UNION BUDGET 2026-27: INDUSTRY REACTIONS

Union Finance Minister Nirmala Sitharaman today presented the Budget for 2026-27. It has raised the public capital to a record ₹12.2 lakh crore to boost infrastructure — a key driver of manufacturing and jobs. The fiscal deficit is expected to be around 4.3–4.4 % of GDP as the government balances growth with consolidation.

The Budget also prioritises high-value manufacturing, aiming to strengthen domestic production, supply chains and global competitiveness. There are major outlays for sectors like pharmaceuticals, semiconductors, and emerging technologies, with semiconductor ecosystem development expanded under the Semiconductor Mission 2.0.

Here are major industry reactions to the budget (in reverse chronological order):

Veejay Ram Nakra, Chairman, FICCI Committee on Agriculture and President Farm Equipment Business, Mahindra & Mahindra Limited

Union Budget 2026 is an inclusive budget that ensures continuity of structural reforms and long-term stability and growth at its core. In line with #VikshitBharat2047 it supports rural economic growth through emphasis on supporting high-value crops, promotion of allied sectors like animal husbandry, textiles and tourism, while furthering rural infrastructure and technology support. Initiatives like Bharat Vistar, Skill development, introduction of She Marts, girls’ hostels in every taluka are meaningful steps that would enable wider participation in India’s economic growth story. Scaling manufacturing and introduction of ISM 2.0 further reinforces India’s AtmaNirbhar manufacturing ambitions

Sudarshan Venu, Chairman, TVS Motor Company

The Union Budget 2026 provides a strong and consistent policy framework for India’s emergence has a global powerhouse under the leadership of Prime Minister Narendra Modi. The sustained push on infrastructure, higher capital expenditure, and reforms aimed at easing business conditions will help in attracting private investment and strengthening supply-chain resilience. We welcome the focus on clean energy solutions, MSME growth, and technology-led inclusion - benefiting farmers, women in STEM, youth, and the differently abled. The focus on scaling manufacturing in strategic sectors, building domestic value chains for critical minerals and rare earths, and expanding semiconductor and advanced technology capabilities will be vital for the future of EVs, electronics, and next-generation mobility

Narayan Subramaniam, CEO & Co-founder, Ultraviolette Automotive

“The Union Budget 2026 directly addresses critical supply-chain vulnerabilities while committing to long-term industrial resilience. The announcement of a rare earth mineral corridor is a strategic inflection point, one that positions India to play a defining role in the global energy and technology landscape. By enabling integrated development across mining, processing, and manufacturing, India is taking decisive steps to reduce import dependence and build enduring competitive advantage. Equally important is the doubling of the Auto PLI allocation, which sends a clear signal of intent. For the industry, this is the moment to align capital, innovation, and capacity expansion with India's long-term vision. What will matter most now is policy consistency and strategic foresight. If this commitment is sustained, India can secure leadership not only in electric mobility, but across clean energy, aerospace, and advanced manufacturing.”

Dimitrov Krishnan, MD & CEO, Volvo Construction Equipment

With the 2026 Union Budget, the government has reaffirmed its focus on infrastructure development as a key driver of economic growth. 

Establishing the CIE incentive program and the allocation of ₹12.2 lakh crore for infrastructure will encourage investment in the construction equipment sector and help expand domestic manufacturing capacity in India. Additionally, these initiatives will facilitate new investment, foster local innovation and advance Atmanirbharta in the construction and infrastructure equipment industry

Alexander Schoen, Chief Financial Officer, Daimler India Commercial Vehicles (DICV)

The Union Budget 2026 reinforces India’s long-term growth narrative by placing manufacturing, infrastructure, and supply-chain resilience at the centre of economic policy. The continued thrust on infrastructure development—especially in Tier-2 and Tier-3 cities will directly stimulate demand for commercial vehicles while improving logistics efficiency across the country. Also, the proposed Dedicated Freight Corridor from Dankuni in West Bengal to Surat in Gujarat, spanning key industrial states, will strengthen east-west logistics efficiency and reduce freight costs. Initiatives to scale up strategic manufacturing sectors, strengthen MSMEs, and deepen domestic capabilities in critical areas such as semiconductors, advanced materials and chemicals will further enhance competitiveness of Indian manufacturing. The Budget is positive for the CV Industry the measures announced, create a conducive environment for commercial vehicle manufacturers to invest, innovate, and support India’s transition towards a more resilient, self-reliant, and future-ready mobility ecosystem. Overall, the Budget positions the CV industry as a key enabler of India’s economic expansion.

