Finance Minister Nirmala Sitharaman announces the Union Budget 2026-27, setting the tone for economic policy and public spending in the coming year. The industry welcomes the significant push for energy storage and battery manufacturing, including the INR 40,000 crore ECMS enhancement, explicit BCD exemptions for BESS, dedicated Rare Earth Corridors across Odisha, Kerala, Andhra Pradesh and Tamil Nadu, ISM 2.0 for semiconductor manufacturing, three Chemical Parks for battery chemicals, and deployment of 4,000 electric buses in the Northeast. However, some experts have raised concerns over critical gaps, including the absence of allocations for lithium and nickel refining under the recently announced scheme, missing incentives for the recycling industry, and the lack of GST reduction on water electrolysers from 18% to 5%.
Proposal to raise public capex to ₹12.2 lakh crore strengthens foundation for long‑term growth
Shailesh Chandra, MD and CEO, Tata Motors Passenger Vehicles
The Union Budget 2026 is an inclusive, growth‑oriented and forward‑looking roadmap designed to accelerate sustainable economic expansion with fiscal prudence by scaling up manufacturing across strategic sectors, renewing focus on the services economy, and enhancing export competitiveness in a challenging global environment. The proposal to raise public capex to ₹12.2 lakh crore strengthens the foundation for long‑term growth and the focus on enhancing competitiveness, long‑term resilience and broad‑based development align strongly with the nation’s evolving priorities. Targeted initiatives for data centres, semiconductors, rare earths and electronic components will reduce critical import dependencies and position India as a global high‑tech manufacturing hub. The higher Auto PLI allocation for FY27, customs duty exemptions on capital goods for lithium‑ion cell manufacturing, and increased outlay under the PM e‑Drive scheme reflect the government’s continued commitment to catalyzing the EV ecosystem. Overall, the Budget builds on the reform momentum of recent years, reinforcing India’s resilience and advancing the nation’s journey toward the Viksit Bharat vision.
Union Budget 2026–27 sets clear direction on India’s long-term economic priorities
Piyush Arora, Managing Director & CEO, Škoda Auto Volkswagen India
We welcome the Union Budget 2026–27 for the clear direction it sets on India’s long-term economic priorities as the country progresses towards the Viksit Bharat 2047 vision. It sends a strong message of policy stability, which is essential for sustained manufacturing investments.
The continued emphasis on manufacturing competitiveness and trade facilitation, including progress on the India–EU FTA, strengthens India’s position in global supply chains and reinforces its role as a key automotive manufacturing and export base. The focus on SME growth and the revival of legacy industrial clusters will further enhance the resilience and depth of India’s industrial and supplier ecosystem.
At Škoda Auto Volkswagen India Private Limited, this aligns well with our ‘Make in India, for India and the world’ commitment as we advance our sustainable mobility roadmap and continue to deepen localisation and skilling across our ecosystem.
Budget sends a strong and progressive signal for India’s industrial future
Harinder Singh, Managing Director & CEO, Yokohama India Pvt. Ltd
The Union Budget’s continued emphasis on manufacturing depth, infrastructure expansion, critical mineral ecosystems and clean energy value chains sends a strong and progressive signal for India’s industrial future. Enhanced support for electronic components manufacturing, battery storage, lithium-ion cells and critical minerals creates long-term policy visibility for EV platform localisation, battery assembly and advanced power electronics manufacturing, thereby strengthening investment confidence across emerging mobility ecosystems. ”
For the tyre industry and the broader automotive sector, sustained capital expenditure of ₹12.2 lakh crore, expansion of highways, freight corridors, ports and multimodal logistics networks will significantly improve supply chain resilience, logistics efficiency and last-mile connectivity. Improved infrastructure access across Tier-II and Tier-III markets further enhances market reach and demand potential. ”
Additionally, customs duty rationalisation and exemptions on select capital goods and advanced components help improve cost competitiveness by lowering initial capex and operational costs for high-technology manufacturing investments in India. ”
At Yokohama India, where we continue to expand our domestic production footprint with a strong focus on localisation, sustainability and high value-added products, this policy direction reinforces confidence to accelerate investments in capacity, technology and next-generation manufacturing aligned with India’s long-term growth trajectory.
