The Union Budget 2026 has drawn strong attention from the electric vehicle and clean energy ecosystem for its clear push toward manufacturing, infrastructure, and long-term sustainability. The budget outlines a vision where clean mobility, energy storage, and domestic manufacturing work together to support economic growth while reducing dependence on imports.
A key highlight is the continued and expanded customs duty exemptions on capital goods and components used for manufacturing lithium-ion cells and battery energy storage systems. These measures are expected to lower production costs, improve project viability, and encourage large-scale domestic manufacturing. By easing the cost burden on advanced equipment and inputs, the budget aims to help manufacturers scale faster and compete globally.
The focus on MSMEs is another important aspect. The creation of a ₹10,000 crore SME Growth Fund, along with better integration of digital platforms for receivables and public procurement, is expected to improve access to growth capital and liquidity. This is especially relevant for capital-intensive sectors like EV batteries, charging infrastructure, and energy storage, where long working capital cycles have been a long-standing challenge. Support for MSMEs in Tier-II and Tier-III cities, including interest subvention, is likely to accelerate local manufacturing, charging networks, and job creation beyond major urban centers.
On the infrastructure front, the budget’s emphasis on expanding highway green corridors and strengthening public electric transport sends a strong signal for mass adoption. Improved charging availability across highways and cities is expected to reduce range anxiety and support inter-city and fleet-based EV usage. The addition of electric buses to public transport systems further reinforces the government’s intent to scale clean mobility in everyday use.
The budget also recognizes the importance of supply-chain resilience. Continued policy support for rare earths, critical minerals, electronics, and semiconductors highlights the need to build secure domestic ecosystems for materials that are essential to EVs and energy storage. Incentives for battery recycling and pilot projects that allow batteries to interact with the power grid reflect a growing view of batteries as long-term assets rather than one-time products.
Rahul Munjal, Chairman & Managing Director, Hero Future Energies
Rahul Munjal welcomed the Union Budget as pragmatic and visionary, focused on infrastructure, manufacturing, and faster approvals. He highlighted customs duty exemptions for lithium-ion cells and BESS, support for carbon capture, and long-term nuclear energy backing as key enablers for domestic clean energy capacity and capital-intensive investments.
Pratik Kamdar, Co-Founder & CEO, Neuron Energy
Pratik Kamdar said the Budget strengthens MSME-led manufacturing through the ₹10,000 crore SME Growth Fund and TReDS integration. He welcomed customs duty exemptions for BESS manufacturing, a focus on rare-earth supply chains, and support for carbon capture, calling it a policy framework that builds execution-ready and resilient energy manufacturing ecosystems.
Chetan Maini, Founder & Chairman, SUN Mobility
Chetan Maini termed the Budget a major boost for electric mobility, citing highway green corridors, duty exemptions for lithium-ion cells and BESS, battery recycling incentives, and V2G pilots. While appreciating these steps, he flagged concerns around high GST on battery components and the absence of EV retrofit and swapping-focused policies.
Ayush Lohia, CEO, YOUDHA
Ayush Lohia said the Budget sends a strong signal to India’s EV ecosystem by extending duty exemptions on lithium-ion components and supporting critical mineral processing. He noted that MSME-focused measures like the SME Growth Fund and TReDS integration will improve capital access, drive innovation, and support clean mobility growth in Tier-2 and Tier-3 markets.
Jalaj Gupta, Managing Director, Montra Electric
Jalaj Gupta stated that the Budget lays a solid foundation for clean mobility and advanced manufacturing. Support for lithium-ion cells, rare earths, semiconductors, and electronics will strengthen localisation, build skilled talent, and position India as a global hub for sustainable mobility and high-tech manufacturing.
Shivam Sisodiya, CEO & Co-Founder, Bijliride
Shivam Sisodiya said Budget 2026 strengthens India’s EV and energy storage ecosystem by lowering manufacturing costs and improving supply-chain resilience. He welcomed duty exemptions, support for battery storage, rare earths, and electronics, and the push for electric buses, which will accelerate fleet electrification and shared mobility adoption.
At the same time, the allocation for carbon capture, utilization, and storage shows an understanding that industrial decarbonization must move alongside growth, especially for hard-to-abate sectors. Overall, the Union Budget 2026 presents a balanced approach that combines cost reduction, infrastructure expansion, MSME support, and technology development, positioning clean mobility and energy storage as central pillars of India’s future economic and environmental strategy.