Ravi Pandit, Chairman, KPIT Technologies

The government's decision to establish dedicated Rare Earth Corridors across mineral-rich states is a strategically important step toward securing India's critical mineral supply chain. For the EV and clean energy sectors, domestic access to rare earth elements will strengthen manufacturing self-reliance and reduce geopolitical vulnerabilities. At the same time, what would be even more strategic is to establish a corridor, that would structurally focus on reducing our dependence on rear earth free metals itself by accelerating and incentivizing innovation, creating further self-reliance. 

We have been able to demonstrate a rare-earth free motor technology that can be a game changer for the EV Ecosystem and is finding widespread interest. We believe such innovations across the broader ecosystem will further accelerate government efforts. With our vision anchored on creating a cleaner world, our efforts on various aspects of technology self-reliance and making EV ecosystem more robust will continue.

Stéphane Deblaise, CEO, Renault Group India

The Union Budget 2026–27 sends a strong and reassuring signal of policy continuity and intent for India’s manufacturing-led growth. Anchored in the Kartavya pillars for Viksit Bharat, the Budget demonstrates a clear commitment to building resilience, competitiveness and technological depth across strategic sectors. The progression to India Semiconductor Mission 2.0, with its focus on equipment, materials, full-stack Indian IP and supply-chain strengthening, aligns closely with the evolving needs of the industry. The targeted push to reduce critical import dependencies, through initiatives on rare earth magnets and continued customs duty exemptions on capital goods for lithium-ion cells, creates confidence for deeper localisation and sustainable mobility. Supported by public capital expenditure of ₹12.2 lakh crore and enhanced logistics corridors, the Budget provides greater momentum to responsible growth of the Indian economy.

Warren Harris, CEO & MD, Tata Technologies Ltd.

The Union Budget 2026 is a masterclass in structural reform, decisively positioning India as the world’s preferred engine for advanced manufacturing, digital engineering, and sustainable innovation. The government’s focus on rare earth permanent magnet corridors will significantly strengthen domestic supply chains critical for EVs, aerospace and advanced electronics sectors, which rely on deep engineering expertise. By launching India Semiconductor Mission (ISM) 2.0 with a fortified INR 40,000 crore outlay for electronics manufacturing, the government has transitioned our ecosystem from assembly-led growth to high-value, full-stack IP and component sovereignty. The strong push on STEM education, AI integration and large-scale youth skilling is equally impactful. Initiatives to embed AI-enabled learning systems and expand research infrastructure reflect a clear commitment to building future-ready talent for Industry 4.0.

At Tata Technologies, we welcome this Budget as a strong enabler of the Viksit Bharat vision, reinforcing India’s ambition to emerge as a global leader in digital engineering and R&D. Enhanced support for electronics manufacturing, including the expansion of component incentives to INR 40,000 crore along with streamlined IT services frameworks and higher safe harbour thresholds of INR 2,000 crore will further strengthen India’s innovation ecosystem. Incentives for aviation manufacturing and MRO will accelerate high-value engineering opportunities across mobility and aerospace.

Overall, this Budget creates a robust platform for innovation-driven growth, advanced manufacturing and global technology leadership

Arvind Chandra, Whole Time Director & CEO Tenneco India

“The Union Budget 2026–27 provides a strong growth-oriented platform for India’s auto components and manufacturing sectors, with a clear emphasis on competitiveness, infrastructure investment, and resilient supply chains. The allocation of ₹12.2 lakh crore towards infrastructure development, including highways, logistics, and urban infrastructure, will create a significant multiplier effect on vehicle demand, directly benefiting the auto components ecosystem.

A strategic focus on policy stability and export competitiveness will further strengthen supply chains and generate employment across the value chain. Measures supporting clean mobility and sustainable technologies, including incentives for EV supply chains and battery manufacturing, are welcome steps toward a balanced transition. We believe this Budget will catalyse long-term investments in technology, localisation, and clean mobility solutions, reinforcing India’s position in advanced automotive engineering and emission control.”

Harshavardhan Chitale, Chief Executive Officer (CEO), Hero MotoCorp.

"The Union Budget 2026 presents a balanced and forward-looking roadmap, and we welcome the strong emphasis on continuity and predictability in fiscal and industrial policy.

Infrastructure investments particularly in highways, rural roads and urban mobility will enhance logistics efficiency and strengthen supply-chain resilience. A sharper focus on localisation will further reinforce domestic manufacturing while improving global competitiveness.