Budget sets out a clear and forward-looking path for sustained economic growth
Gwanggu Lee, MD & CEO, Kia India
The Union Budget 2026–27 sets out a clear and forward-looking path for sustained economic growth, with a strong focus on manufacturing, infrastructure and fiscal discipline. Continued investments in roads, railways, freight corridors and regional connectivity, along with the development of new economic regions and high-speed corridors, will open-up fresh opportunities and support balanced growth across the country.
The emphasis on advanced manufacturing, electronics and battery production, rare earth corridors and MSME empowerment strengthens India’s journey towards becoming a competitive global manufacturing hub under the vision of Atmanirbhar Bharat. Together, these measures reinforce consumer confidence and accelerate the transition towards technology-led and sustainable mobility. As India progresses towards a Viksit Bharat, Kia India looks forward to contributing meaningfully to this transformation through future-ready mobility solutions.
India Semiconductor Mission 2.0 and the ECMS will help build domestic capabilities in semiconductors
Madhumita Agrawal, Founder & CEO, Oben Electric
The Union Budget’s focus on expanding the Rare Earth Permanent Magnet Scheme and building dedicated rare earth corridors is a positive step towards reducing import dependence for critical materials used in EV manufacturing. Rare earth magnets, which are key components in electric motors, benefit directly from this initiative, and strengthening capabilities across mining, processing and advanced manufacturing will create a more reliable domestic supply base.
The India Semiconductor Mission 2.0 and the Electronics Components Manufacturing Scheme will help build domestic capabilities in semiconductors and other electronic components, strengthening the supply chain for critical EV systems and reducing dependence on imports
As electric motorcycle manufacturing scales in India, such measures are particularly relevant for manufacturers with end-to-end, in-house development and manufacturing capabilities, supporting localisation and long-term supply stability.
Reducing customs duty on capital goods for lithium-ion batteries will help lower costs
Kunal Arya, Co-founder & MD at Zelio E Mobility
India’s electric two-wheeler segment has gained strong momentum, and the Union Budget 2026–27 takes a step toward scaling it into a full industrial ecosystem. Focusing on rare earth magnets and dedicated corridors in mineral-rich states is crucial to secure the materials that power electric drivetrains. Reducing customs duty on capital goods for lithium-ion batteries will help lower costs and support local manufacturing. India Semiconductor Mission 2.0 and the enhanced Electronics Component Manufacturing Scheme will strengthen supply chains, promote full-stack Indian IP, and accelerate battery and component localisation. This is pleasing to see how the government focuses on MSMEs—through credit guarantee support of ₹10,000-crore SME Growth Fund, it will further empower companies like ours to expand capacity, innovate faster, and compete globally. For Zelio, these measures provide a clear and stable pathway to scale Make in India electric two-wheelers that are affordable, reliable, and designed for mass adoption across Tier II, Tier III, and emerging markets. As the ecosystem matures, further momentum can be unlocked through targeted PLI support for battery cells and motor controllers, along with rationalisation of GST on electric two-wheelers to enhance affordability and widen consumer access.
A decisive ‘Execution Budget’ that identifies storage and finance as the twin pillars of energy transition
Sanjeev Aggarwal, Founder and Executive Chairman, Hexa Climate.
Budget 2026 is a decisive ‘Execution Budget’ that correctly identifies storage and finance as the twin pillars of our energy transition. The extension of customs duty exemption for Battery Energy Storage Systems (BESS) manufacturing is a game-changer; it signals that the government views storage not as a luxury but as essential grid infrastructure.
