Higher infrastructure capex, freight corridors, waterways, mining-led industrial corridors and state-backed bus procurement together might create multiple demand touchpoints for trucks and CVs.
01 Feb 2026 | 261 Views | By Autocar Professional Bureau
Union Budget 2026–27 may not have announced a dedicated scheme for trucks or commercial vehicles, but its strong emphasis on infrastructure expansion, freight corridors, waterways and state-backed transport deployment lays the foundation for sustained demand across the commercial vehicle ecosystem.
Presenting the Budget, Finance Minister Nirmala Sitharaman underlined the ...
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Union Budget 2026–27 may not have announced a dedicated scheme for trucks or commercial vehicles, but its strong emphasis on infrastructure expansion, freight corridors, waterways and state-backed transport deployment lays the foundation for sustained demand across the commercial vehicle ecosystem.
Presenting the Budget, Finance Minister Nirmala Sitharaman underlined the government’s continued reliance on infrastructure-led growth. “Public capex has increased manifold from ₹2 lakh crore in FY2014–15 to an allocation of ₹11.2 lakh crore in BE 2025–26. In FY2026–27, I propose to increase it to ₹12.2 lakh crore to continue the momentum,” she said.
For the commercial vehicle industry, the continuity and scale of public capital expenditure is a key demand driver. Higher spending on roads, railways, metros, ports and urban infrastructure typically translates into steady demand for tippers, tractor-trailers, multi-axle trucks and specialised construction and logistics vehicles.
The Budget also outlined a restructuring of India’s freight transport architecture, with implications for long-haul and regional trucking. Sitharaman announced new Dedicated Freight Corridors and a significant push towards inland waterways to promote greener cargo movement.
“To promote environmentally sustainable movement of cargo, I propose to establish new Dedicated Freight Corridors connecting Dankuni in the East to Surat in the West, and operationalise 20 new National Waterways over the next five years,” she said.
While rail and waterways are expected to absorb a larger share of bulk freight, the shift is likely to increase demand for first-mile and last-mile road transport, hub-to-hub trucking and regional distribution networks, keeping commercial vehicles central to India’s logistics ecosystem.
The Budget’s focus on mineral-rich states and industrial corridors further strengthens prospects for heavy commercial vehicles. Sitharaman announced support for Rare Earth Corridors in states such as Odisha, Kerala, Andhra Pradesh and Tamil Nadu.
“We propose to support the mineral-rich States to establish dedicated Rare Earth Corridors to promote mining, processing, research and manufacturing,” she said.
Mining, metals and mineral-linked manufacturing typically generate sustained demand for high-capacity tippers, multi-axle trucks and customised heavy-duty vehicles, particularly in eastern and southern India.
In the passenger transport space, the Budget signalled continued demand from state transport undertakings. Under the Purvodaya development programme, Sitharaman announced the provision of 4,000 electric buses for eastern states.
“Purvodaya will see the provision of 4,000 e-buses,” she said.
The announcement points to steady, policy-backed demand for buses, supporting long-term planning for manufacturers and operators as public transport fleets gradually transition towards cleaner technologies.
The Budget also addressed operating cost pressures for fleet operators through changes in fuel taxation. Sitharaman announced that the entire value of biogas would be excluded while calculating excise duty on biogas-blended CNG.
“I propose to exclude the entire value of biogas while calculating the Central Excise duty payable on biogas blended CNG,” she said.
Summing up the government’s approach, Sitharaman said, “Our first kartavya is to accelerate and sustain economic growth by enhancing productivity and competitiveness.”
For the commercial vehicle industry, Budget 2026–27 reinforces a familiar reality. Even as India expands rail, waterways and cleaner fuels, trucks and buses remain indispensable to infrastructure execution, freight distribution and economic growth, positioning the CV sector for sustained demand in the years ahead.