We also welcome the Union Budget’s continued support for the electric mobility ecosystem, including charging infrastructure, duty relief for battery manufacturing, and a focus on building rare earth mineral corridors.  Together, these measures can accelerate the transition to clean mobility and make sustainable transportation a mainstream choice for millions of Indians.

Overall, this Budget charts a confident pathway for industrial expansion, innovation and sustainability, strengthening business sentiment while delivering long-term value for consumers and the economy alike."

Baba Kalyani, CMD, Bharat Forge Ltd.

“The Union Budget 2026 reflects the hallmark of Prime Minister Modi’s stable, strong and visionary leadership, anchored in policy continuity, fiscal discipline and a clear focus on building long-term national capabilities.

I congratulate the Hon’ble Finance Minister on her ninth successive Budget, which strikes a careful balance between macroeconomic stability and sustained investment-led growth. The articulation of a multi-pronged growth framework and the three kartavyas reinforces the commitment to building a competitive, inclusive and future-ready economy.

At a time of heightened geopolitical and supply-chain uncertainty, these measures are bound to strengthen India’s economic resilience and global positioning, sending a strong signal to both Global and Indian investors.

Through this budget, the government’s bet on Manufacturing is reinforced; special emphasis on modern infrastructure, high-speed rail corridors, healthcare and cities as engines of growth, is timely and strategic. The progression of the semiconductor programme to ISM 2.0 through ecosystem development, alongside the announcement of rare-earth corridors across eastern and southern India, will significantly strengthen domestic supply chains. Equally important is the focus on green competitiveness, with meaningful allocations for carbon capture and decarbonisation, aligning sustainability with industrial performance.

Aligned with the geo-strategic realities, the defence sector emerges as a key pillar of this Budget. With defence receiving the second-highest allocation with about 25% increase in the modernisation budget, the emphasis is firmly on upgrading platforms, systems and technologies, while improving procurement efficiency. The message to industry is clear: deepen long-term capability, technology and Aatmanirbharta or self-reliance.

I laud Madam Minister’s special thrust on Information Technology Services for companies setting-up Data Centers and Cloud Services from India; the 22yr tax holiday for such investments is a well-thought initiative aimed at Global leadership in this segment.

Finally, the focus on university-industry clusters and AI-led productivity will help India fully leverage its demographic dividend. Overall, the Budget provides industry the confidence to invest, innovate and partner in building a globally competitive Indian economy.”

Ramesh Palagiri, President Designate, ICEMA and Managing Director & CEO, Wirtgen India Pvt. Ltd.

"The Union Budget’s continued emphasis on infrastructure is a strong signal of confidence in India’s growth story and will help revive domestic demand for construction equipment at a time when the industry has been facing a slowdown. The announcement of an incentive scheme for construction and infrastructure equipment manufacturing further strengthens this momentum by supporting domestic capacity and technology adoption. Together, these measures will create long-term growth for the sector and reinforce the foundation of India’s infrastructure-led economic development.” –

Ganesh Mani, CEO of Switch Mobility. 

"This budget marks a defining moment for commercial electrification. The ₹1,500 crore PM E-DRIVE allocation for e-buses and e-trucks, along with the Purvodaya Initiative's 4,000 e-buses for Eastern states, makes electric public transport a national priority.

With customs duty exemptions on critical minerals and charging infrastructure development, the government is addressing the entire value chain, from manufacturing to deployment.

The road ahead is clear: clean mobility in India is no longer experimental; it is industrial and irreversible."

Dheeraj Hinduja, Chairman, Ashok Leyland

“The Finance Minister has presented a pro-growth, development-focused Budget aligned with the Prime Minister’s vision of a competitive, resilient, and self-reliant India. Increased spending on Infrastructure, Manufacturing, and Defence—along with continued emphasis on roads, logistics, and construction—is expected to accelerate economic growth and drive demand in the commercial vehicle sector. The Budget also advances initiatives in AI, rare earths, and energy transition while supporting key sectors such as healthcare, education, agriculture, housing, and electrification. Overall, it sustains growth momentum and strengthens India’s long-term economic trajectory.”

Kinjal Shah, Senior Vice President & Co-Group Head, Corporate Ratings, ICRA Limited on Commercial Vehicle sector for .