Furthermore, the historic capital expenditure target of ₹12.2 lakh crore, combined with the restructuring of PFC and REC to improve efficiency, provides the financial backbone we need to scale. By lowering input costs for solar glass and securing the supply chain for critical minerals, this budget gives the private sector the confidence to move from planning to aggressive deployment.
Budget reiterates the Government’s continued focus on energy transition
Surendra K Gupta, Executive Director and CFO, AMPIN Energy Transition
The Union Budget 2026–27 reiterates the Government’s continued focus on energy transition, with specific emphasis on renewable energy (RE) and allied sectors. While certain positive measures have been announced, this budget falls short of fully addressing key expectations of the renewable energy industry.
Key positive announcements for the RE sector include:
Customs Duty Rationalisation
Reduction of Basic Customs Duty (BCD) from 7.5% to NIL on Sodium Antimonate used in the manufacture of solar glass.
NIL BCD on specified capital goods used for manufacturing lithium-ion cells for Battery Energy Storage Systems (BESS).
Carbon Capture, Utilisation and Storage (CCUS)
An outlay of ₹20,000 crore over the next five years proposed for CCUS, signalling intent to support decarbonisation beyond conventional renewables.
Energy Sector Financing
Proposed restructuring of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).
Given their sectoral focus, this is expected to improve availability of long-term financing for power and RE projects at competitive rates, subject to further clarity on the restructuring framework.
Industry Expectations and Outstanding Issues
While the above measures are encouraging, the industry believes that certain critical issues still need to be addressed through suitable amendments in the final budgetary provisions to accelerate renewable energy deployment in the country. We request the government to consider it positively.
- Clarity on delays in signing of PPAs and PSAs, particularly for centrally bid and state-level projects. The uncertainty is affecting investors and lender’s sentiments. We request the government to specifically address this.
- Introduction of a dedicated PLI scheme for BESS component manufacturing to strengthen domestic supply chains.
- Extension of ALMM applicability to solar cells, we request this to be extended for a further period of 2 years till March 2028, considering the current mismatch between the cell demand and its domestic availability.
- Extension of the concessional 15% corporate tax rate for new renewable energy manufacturing entities for a minimum of five years.
- Reduction in GST rates on BESS and on corporate guarantees from 18% to NIL, to help improve project viability.
Comprehensive approach to boost energy storage and battery manufacturing
Debmalya Sen, President, India Energy Storage Alliance (IESA)
We welcome the government’s comprehensive approach to boost energy storage and battery manufacturing. To ensure effective implementation, IESA recommends issuing detailed operational guidelines for the Chemical Parks within 90 days, specifying land allocation, infrastructure timelines, and incentive structures for battery chemical manufacturers. We urge the government to create a dedicated BESS category within the Infrastructure Risk Guarantee Fund, with sector-specific risk-assessment parameters.
IESA has also noted that the ₹600 crore earmarked for the National Green Hydrogen Mission, triple the revised budget estimate for 2025-26, indicates an expected extension of the PLI electrolyser manufacturing deadline, while operational support mechanisms and sector-specific skilling initiatives remain inadequately addressed.
Need targeted incentives for brownfield expansion of existing facilities
Vinayak Walimbe, Managing Director, Customized Energy Solutions
While the BCD exemption on capital goods for ACC manufacturing equipment is a positive step, it falls short of addressing the complete value chain. This exemption must be extended to ACC component manufacturing equipment to fully strengthen domestic capabilities. We need targeted incentives for brownfield expansion of existing facilities and dedicated budgetary support for ACC component manufacturing, which is a critical policy gap that continues to hinder India’s battery ecosystem development.
