items for mobile phone battery manufacturing have been made duty-free. The reduction in custom & duty complements the existing PLI schemes and will encourage backward integration, enabling Indian manufacturers to scale up operations efficiently.
However, missing Climate Financing outlays and a clear roadmap for expanding charging infrastructure limits the immediate impact on adoption. Funding to finance 25% of the cost of bankable projects upto ₹10 K crore for 2025-26 with ₹1.5 lakh crore additional interest-free loans and Urban Challenge Fund have the potential to support e-mobility initiatives, but a focused green transition fund would have boosted electric mobility differently.
MODINOMICS effects seems working as withing a 3 year timeframe from its launch PM Gati Shakti National Masterplan (2021) unfolded dynamic wings in Budget2025 with potential DATA offerings to private sector to integrate and develop top 50 tourist destinations with multimodal logistic and connectivity in partnership with state govt, hotels, mobility and logistic players.
Electric Mobility need to achieve faster adoption that warrants immediate action is needed in the form of stronger incentives for fleet electrification and a rapid expansion of charging networks. The industry expected beyond PM E-Drive from budget to a proactive measure to position India as a competitive global player in the EV market. Recent guidelines on charging infrastructure and battery swapping could have taken mission mode with increase investor confidence and accelerate the transition to EVs.
Vikram V, Vice President & Co-Group Head, ICRA Limited
The Union Budget continued its focus on clean energy with measures such as nuclear energy mission with 100 GW capacity target by 2047, increased allocation to the PM Surya Ghar Muft Bijli Yojana and national manufacturing mission to promote the manufacturing of solar PV cells, wind turbines, grid scale batteries and electrolysers. The increased allocation to rooftop solar scheme will aid the renewable capacity addition in the country. Moreover, incentive of additional borrowing of 0.5% of GSDP to states for distribution sector reforms is a positive for the sector, though Implementation remains key.
Utkarsh Singh, Co-Founder & CEO, BatX Energies
We applaud the Union Budget 2025 for its transformative policies to reduce import dependency and foster Aatmanirbhar Bharat through the domestic recycling of lithium-ion battery scrap. By enabling the import and low-cost processing of lithium-ion battery scrap, the government has paved the way for India to become self-reliant in critical materials production. This move will not only bolster the EV and renewable energy sectors but also position India as a global leader in the circular economy.
The announcement aligns perfectly with the ‘Make in India’ initiative and the recently approved Critical Mineral Mission, reinforcing the nation’s commitment to securing a sustainable and resilient supply chain for critical materials. At BatX Energies, we remain dedicated to building a sustainable future by extracting valuable resources from battery waste and driving the vision of Aatmanirbhar Bharat forward.
Sumedh Battewar, Co-founder and CBO of EMotorad
The government’s move to exempt custom duties for lithium battery production will help strengthen local EV manufacturing and largely reduce import dependence. We have witnessed a high demand for skilled talent making way for a wave of opportunities for youth to apply their expertise in the EV sector.
However, there is a knowledge transfer gap that needs to be addressed through focused training, education, and awareness programs. The ultimate goal is to generate employment, drive financial empowerment, and alleviate the economic burden on households. These reforms lay the groundwork for a more inclusive and sustainable future for India’s EV ecosystem.
H S Bhatia, Managing Director, Daewoo India
The budget announcements are a significant boost to India’s growth story. The tax bonanza for the middle class, with zero income tax liability for those with annual income up to Rs 12 lakh, will increase disposable income and drive consumption.
The exemption of lithium batteries from the Basic Custom Duty will give a fillip to the electric vehicle industry and encourage sustainable development.
The government’s emphasis on education and innovation, with initiatives like 50,000 Atal Tinkering Labs and IIT expansion, will drive India’s innovation boom and create a skilled workforce. These initiatives will have a positive impact on the economy and society, and we look forward to contributing to this growth story.
Bharat Gite, MD & CEO, Taural India
The Union Budget 2025 sets a decisive course for India’s manufacturing sector by strengthening MSMEs, fostering domestic production, and enhancing global trade competitiveness. The enhanced credit guarantee scheme and financing for machinery upgrades will accelerate MSME expansion, fueling industrial growth, particularly in Tier II and III regions.
The National Manufacturing Mission, coupled with a dedicated committee to review and reform business regulations, will improve the ease of doing business—streamlining processes, reducing bottlenecks, and attracting investments. Additionally, digital public infrastructure for international trade will unlock financing solutions, giving Tier II and III industries better access to global markets.
A strong push for innovation through private-sector-driven research and 10,000 PM Research Fellowships will strengthen India’s R&D ecosystem, fostering high-value manufacturing advancements. By equipping researchers with resources to develop globally competitive technologies, these initiatives will help India move up the value chain—ensuring our industries are not just production hubs but innovation powerhouses. Expanding IIT capacity by 6,500 seats will further drive engineering excellence and future-ready talent.
By prioritizing scale, efficiency, and innovation, this budget paves the way for India to emerge as a global manufacturing leader—an ambition deeply aligned with Taural India’s vision.
Dinesh Arjun, CEO Cofounder, Raptee.HV
Innovation and technology are the cornerstones of every developed nation, and India’s vision for Viksit Bharat rightly prioritizes these pillars. The Finance Minister’s focus on nurturing and investing in innovation is a commendable step toward accelerating new technologies that will shape our future. The allocation of a Deep Tech Fund will further strengthen India’s industrial ecosystem, fostering a globally competitive, tech-driven economy.