Higher capital outlay on infrastructure at Rs. 12.2 trillion for FY2027 BE, a YoY increase of 11.4%, will support commercial vehicle (CV) demand, especially for the multi‑axle trucks and tippers. The expanded e‑bus procurement, including 4,000 units towards developing Purvodaya tourism destinations, creates another demand avenue for public electric mobility and will support OEM capacity utilization. Procurement of medium and heavy vehicles by the Defence sector also adds demand stability. Overall, the Budget provides balanced support for electrification, capacity creation, and CV market momentum.

S. Sunil Kumar, Country President, Henkel Adhesives Technologies India

“We welcome Union Budget 2026 and its focus on the three Kartavyas of accelerating growth, building national capacity, and ensuring inclusive development. The continued emphasis on infrastructure is reflected in the ₹12.2 lakh crore public capital expenditure. Investments in transport corridors, urban infrastructure, capital goods, electronics manufacturing, and semiconductors signal a clear intent to build deeper, more resilient manufacturing capabilities. For the adhesives sector, this supports demand across infrastructure-led and technology-intensive applications. These range from infrastructure and transportation to electronics and semiconductor manufacturing, where performance, durability, and reliability are critical.

Henkel’s strategic focus on innovation, digitalisation, and sustainability is well reflected in the Budget’s emphasis on sustainability, digital manufacturing, advanced electronics, and Semiconductor Mission 2.0. The ₹20,000 crore allocation for carbon capture and utilisation further signals that sustainability is being treated as an economic enabler rather than a compliance requirement. Taken together, the Budget underscores a responsible growth framework anchored in inclusivity, capability building and long-term competitiveness, and we would like to credit the government for this.”

Vikas Singh, MD, Greaves Electric Mobility

“The Union Budget’s decision to promote the mining and research for Rare earth permanent magnets in India’s mineral-rich states is a positive development towards deepening India's domestic capacity for rare earth sector. This is in line with India's stated policy focus and growing adoption of EVs in India. Over time, today's policy move is also expected to develop India as a globally competitive rare earth hub, weaning away India's and global dependence on China.  Today' s announcement therefore will create the much needed capability and capacity in the upcoming years – that makes India self-reliant in critical component space for EV industry.”

Piyush Arora, Managing Director and 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.

Dr Anish Shah, Group CEO and Managing Director, Mahindra Group

We applaud the Government of India’s Union Budget 2026 presented today by Finance Minister Nirmala Sitharaman. This Budget focuses on enhancing India’s competitiveness in the world, takes meaningful steps towards atmanirbharta and enables a wider participation in the benefits of economic growth.

The emphasis on frontier and strategic manufacturing sectors, including the launch of enhanced schemes such as Biopharma Shakti and the Semiconductor Mission (ISM 2.0), reflects a clear commitment to building global-scale manufacturing capabilities. Strengthening domestic value chains and reducing critical import dependencies will be key to India’s future industrial leadership. 

We particularly welcome the significant increase in capital expenditure to ₹12.2 lakh crore for FY27, which underscores an unambiguous policy focus on infrastructure, regional development and job creation across the country. This will play a pivotal role in crowding in private investment, enhancing productivity and supporting the growth of tier-2 and tier-3 cities as emerging economic hubs.  

The proposal to establish a dedicated ₹10,000 crore SME growth fund and incentives for industry clusters is a positive step toward enabling future job creation, supporting enterprise scaling, and boosting competitiveness of small and medium businesses.  

Initiatives to promote critical minerals, rare earth corridors and enhanced electronics and capital goods manufacturing are forward-looking and essential for a resilient industrial ecosystem that can thrive amid global uncertainties.  

And, most importantly, the emphasis on sabka saath, sabka vikaas is commendable. The actions to ensure every community has access to resources and opportunities will enable robust and sustainable economic growth.

Overall, Budget 2026 signals continuity in policy direction, a firm commitment to sustainable and inclusive growth, and efforts to unlock India’s economic potential at scale. We believe these measures can accelerate innovation, enhance value-added manufacturing and strengthen India’s standing in the world.

Santosh Iyer, MD and CEO, Mercedes-Benz India

Budget's strong focus on infrastructural development, with addition of Rs 1 lakh crore in capex, is a step in right direction developing the country’s evolving mobility ecosystem. Better highways and improved intercity connectivity have historically driven luxury car demand in India. The fiscal prudence reflected in the 4.3% deficit target, combined with strong focus on exports, sends a strong signal of macroeconomic stability, which may lead to a less volatile currency. Overall, the emphasis of the budget is on strengthening ease of doing business, and the deferral of customs duty payments up to 30 days, can improve cash flow significantly. This budget primarily focuses more on long-term gains, rather than immediate ones.