Union Budget 2026 as a positive step for India-based renewable energy companies
Dr. Avishek Kumar, Founder, Sunkonnect and Global Climate Tech Entrepreneur
We welcome the Union Budget 2026 as a positive step for India-based renewable energy companies. The record ₹12.21 lakh crore capital expenditure outlay and 29% increase for PM Surya Ghar create good visibility for solar investments and domestic manufacturing scale-up. The customs duty rationalisation to 20% on solar cells and modules, along with BCD exemption on sodium antimonate for solar glass, will support local production capabilities. However, while the reduction in BCD will help manage local production, it may not significantly reduce costs; further measures will be needed to improve affordability.
Strong policy push for India’s battery energy storage and domestic manufacturing ambitions
Gaurav Aggarwal, Co-Founder, GoodEnough Energy
Union Budget 2026 delivers a strong policy push for India’s battery energy storage and domestic manufacturing ambitions. This Budget positions manufacturing at the heart of India’s energy transition and aligns directly with our strategic roadmap to accelerate affordable, reliable, and sustainable energy solutions across India. To maximise these opportunities, we recommend prioritising BESS integration mandates in renewable energy projects and streamlining approval processes for grid-scale storage deployments, as we remain optimistic about the country’s trajectory toward a resilient, decarbonised energy future.
Critical role of battery recycling in building a circular economy
Akhilesh Bagaria, Co-Founder, NavPrakriti
We welcome the full customs duty exemption on waste and scrap of lithium-ion batteries, which addresses critical challenges around feedstock availability. As India positions itself as a hub for lithium-ion cell manufacturing, a robust recycling ecosystem becomes essential for long-term mineral security and circularity in the battery supply chain. However, rationalising GST rates on waste recycling operations remains critical to improving economics and accelerating the transition toward a truly circular and self-reliant battery ecosystem that strengthens the Make in India agenda.
Opportunities to electrify logistics fleets, reduce emissions, and enhance operational efficiency
Hari Krishna, Founder & CEO, Green Drive Mobility
India’s shift towards India’s push for electric mobility, with the government focusing on electric mobility with a specific focus on public transportation and sustainable last-mile delivery. The PM-eBus Sewa scheme will deploy 4,000 new electric buses, complemented by ₹2,000 crore under the PM E-DRIVE scheme for pan-India EV charging infrastructure, accelerating clean transport adoption. For last-mile delivery, this opens opportunities to electrify logistics fleets, reduce emissions, and enhance operational efficiency. At Green Drive, we see this industry’s expectations for 38,000 e-buses by 2029; the government’s continued policy support provides the clarity and stability needed to drive India’s green mobility transition.
Budget sets the stage to achieve energy security, climate goals, and a future-ready, low-carbon economy
Praveen Kakulte, Founder and CEO of POWERCON Group
The Union Budget 2026–27 sets the stage for India to achieve energy security, climate goals, and a future-ready, low-carbon economy. With a ₹20,000 crore allocation for Carbon Capture and Storage technologies, the government signals strong financial and policy support to reduce greenhouse gas emissions, particularly carbon dioxide from coal-based power, transport, and industry. The focus on scaling renewables i.e. wind, solar, and battery technologies alongside energy storage systems aims to address the current gap between installed power capacity and actual energy generation, strengthening reliance on non-fossil fuel sources. While conventional fuel sources continue to stay, these measures pave the way for a cleaner, more reliable energy mix.
‘Inclusivity’ through MSMEs and women entrepreneurs from the tier-2 & tier-3 sector, this budget motivates the Power sector while creating avenues to lit every Indian home with clean, reliable and affordable energy!
Deployment of 4,000 electric buses across the North-East marks an important acceleration in public transport electrification
Devndra Chawla, MD & CEO, GreenCell Mobility
The Union Budget 2026–27 clearly signals that electric mobility and sustainable transport are no longer peripheral to India’s growth agenda, but central to it. The planned deployment of 4,000 electric buses across the North-East marks an important acceleration in public transport electrification, particularly for cities and tourism-intensive regions that are grappling with congestion, pollution and rising mobility demand. Large-scale adoption in public fleets is often the inflection point for electric mobility, and this push strengthens confidence across the ecosystem while also supporting cleaner, more accessible travel for residents and visitors alike.