A crucial boost to the EV industry comes with the exemption of Li-Ion batteries and other capital goods, which will significantly reduce battery costs and encourage further investment in domestic battery manufacturing. Given that batteries make up 30-40 percent of an EV’s cost, this move will make EVs more affordable and accessible to consumers, driving mass adoption across two-wheelers, three-wheelers, and four-wheelers alike. By addressing a fundamental cost barrier, this initiative lays a strong foundation for the future of electric mobility in India. We are confident that these strategic measures will have a lasting positive impact on the EV ecosystem in the months to come.
Uday Narang, Founder and Chairman, Omega Seiki Pvt. Ltd.
The Union Budget 2025-26 has taken a commendable step towards strengthening India’s manufacturing ecosystem by removing the Basic Customs Duty (BCD) on critical materials such as cobalt, lithium-ion battery scrap, and lead. These materials are essential for the production of lithium batteries, which are the backbone of the electric vehicle and clean energy industries. By eliminating these duties, the government is not only reducing the cost of production for manufacturers but also accelerating the transition towards more affordable and sustainable technologies.
This bold move will help make electric vehicles and electronics more affordable for consumers while fostering the growth of domestic industries. With a focus on local manufacturing, the government is laying the foundation for India to become a global leader in battery production and renewable energy technologies, while significantly reducing dependence on imports. At Omega Seiki, we are excited about the future prospects of this policy and its potential to drive innovation and sustainability in the sector.
The announcement of three Centres of Excellence in Artificial Intelligence with a INR 500 crore allocation in the Union Budget 2025-26 is a remarkable initiative that will significantly boost India’s technological and educational landscape. This focus on AI research and its application in education will empower the next generation with cutting-edge skills, preparing them for the challenges of tomorrow’s workforce. At Omega Seiki, we strongly believe that this forward-thinking investment in skill development will drive innovation across sectors, particularly in industries like EVs, clean energy, and electronics, paving the way for a digitally proficient and globally competitive India.
Kunal Arya, Co-founder & Managing Director, ZELIO E Mobility Ltd.
As India takes another step toward a sustainable future with the 2025-26 Union Budget, the Finance Minister’s focus on promoting clean-tech manufacturing and easing the cost pressures on electric vehicle (EV) production is a commendable move. Exempting critical minerals, such as lithium and lead, from customs duty will provide much-needed relief to the EV industry, supporting growth and reducing import dependency. Additionally, the inclusion of 35 new capital equipment items for lithium-ion battery manufacturing in the exempted list is a strategic move to strengthen domestic capabilities. The commitment to developing a comprehensive ecosystem for solar photovoltaic cells, EV batteries, and other clean technologies signals long-term growth potential. However, despite these positive initiatives, the absence of concrete measures to support long-term subsidies for EVs and a reduction in GST on spare parts remains a missed opportunity for accelerating mass adoption and reducing production costs. These steps are vital for achieving the ambitious growth targets for India’s electric mobility sector.
SK Gupta, Director and CFO, AMPIN Energy Transition
Budget ‘2025’ is a welcome growth oriented budget aiming to provide transformative reforms to critical sectors of both fiscal and core development of the economy. ‘National manufacturing mission’ with continued focus on ‘Cleantech’ will further help diversify manufacturing across states, create jobs and make a larger contribution to national GDP in coming times. Relief in personal taxation limits is again a welcome change and is expected to act as a catalyst- promote both savings and consumption in the economy, in coming times.
Niranjan Nayak, MD, Delta Electronics India
The Union Budget 2025-26 lays down a strong foundation for India to transition towards becoming a sustainable, technology-driven, and self-reliant economy. The emphasis of the government on green energy, EV infrastructure, AI-led innovation, and digital transformation closely resonates with Delta’s aim to deliver energy-efficient, smart solutions that power the future.
This would place India on further accelerated net-zero emission paths and spur technological leadership for the country simultaneously. Higher penetration of clean mobility will be facilitated through investments in modernising smart grids and EV charging infrastructure.
Delta is placed to help since it leads the market for an EV charging and power solution. The PLI incentives for R&D and manufacturing under the scheme will further cement India’s position as a world manufacturing hub.
Delta continues to utilize its prowess in industrial automation, power electronics, and smart infrastructure for contribution to the development of India. We are hopeful that together with industry stakeholders and policymakers, these budgetary allocations will take on a shape where the vision is turned into an actual path leading to a sustainable, digitally empowered, and future-ready India.
Maxson Lewis, Founder and CEO, Magenta Mobility
The Union Budget 2025 takes a big leap toward strengthening India’s economy while addressing the real challenges faced by SMEs and gig workers. MSMEs have long been the backbone of our EV industry, and this budget recognizes their role by offering targeted incentives, skill development programs, and infrastructure support—giving them the tools they need to scale and innovate.
At the same time, the expansion of the E-Shram scheme is a much-needed win for gig workers, ensuring they have access to social security, fair wages, and better upskilling opportunities. In today’s digital-driven world, these measures go a long way in creating a more inclusive workforce.
What’s particularly exciting is the boost for manufacturing—especially in electronics and EV battery production—along with fresh investment incentives for startups. By focusing on clean energy, self-reliance, and innovation, this budget isn’t just about numbers. It’s about empowering businesses, workers, and entrepreneurs to build a more sustainable and globally competitive India.