Bharat Madan, Whole-time Director & CFO, Escorts Kubota

The Union Budget for FY 2026–27 continues the government’s reform-led focus on improving farm incomes. The emphasis on high-value crops like cashew and initiatives such as Bharat-VISTAAR reflects a push towards more efficient, technology-led farming. This builds on earlier reforms such as GST rationalisation in tractors, which reduced cost friction and improved demand transparency. Together, these measures support wider adoption of mechanisation and data-driven practices as Indian agriculture moves up the value curve. The increase in capital expenditure to ₹12.2 lakh crore and the sustained focus on infrastructure are also welcome and support construction activity and equipment demand across roads, logistics and urban development. The proposed scheme for construction and infrastructure equipment manufacturing is another positive step and we look forward to its details. 

Poonam Upadhyay, Director, Crisil Ratings on Auto and Electronics sector

The increase in outlay for the electronics component manufacturing scheme to Rs 40,000 crore from Rs 22,919 crore is timely and crucial.

With investment commitments already at about Rs1.15 lakh crore, nearly double the original target, this hike ensures that incentive payouts in the coming years will not hinder execution of projects as they transition from announcement to implementation.

The increased outlay is particularly relevant for sectors with elevated and rising electronics content, such as automobiles and auto components, smartphones, and IT hardware, where a reliable local supply of electronic parts supports cost stability and manufacturing growth.

Shailesh Chandra, President, SIAM and MD & CEO, Tata Motors Passenger Vehicles Ltd

We welcome the Union Budget 2026–27, which continues to focus on long-term, sustained economic growth with a strong emphasis on manufacturing, infrastructure including freight corridors & waterways and fiscal prudence. The decision to raise the capital expenditure target to Rs 12.2 lakh crore for FY 2026-27 from Rs 11.2 lakh crore in the current year will provide a strong impetus to demand creation and industrial activity, including the Automobile sector.

Enhanced support for electronic components manufacturing, setting up dedicated corridors for mining and processing of rare earth, along with initiatives to establish high-tech tool rooms and supporting container manufacturing, will develop supply chain resilience and help in streamlining exports. The allocation of 4,000 e-buses for the Purvodaya States will accelerate the transition toward sustainable public mobility solutions.

Continued exemption of Basic Customs Duty on Capital Goods used for manufacturing lithium-ion batteries, along with the extension of concessional duty benefits for lithium-ion cells and their parts used in manufacturing batteries for electric and hybrid vehicles for a further two years till March 2028, will enable creation of a robust EV ecosystem in the country.

Vikrampati Singhania, President, ACMA and Vice Chairman & Managing Director, JK Fenner (India) Limited

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.

Deepak Jain, Chairman, Lumax Group

The Union Budget provides a stable macroeconomic foundation through its focus on capital expenditure and MSME support. The ₹4,000 crore enhancement to the Self Reliant India Fund and the government’s emphasis on creating ‘Champion MSMEs’ are particularly encouraging for the auto components supply chain. The auto industry will benefit the broader push toward manufacturing and infrastructure development as it is expected to support demand growth. The targeted duty exemptions on capital goods for lithium-ion cells used in battery storage signal the government’s intent to strengthen India’s clean mobility and advanced manufacturing ecosystem. We look forward to the detailed Budget documents for greater clarity on customs duty rationalisation and any sector-specific measures.

Mallika Srinivasan Chairman and Managing Director, TAFE

I applaud the Union Budget 2026 presented by the Honourable Finance Minister, Smt. Nirmala Sitharaman, as a balanced and forward-looking roadmap that reinforces India’s commitment to sustainable and inclusive growth.The Budget demonstrates strong fiscal prudence, with clear commitment to consolidation and a fiscal deficit target of 4.37%, reaffirming the government’s focus on the macroeconomic stability while continuing to support growth priorities. Public  investment has been an anchor of India’s growth-story, and it is encouraging to see the sustained and enhanced emphasis on capital expenditure. The continued push towards dedicated freight corridors, high-speed rail corridors, and container  manufacturing underscores the government’s resolve to build world-class  infrastructure that boosts long-term productivity and growth. The vision of Viksit  Bharat is translated into concrete measures to strengthen manufacturing in critical
sectors such as rare-earth minerals, electronics and pharmaceuticals. This focus will deepen domestic value chains, enhance export competitiveness in strategically important sectors. The introduction of the SME Growth Fund is a critical enabler for accelerating growth in the MSME sector, by providing equity support and nurturing champion MSMEs. The recognition of tourism as a key growth engine is another  positive highlight. The range of schemes introduced to promote tourism will support employment generation, regional development, and the growth of allied sectors across the country.