The emphasis on new national waterways, dedicated freight corridors and high-speed rail connectivity reflects a broader shift towards cleaner, more efficient movement of people and goods. As highlighted in the Budget, these investments are also closely linked to boosting tourism by improving connectivity to pilgrimage circuits, heritage destinations and emerging travel hubs. Reduced dependence on high-emission road transport, combined with stronger last-mile connectivity, is essential for creating integrated and sustainable mobility networks that support both economic activity and tourism-led growth.
When viewed alongside initiatives such as City Economic Regions and the Seaplane VGF Scheme, the Budget points to a more balanced transport strategy that links urban centres, emerging regions and tourist destinations. These measures enhance regional accessibility while creating new opportunities for multimodal, low-carbon transport solutions.
Equally relevant for the sector is the Infrastructure Risk Guarantee Fund, which can help unlock private capital for commercial transport and EV infrastructure. Access to risk-mitigated financing is critical for scaling electric fleets and charging networks at pace, especially across intercity routes and high-footfall travel corridors.
For GreenCell Mobility, these measures create a supportive environment to expand electric bus operations, integrate smart mobility solutions and partner with cities and states on cleaner mass transit systems. Overall, this Budget reinforces a long-term vision for low-carbon, inclusive and future-ready transportation, where sustainable mobility becomes a key enabler of economic growth, tourism development and environmental responsibility.
Government’s focus on fiscal prudence, macroeconomic stability, and ease of doing business reinforces confidence for long-term investments
Balbir Singh Dhillon, Brand Director, Audi India
The Union Budget’s strong emphasis on infrastructure and capital expenditure is a positive enabler for India’s mobility landscape.
Improved highways and intercity connectivity, especially across Tier-II and Tier-III markets, are strengthening the ownership and usage ecosystem for luxury automobiles.
The government’s focus on fiscal prudence, macroeconomic stability, and ease of doing business reinforces confidence for long-term investments in the automotive sector.
Initiatives like the development of rare earth corridors and the advancement of ISM 2.0 under the India Semiconductor Mission are timely and critical. They signal a clear intent to build resilient domestic supply chains and a technology-driven manufacturing ecosystem that will support the future of automotive and electric mobility in India.
Semiconductor Mission 2.0 and the enhanced ₹40,000 crore outlay for electronics component manufacturing are encouraging
Sameer Moidin, Founder & CEO, EVeium Smart Mobility
Electric two-wheelers today need far more semiconductor and electronic content than ICE vehicles, but the sector is still largely dependent on imports for chips and key components. Steps like the India Semiconductor Mission 2.0 and the enhanced ₹40,000 crore outlay for electronics component manufacturing are encouraging and move us in the right direction. The government’s focus on rare earth permanent magnets and dedicated corridors in mineral-rich states, alongside the creation of high-tech tool rooms and chemical parks, will strengthen domestic mining, processing, and component manufacturing while reducing import dependence. The reduction of basic customs duty on capital goods for lithium-ion batteries is another significant measure that can lower production costs and support local manufacturing at scale. That said, the inverted GST structure remains a real challenge, with inputs taxed higher than finished EVs. Fixing this imbalance will be critical to truly strengthen India’s EV manufacturing ecosystem and make electric two-wheelers more affordable and scalable for mass adoption.
Budget provides a strong strategic foundation to expand electric vehicle offerings
Sudhir Mehta, Founder and Chairman, EKA Mobility
The Union Budget 2026 reinforces India’s resolute commitment to building a sustainable, future-ready mobility ecosystem, and places clean transportation firmly at the centre of the country’s development agenda. The Government’s plan to deploy 4,000 electric buses across multiple regions is a clear endorsement of public transport electrification as a scalable solution to rising urban congestion, emissions and mobility demand. Large public fleet adoption is often the tipping point for wider EV acceptance, and this move strengthens confidence across the electric mobility value chain. While these buses are part of mainstream public transport, their deployment across emerging connectivity and tourism circuits will also play a critical role in improving access to key destinations and regional hubs.
