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The Union Budget 2026 emphasized the importance of energy transition and domestic manufacturing as pillars of a self-reliant economy. With the historic hike in Capital Expenditure and the rationalization of duties on solar inputs, the Government has strengthened the backbone of the renewable sector.
The Tech Panda asked Electric Vehicle and Cleantech industry players what they thought of the Union Budget 2026.
Sanjay Choudhari, Chairman, SBL Energy Limited
“The Union Budget 2026-2027 points to a clear strategic response to the growing global trade tensions and supply-chain vulnerabilities. By establishing dedicated rare earth corridors across mineral-rich states and supporting downstream processing, research, and manufacturing, the government is addressing one of India’s most critical dependencies – access to strategic materials dominated by global monopolies. This initiative not only strengthens domestic capabilities but also provides a significant boost to the mining sector, incentivising exploration, commercial-scale extraction, and integration with downstream industries.
“Apart from this, the parallel push to strengthen manufacturing across priority sectors, including the creation of dedicated chemical parks, reflects a shift from fragmented capacity to integrated industrial ecosystems. To sum it all up, these measures reduce import dependence, build supply-chain resilience, and position India as a more reliable and competitive player in global manufacturing networks.”
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 INR40,000 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.
Kunal Arya, Co-founder & MD, 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 INR10,000-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.”
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.”
Rahul Kejriwal, Executive Director, Remsons
“We welcome the Union Budget 2026–27 and its strong focus on strengthening India’s position as a global hub for manufacturing and innovation. The push for targeted investments in advanced manufacturing, capital goods and clean mobility solutions open up fresh opportunities across vehicle manufacturing, auto components, and EV. EV component support will significantly benefit domestic electric motor manufacturing for two-wheelers, three-wheelers, and commercial EVs. Overall, the Budget will significantly strengthen domestic value chains and support the auto components sector.”
Dr. Chetan Shah, Chairman & Managing Director, Solex Energy Limited
“The Union Budget 2026–27 clearly positions manufacturing at the heart of India’s energy transition. By extending customs duty exemptions for batteries, energy storage systems, critical mineral processing, and nuclear infrastructure, the government has provided long-term policy certainty that will accelerate domestic value addition and global-scale manufacturing in India. This budget recognises that energy security, clean energy deployment, and industrial competitiveness are deeply interconnected. The strong push for solar integrated with storage, coupled with support for advanced manufacturing and R&D, reinforces India’s ambition to ‘Make in India for the World’—not just as a market for clean technologies, but as a trusted global manufacturing hub driving the energy transition.”
Shyam Sunder Jindal, Promoter, BC Jindal Group
“In the Budget 2026, it is encouraging to note the Government’s focus on domestic manufacturing of lithium-ion batteries and solar glass to augment India’s goal of installing 500 GW of non-fossil energy capacity by 2030. Extending the exemption of the basic customs duty on capital goods used for manufacturing lithium-ion cells for battery energy storage systems and on sodium antimonate used in solar glass are welcome steps. This move is poised to play a constructive role in building a power sector that is capable of seamlessly catering to India’s growing energy needs while supporting the country’s clean energy transition”.
Mayank Garg, CEO, Aroma Solar Energy
“The Union Budget 2026 is a massive boost for domestic solar manufacturers, addressing both structural efficiency and cost competitiveness. The historic increase in Capital Expenditure to INR12.2 lakh crore provides the robust infrastructure backbone essential for industrial growth.
“We are particularly encouraged by the revision of duties on solar cells and solar allied products. This move to rationalise the duty structure is a decisive step to correct inverted duties, significantly lowering our input costs and boosting domestic value addition. When combined with the new Economic and Freight Corridors, which will reduce our logistics costs for moving heavy glass and modules, the Government has effectively removed the two biggest bottlenecks for the industry. This ecosystem paves the way for Make in India solar brands to not just serve the domestic market, but compete globally.”
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