The Union Budget 2026 reflects the Finance Minister and the Government of India’s commitment to a strong, sustainable, growth-oriented, and self-reliant economic framework.

Anurag Choudhary, CMD and CEO, Himadri Speciality Chemical Limited

We applaud the Union Budget 2026-27 for its visionary focus on fortifying India’s strategic manufacturing independence. The establishment of dedicated Rare Earth Corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu is a watershed moment; it will create the integrated infrastructure needed to transform raw minerals into high-value components for the EV and defense sectors.

Furthermore, the exemption of Basic Customs Duty (BCD) on critical inputs-specifically sodium antimonate for solar glass and materials for lithium-ion cell manufacturing-is a decisive move. These measures will significantly lower capital costs for domestic battery production, making ‘Make in India’ energy storage solutions globally competitive.

This Budget moves India from intent to execution—laying the foundation for a self-reliant, innovation-led, and sustainable green-manufacturing future, a pretext move towards our goal of Atmanirbhar Bharat.

Abhishek Malik, Executive Director, Calcom Vision

The Union Budget 2026 reinforces India’s manufacturing ambitions with an enhanced ₹40,000 crore outlay for electronics manufacturing and a ₹10,000 crore SME Growth Fund to strengthen domestic value chains. These measures will support innovation and scale across the sector, creating a more robust ecosystem in which companies like Calcom Vision can contribute to technology-driven growth and energy-efficient solutions, furthering India’s journey as a globally competitive manufacturing hub.

Chandragupt Prakash Mangal, Managing Director, Mangalam Worldwide

Aligned with the vision of Viksit Bharat, the Union Budget reinforces the focus on sustainability-driven growth for India’s core manufacturing sectors. For stainless steel manufacturers, decarbonisation is pivotal to long-term competitiveness and aligning with global export standards.
The ₹20,000 crore commitment towards carbon capture and utilisation acknowledges the challenges faced by hard-to-abate sectors and is expected to accelerate the adoption of cleaner, more efficient processes across the steel value chain. A well-defined implementation roadmap and access to advanced technologies will be crucial in translating this support into tangible, industry-wide impact. 

Aravind Mani, Co-founder and Chief Executive Officer, River Mobility

The Budget reinforces India’s steady progress towards Viksit Bharat by putting long-term manufacturing strength and supply chain resilience at the centre of economic policy. We welcome the government’s focus on developing rare earth corridors across mineral-rich states, as access to critical minerals and domestic processing is essential for building a self-reliant EV ecosystem. The proposed cluster-based chemical parks are also a positive step, as stronger domestic chemical manufacturing will directly support batteries, components and advanced materials. Together, these measures reduce import dependence, support large-scale EV manufacturing and signal India’s intent to emerge as a global hub for next-generation mobility.

Arnab Banerjee, MD and 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.

Deepak Shetty, MD and CEO JCB India

We warmly welcome Budget 2026, which charts a transformative course to accelerate India’s economic growth and advance the vision of a ‘Viksit Bharat’. The focus on scaling up manufacturing across seven strategic sectors and promoting champion MSMEs is a decisive step toward strengthening India’s domestic capabilities while establishing the country as a global manufacturing hub.

A significant boost comes for the construction equipment industry, with a focus on domestic manufacturing of high-value capital goods such as tunnel boring machines, earthmoving equipment, and crane systems. This initiative is set to drive demand for advanced, locally produced equipment, fuel innovation and elevate India’s position as a globally competitive hub in the construction ecosystem. The strong emphasis on infrastructure, particularly the development of seven high-speed rail corridors as growth connectors, will further enhance regional integration, improve urban mobility, and boost productivity, making India an attractive destination for global investment.

Complemented by reforms such as a review of the Foreign Exchange Management framework, measures to deepen the corporate bond market, and enabling non-resident investors to participate in equities through the Portfolio Investment Scheme, the Budget creates a robust environment for long-term capital flows and enterprise growth.

Overall, Budget 2026 strikes the perfect balance between growth, structural reforms, and long-term competitiveness, paving the way for India to emerge as a world-class manufacturing and infrastructure hub while generating opportunities that benefit countries across the globe.