The Budget’s emphasis on transport-led growth through seven high-speed rail corridors, including key routes such as Hyderabad–Bengaluru and the strategically significant Mumbai–Pune railway corridor, along with dedicated freight corridors like Dankuni–Surat, reflects a broader shift towards cleaner and more efficient intercity and regional connectivity. These investments are closely aligned with the Government’s focus on boosting tourism by improving access to major economic centres, pilgrimage circuits and emerging travel destinations. Seamless, low-emission mobility is essential to making tourism more accessible, sustainable and resilient.
Public capital expenditure rising to Rs 12.2 lakh crore, complemented by the proposed Infrastructure Risk Guarantee Fund, further strengthens the investment environment for large-scale transport and EV infrastructure projects. Risk-mitigated financing is critical for accelerating deployment across commercial and mass mobility segments.
For EKA Mobility, this Budget provides a strong strategic foundation to expand electric vehicle offerings, integrate mass transit and smart mobility solutions, and support low-carbon transport networks across cities, industrial corridors and tourism hubs. Overall, the Budget presents a cohesive vision for inclusive, sustainable and future-ready mobility, aligned with India’s broader aspiration of a Viksit Bharat.
In parallel, the Budget’s focus on inclusivity and empowerment, particularly for Divyangjan, resonates strongly with industry-led CSR initiatives aimed at enabling independent mobility and dignified living. Programmes such as the Divyang Sahara Yojana and Divyangjan Kaushal Yojana complement on-ground efforts by industry and civil society to improve access to assistive technologies and livelihood opportunities.
Government is enabling a truly integrated EV supply chain
Jalaj Gupta, Managing Director, Montra Electric
This year’s Union Budget lays a strong foundation for India’s clean mobility and advanced manufacturing ambitions. From supporting lithium-ion cell manufacturing and rare earth processing to strengthening semiconductor and electronics ecosystems through ISM 2.0 and enhanced component schemes, the government is enabling a truly integrated EV supply chain. These initiatives will help deepen localisation, develop skilled talent, and reinforce India’s position as a global hub for sustainable mobility and high-technology manufacturing.
AI Impact Panel will accelerate innovation in privacy-first, multilingual AI solutions
Ritu Mehrotra, CEO and Co-Founder, Shunya Labs
Union Budget 2026’s focus on AI-driven skilling, incentives for sovereign digital infrastructure, and the growth of services exports creates a strong launchpad for Indian deeptech startups. Initiatives such as the AI Impact Panel and tax holidays extending till 2047 will accelerate innovation in privacy-first, multilingual AI solutions, powering the next wave of enterprise adoption across sectors.
Sustained focus on MSMEs, clean mobility, and export facilitation will help the auto component industry navigate global headwinds
Vikrampati Singhania, President, ACMA and Vice Chairman & Managing Director, JK Fenner (India)
The Union Budget 2026–27 lays a clear and credible roadmap for strengthening India’s manufacturing ecosystem. The sustained focus on MSMEs, clean mobility, and export facilitation will help the auto component industry navigate global headwinds while positioning India as a competitive and trusted manufacturing and sourcing destination.
Budget lays a strong foundation for sustained growth across India’s mobility and manufacturing ecosystem
Arnab Banerjee, MD & CEO, CEAT
The Union Budget lays a strong foundation for sustained growth across India’s mobility and manufacturing ecosystem, with continued emphasis on infrastructure development, expansion of freight and logistics networks, and focused support for construction and equipment manufacturing directly translating into higher vehicle utilisation on roads and worksites. This, in turn, drives demand for tyres across commercial and passenger segments, while the push for Tier II and Tier III city growth further broadens mobility needs beyond metros, creating a durable demand environment and a positive long-term outlook for the automotive and tyre industry. Importantly, the focus on education infrastructure and skilling including measures that encourage greater participation of women in technical and professional roles will help industry build a more diverse, future-ready manufacturing workforce.
