The Union Budget 2025-26 has been met with widespread appreciation from leaders in India’s electric vehicle (EV) and clean-tech industries. The policy initiatives outlined by the Hon’ble Finance Minister have reinforced the country’s commitment to EV adoption, manufacturing self-sufficiency, and sustainable mobility.
Boosting Domestic EV Manufacturing and Affordability
Welcoming the Budget’s emphasis on electric mobility, Mr. Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd, stated, “The reduction in customs duty on lithium and other essential raw materials will significantly lower input costs for lithium-ion battery production, making EVs more affordable while enhancing domestic manufacturing. The introduction of a National Manufacturing Mission for clean tech industries will accelerate India’s transition to sustainable transportation.”
He further highlighted that recognizing MSMEs as the ‘second engine’ of economic growth will have a multiplier effect across various sectors, including e-mobility. Additionally, the expanded tax bracket is expected to increase consumer purchasing power, further driving demand for EVs in India.
Strengthening Battery Recycling and Circular Economy
Mr. Rajesh Gupta, Founder & Director, Recyclekaro, lauded the government’s focus on battery recycling and resource availability. “The exemption of Basic Customs Duty (BCD) on critical minerals such as cobalt, lithium-ion battery scrap, lead, and zinc will enhance domestic resource supply, reduce import dependency, and accelerate value addition within India. This aligns with the nation’s vision of a circular economy and fosters investment in battery recycling and EV supply chains.”
Clean-Tech Manufacturing and Global Competitiveness
Echoing the sentiment, Mohal Lalbhai, Co-founder & Group CEO, Matter Motor, emphasized the importance of clean-tech investments. “The exemption of BCD on critical EV minerals and duty-free status for 35 battery components will secure the supply chain, lower costs, and accelerate EV adoption. MSMEs will benefit from capital access reforms and compliance simplifications, driving innovation and global manufacturing ambitions.”
He further noted that tax incentives for green investments and startup-friendly policies would boost clean-tech growth, aligning with India’s ‘Make in India, Make for the World’ vision.
EV Industry Sees a Bright Future
Mr. Nishant Arya, Vice Chairman & MD, JBM Auto Ltd, stated that the Budget lays a strong foundation for India’s transition to a sustainable and technology-driven economy. “The push for CleanTech manufacturing, including duty exemptions on EV battery production and critical minerals, will accelerate the Prime Minister’s E-Drive scheme. This move will lower production costs and incentivize companies to scale up operations, drive technological advancements, and create high-value jobs.”
The announcement of 120 new regional airports is also expected to boost demand for electric tarmac buses, strengthening India’s sustainable transit network.
Expanding EV Infrastructure and Green Investments
Delta Electronics highlighted how investments in modernizing smart grids and EV charging infrastructure will support higher penetration of clean mobility. “PLI incentives for R&D and manufacturing will further cement India’s position as a global manufacturing hub. With AI-led innovation and digital transformation at the core, India is set to accelerate its path to net-zero emissions while leading in technological advancements.”
Encouraging Faster EV Adoption
Mr. Naveeth Menon, VP – Sales & Marketing Operations, BAXY Mobility, praised the government’s decision to eliminate the basic customs duty on critical materials for EV manufacturing. “The budget introduces groundbreaking initiatives to accelerate the shift towards lithium-ion batteries. Tax exemptions for battery manufacturing will enhance local production, positioning India as a global hub for EV manufacturing while advancing the country’s carbon neutrality goals.”
MSME Growth and Energy Infrastructure Development
Pratik Kamdar, CEO & Co-Founder, Neuron Energy, noted that the budget’s focus on clean energy will boost EV battery production and MSME growth. “The National Manufacturing Mission’s support for MSMEs represents a significant step forward in bolstering domestic EV battery production. The removal of customs duty on lithium-ion batteries will improve supply chain cost-effectiveness and flexibility.”
He further emphasized that stronger energy infrastructure, particularly EV charging stations powered by power sector reforms and state incentives, will accelerate adoption.
Urban Mobility and Regional Connectivity
Ashok Vashist, Founder and CEO, WTiCabs, highlighted the importance of expanding regional connectivity under the UDAN scheme. “With 120 new regional destinations, WTi Cabs and the people mobility industry will enhance airport transfers, intercity travel, and last-mile connectivity. Additionally, duty exemptions on 35 capital goods for EV manufacturing will improve technology and lower vehicle costs, facilitating a smooth transition to electric mobility.”
Empowering the Gig Economy and Startups
Ms. Rashi Agarwal, Co-founder & Chief Business Officer, Zypp Electric, welcomed the initiatives to support startups and gig workers. “The establishment of a ₹10,000 crore ‘Fund of Funds for Startups’ will boost innovation and job creation. Additionally, new identity cards and healthcare coverage for gig workers under PM-Jan Aarogya Yojana will provide social security, benefiting thousands of riders engaged in last-mile delivery services.”
Building a Self-Reliant EV Industry
Mr. Hyder Ali Khan, CEO & Director, Godawari Electric Motors, acknowledged the budget’s impact on India’s self-reliance in clean tech. “The National Manufacturing Mission will enhance local production of EV batteries and solar panels, reducing import dependency and improving cost efficiency. Five new National Centres of Excellence for Skilling will help build a stronger EV workforce.”
He further noted that the increased tax exemption up to ₹12 lakh will boost consumer spending and accelerate EV adoption across segments.
The Union Budget 2025-26 has set the stage for India’s accelerated transition to green mobility, strengthening the clean-tech ecosystem while fostering innovation, job creation, and economic growth. Industry leaders unanimously agree that these policy measures will propel India’s EV sector to new heights, making sustainable transportation more accessible and viable for the masses.