Gaurav Dolwani, Founder and CEO, LICO Materials Pvt Ltd

The Union Budget 2026 clearly recognises the role of recycling and secondary materials in strengthening India’s battery supply chain. The full customs duty exemption on waste and scrap of lithium ion batteries and critical minerals directly addresses long standing challenges around feedstock availability and cost.

For recyclers, consistent access to raw material is what enables scale, investment, and better recovery outcomes. These measures improve the business case for domestic recycling and help bring recovered materials back into the manufacturing ecosystem in a reliable way.

By supporting domestic recycling capacity, the Budget supports the Make in India agenda by strengthening material security and enabling a more circular battery supply chain.

Jaideep Wadhwa, Director, Sterling Tools Limited

This is a landmark Budget anchored in the spirit of Kartavya and focused on building economic resilience. The proposal to create Rare Earth Corridors is the missing link for India’s EV sovereignty, directly addressing long standing dependence on imported NdFeB magnets. By de-risking the value chain from mining to advanced manufacturing and backing strategic and frontier sectors, Budget 2026 lays the foundation for true Atmanirbharta in electric mobility.

Rahul Garg, Founder-CEO, Moglix

The Union Budget 2026 aligns with India's long-term vision of a resilient, self-reliant manufacturing powerhouse on the global stage. Its strong manufacturing focus through targeted support for strategic sectors, legacy industrial clusters, and a record ₹12.2 lakh crore capex is a game-changer. Investments in modernization, the new Surat- Dankuni East-West Dedicated Freight Corridor, capital goods schemes, and large textile parks will cut logistics costs, improve productivity, and deepen global value chain integration, propelling India's manufacturing journey forward.

Lakshminarayanan (Lux) Ramalingam, COO, Quest Global

The Union Budget 2026 sends a strong signal that India is moving decisively from sector-specific interventions to building strategic, interconnected industrial ecosystems. The expansion of the India Semiconductor Mission 2.0, coupled with higher outlays, PhD funding, and AI-focused research investments, reflects a clear understanding that long-term competitiveness in semiconductors will be driven by deep R&D, advanced skills, and indigenous IP creation rather than manufacturing alone.

Dr. Uday Narang, Founder and Chairman, Omega Seiki Mobility 

The Union Budget 2026–27 marks a decisive shift in making India a global hub for smart and sustainable mobility. The strong push on advanced manufacturing, AI-led technologies, electronics and semiconductor expansion, rare-earth and battery supply chains, the ₹10,000 crore SME Growth Fund, and higher public capex will significantly strengthen the EV ecosystem. What stands out is the focus on ease of doing business and MSME financing, which lowers cost barriers and improves supply-chain resilience. For companies like Omega Seiki Mobility, this creates the right environment to scale innovation, deepen localisation, expand charging and logistics infrastructure, and accelerate EV adoption across Tier-2 and Tier-3 markets. Together, these measures position India not just as a large EV market, but as a competitive global export base for clean, tech-driven mobility solutions.

Jayadev Galla, Chairman and Managing Director, Amara Raja Energy and Mobility Limited

Overall, the Union Budget 2026 is balanced and focused on long-term growth. The sustained focus on infrastructure, especially logistics, freight corridors and inland waterways, is critical for manufacturers as it directly lowers transportation costs and improves supply chain reliability. We welcome the focused support for domestic lithium-ion cell manufacturing, energy storage, and critical minerals, which are essential for reducing import dependence. The Budget strengthens confidence for manufacturers investing in advanced technologies and positions India well to emerge as a global hub for sustainable and future-ready manufacturing.

Vaibhav Kaushik, Co-founder and CEO, Nawgati

For the mobility ecosystem, viewing fuel and charging access as an integrated national network aligns well with the Budget’s emphasis on sustainable and efficient infrastructure. Continued support for EV expansion, digital payments, and logistics modernisation can improve utilisation across fuel stations and charging points in cities and along highways. From an industry perspective, the next phase will depend on execution clarity, common standards, and interoperable data systems that enable real-time visibility. If implemented effectively, these measures can reduce congestion and downtime, optimise fleet operations, and ensure that existing infrastructure delivers stronger economic and environmental outcomes.

Ravi Mehra, Managing Director, Uno Minda

We welcome the Union Budget 2026–27, which is focused on strengthening India’s manufacturing ecosystem, advancing Viksit Bharat, and fostering Aatmanirbharta, driven by initiatives to boost MSME growth,  the proposed high-level committee to build industrial resilience and reduce import dependencies.