Budget 2026 introduces strategic manufacturing and clean energy measures
Akshay Shekhar, CEO and Co-founder, Kazam
Union Budget 2026 introduces strategic manufacturing and clean energy measures that creates a stronger foundation for India’s EV ecosystem and energy transition. These announcements position India to build domestic capacity while integrating EVs with broader renewable energy infrastructure.
Strengthening Domestic Manufacturing
The Basic Customs Duty (BCD) exemption on capital goods for lithium-ion cell manufacturing for Battery Energy Storage Systems (BESS) is a significant enabler for the EV ecosystem. This measure will reduce manufacturing costs, improve competitiveness of domestic battery production, and strengthen the entire value chain from cells to complete battery packs. Lower input costs will eventually translate to more affordable EVs and charging solutions for end consumers.
Creating an Integrated Clean Energy Ecosystem
The ₹20,000 crore allocation for Carbon Capture Utilization and Storage (CCUS) demonstrates India’s commitment to comprehensive climate action. When combined with BCD exemptions on sodium antimonate for solar glass manufacturing and capital goods for critical mineral processing, the budget creates synergies between solar, energy storage, and electric mobility, the three pillars of India’s energy transition.
The extension of BCD exemptions for nuclear power projects until 2035 and the exclusion of biogas value from CNG excise duty further diversify India’s clean energy mix, creating a more resilient power ecosystem that can support large-scale EV charging infrastructure.
Impact on EV Charging Infrastructure
These manufacturing incentives will directly benefit the EV charging ecosystem by:
Reducing battery costs for both vehicles and stationary energy storage systems at charging hubs, enabling more viable business models for charging infrastructure operators
Enabling renewable energy integration at charging stations through more affordable solar and storage solutions
Supporting grid stability as BESS can help manage peak loads and enable smart charging infrastructure
Accelerating private investment in charging networks as manufacturing cost reductions improve project economics
Building Toward Viksit Bharat 2047
The ₹2,000 crore allocation for micro enterprises under the Self-Reliant India Fund will support small-scale charging infrastructure providers, battery service providers, and local EV ecosystem players who are critical for last-mile deployment and service delivery.
These measures, combined with the ongoing PM E-Drive scheme (₹10,000 crore through March 2026 with ₹2,000 crore for charging infrastructure), create a two-pronged approach: manufacturing competitiveness through duty relief and deployment support through direct allocations. This positions India to not only manufacture EVs and batteries at scale but also deploy them as integrated energy assets that enhance grid reliability and urban sustainability.
As the EV ecosystem matures, these foundational investments in manufacturing and clean energy will enable the next phase of innovation, smart charging, vehicle-to-grid integration, and distributed energy systems that make EVs active participants in India’s power infrastructure, aligned with our vision of Viksit Bharat 2047.
Strong emphasis on capacity building through the National Centres of Excellence for Skilling
Arif Aga, Director, SgurrEnergy
The strong emphasis on capacity building through the National Centres of Excellence for Skilling—including collaborations in sectors like renewable energy—is vital for equipping the nation with the specialized workforce needed to deploy large-scale solar, wind, green hydrogen, and other clean energy projects, while optimizing renewable energy generation and integration.
This commitment will play a key role in achieving India’s target of 500 GW capacity by 2030, all while ensuring cost efficiency and supporting the broader transition to a sustainable, low-carbon energy future.
Encouraging to see the government’s effort in promoting green mobility by incentivizing local EV component manufacturing
Nemin Vora, Chief Executive Officer, Odysse Electric
We laud 6 steps government’s focus on the local manufacturing ecosystem for assisting the mobility ecosystem and empowering the middle-class purchasing power. It’s encouraging to see the government’s effort in promoting green mobility by incentivizing local EV component manufacturing.