The strong push for electronics and advanced manufacturing highlighted by the ₹40,000 crore outlay under the Electronics Components Manufacturing Scheme and the launch of India Semiconductor Mission 2.0 focused on equipment and material design will significantly strengthen domestic value chains and support the auto components sector. Additionally, the government’s proposal to establish dedicated rare-earth corridors will help secure supplies of critical materials by promoting research and mining. Ease of doing business reforms, including the increase in portfolio investment limits to 10%, will further enhance investor confidence.

We particularly welcome the addition of 35 capital goods for EV battery manufacturing to the list of exempted capital goods, This move will meaningfully boost domestic manufacturing of lithium-ion batteries, reduce import dependence, and support the growth of electric mobility and energy storage in India.
Measures to strengthen capital goods manufacturing, including high-tech toolrooms, will help improve scale, quality and cost efficiencies.

Overall, the Budget lays a strong foundation for sustainable and self-reliant manufacturing growth.

Mukesh Vasani, Chairman and Managing Director, Aimtron Electronics

The Union Budget meaningfully advances the vision of Viksit Bharat by strengthening India’s electronics and semiconductor manufacturing backbone. The ₹40,000 crore allocation for electronics components and semiconductors will directly benefit Aimtron by improving domestic availability of semiconductor-linked components, reducing import dependence, and enabling faster scale-up of our EMS, PCB assembly, box-build, and system integration operations serving India, the US, and global customers. Coupled with the SME Growth Fund and logistics-led infrastructure investments, the budget reinforces India’s role as a trusted, export-ready manufacturing hub, aligning closely with Aimtron’s India–US growth strategy.

Saurabh Vijayvergia, Founder and CEO, CoverSure

Union Budget 2026 takes a people-first step by exempting interest awarded by Motor Accident Claims Tribunals from income tax, ensuring accident victims receive their full compensation without erosion through TDS.

This intent carries forward into the Budget’s broader focus on strengthening the financial sector and positioning AI as a growth multiplier, signalling a move towards a more transparent, efficient, and consumer-protective ecosystem. For customer-backed, AI-led insurtechs like CoverSure, this creates the right environment to simplify claims, reduce friction, and restore trust in insurance as a true safety net.

Dilip Chandak, Managing Director, Vega Helmets

Budget 2026-27's exemption of TDS and income tax on MACT interest awards is a pragmatic, victim-centric reform that addresses a critical pain point in India's road accident ecosystem—where claims often drag for years, eroding real value through deductions and inflation. This ensures full payouts reach natural persons faster, reducing financial distress for families while nudging insurers toward timelier settlements, potentially lowering systemic costs. From Vega's vantage as a helmet leader producing millions annually, this pairs perfectly with MSME boosts and infra pushes to amplify prevention: imagine helmet compliance rising 20-30% via awareness campaigns tied to economic incentives, slashing accidents by thousands yearly and fueling sustainable growth in legacy sectors like ours. FM Sitharaman's vision aligns fiscal relief with safety—now, let's enforce it on the ground. We believe this perspective from the road safety industry will add value to your Budget 2026 coverage, highlighting the interplay between fiscal policy, accident compensation, and prevention efforts.

Kunal Mundra, Founder and CEO, Astranova Mobility

This budget has highlighted the government's emphasis on enabling financing for India's future and the critical role specialised NBFCs play in the ecosystem. The Budget acknowledges that banks are not the only answer to India’s financing needs and that complex, niche industries require specialised financing institutions that offer more than simply credit, by truly comprehending the asset lifecycle. This shift moves financing away from one-size-fits-all lending towards more focused, developmental support. For companies working in clean mobility, this is a very encouraging signal and reinforces the fact that enabling India’s energy transition will require specialised financing institutions like Astranova Mobility with the required capabilities to enable deep financing penetration and hence faster adoption.

Saket Mehra, Partner, Auto and EV, Grant Thornton Bharat

The announcement to develop industrial corridors across Odisha, Karnataka, Andhra Pradesh, and Tamil Nadu reinforces the Government’s vision to reduce import dependency for manufacturing components critical to the EV ecosystem. This development will accelerate the rollout of the INR 7,280‑crore scheme announced in 2025, which aims to expand India’s capabilities from mining to the entire value‑chain system, strengthening domestic manufacturing and enabling end‑to‑end value creation.