With more disposable income in the hands of consumers—particularly the middle class—purchasing power is set to rise, which will naturally accelerate the shift toward sustainable mobility.
With enhanced credit guarantee cover for MSMEs and startups, particularly in focus sectors crucial for Atmanirbhar Bharat, the budget lays a strong foundation for sustained growth and economic resilience.
Budget 2026–27 charts a decisive course for India’s evolution into a global technology leader
Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions
The Union Budget 2026–27 charts a decisive course for India’s evolution into a global technology leader. The enhanced capital outlay of ₹12.2 lakh crore and the launch of the India Semiconductor Mission 2.0 reaffirm the government’s commitment to deep-tech indigenization. The ₹40,000 crore allocation for electronics component manufacturing is a strategic intervention that propels the ecosystem toward advanced engineering and value creation. The focus on establishing Rare Earth Corridors further strengthens the foundation for a secure and self-reliant supply chain.The budget’s emphasis on providing skilling programmes will encourage the youth in providing quality employment opportunities.
At Socomec, we welcome the government’s thrust on high-tech manufacturing and the ₹10,000 crore MSME Growth Fund, both of which will accelerate innovation and competitiveness across the electrical sector, driving the vision of an ‘Aatmanirbhar’ and ‘Viksit Bharat’ by 2047.
Proposed dedicated rare earth corridors aim to integrate mining, processing, R&D and manufacturing
Suvendu Bose, Partner and Metals and Mining Industry, Grant Thornton Bharat on Rare Earth.
The launch of the Rare Earth Permanent Magnet scheme in November 2025 marked India’s shift from intent to execution in critical minerals. The proposed dedicated rare earth corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu aim to integrate mining, processing, R&D, and manufacturing, addressing the weakest link in India’s energy transition: value-chain depth. Complemented by customs duty exemptions for capital goods in critical minerals processing, nuclear projects, lithium-ion cells and battery storage systems, and solar glass manufacturing, these measures advance India’s strategic self-reliance in minerals and chemicals crucial for EVs, renewables, nuclear power, defence, and advanced manufacturing.
Proposed ₹20,000 crore multi-year outlay for CCUS is a significant and timely intervention
Rupal Gupta, Founder, Managing Director & Chief Executive Officer, TrueRE Oriana Power
Budget 2026–27 marks an important inflection point in India’s energy transition by formally recognising that decarbonisation cannot rely on renewable power alone but must also address emissions from hard-to-abate sectors through credible carbon management solutions.
The proposed ₹20,000 crore multi-year outlay for Carbon Capture, Utilisation and Storage (CCUS) is a significant and timely intervention. It signals a shift from viewing carbon purely as a liability to treating it as a managed resource, particularly for sectors such as power, cement, steel and refining. If implemented through cluster-based deployment and clear utilisation pathways, CCUS can become a foundational pillar of India’s industrial decarbonisation strategy rather than a niche technology experiment.
Equally important are the Budget’s enabling measures that strengthen the surrounding ecosystem. Customs duty rationalisation for lithium-ion cells used in battery energy storage systems, along with support for critical solar and wind manufacturing inputs, will help improve grid stability and cost competitiveness as renewable penetration deepens. The proposed restructuring of PFC and REC to improve credit velocity can further ease financing constraints for large, long-gestation clean energy projects.
However, to fully unlock private capital at scale, sharper execution frameworks are still needed, particularly around payment security for renewable PPAs and clarity on how CCUS projects will be contracted, certified and monetised. Clear standards for measurement, reporting and long-term offtake will be critical to making CCUS bankable. Also, a clearer demand-side support for green hydrogen will be critical to accelerate large-scale deployment of green hydrogen and clean fuels.
Overall, this Budget reflects a maturing energy policy lens, one that balances renewables, storage and manufacturing with carbon management.