The upcoming Union Budget 2025-26 is poised to play a transformative role in shaping India’s economic and environmental future. With a strong emphasis expected on tax reforms, clean energy, and domestic manufacturing, the government has an opportunity to catalyze sustainable growth across sectors. Industry leaders envision simplified GST structures for EVs, incentives for advanced battery technologies, and investments in renewable energy, aligning with India’s climate goals. Support for recycling critical minerals, retrofitting technology, and pre-owned mobility solutions could further bolster economic resilience while reducing imports. As India advances toward a greener and more self-reliant future, this budget could lay the groundwork for a robust, globally competitive economy driven by innovation and sustainability.
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According to Mr. Abhishek Maiti, Director, Industrial Goods & Services at 1Lattice
The upcoming budget for FY26 is expected to focus on tax reforms and boost domestic manufacturing. Simplifying the GST structure remains critical for EVs. A uniform 5% GST across EVs, batteries, and components could lower costs and foster adoption. Resolving GST disparities for spare parts and maintenance would further support affordability and industry growth.
As India advances its climate goals and economic priorities, the upcoming budget has the potential to drive transformative growth. Fostering domestic manufacturing, simplifying taxes, and supporting clean technologies can balance economic expansion with sustainability, paving the way for a greener, more prosperous future.
In renewable energy, the focus will likely shift toward domestic manufacturing. Expanding the production-linked incentive scheme to cover upstream materials like polysilicon and wafers could reduce India’s dependence on imports and strengthen the solar value chain. Projects like the Green Energy Corridor, which received INR 600Cr in FY25, may see enhanced allocations to support transmission infrastructure. With 24.5 GW of solar and 3.4 GW of wind capacity added in CY24, continued budgetary support is anticipated for emerging areas like offshore wind and green ammonia.
According to Mr. Navkaran Singh, MD and Co-Founder, EnerG Lubricants
The government has allocated ₹6,421.33 crore for the automobile sector, with a significant boost to the Production Linked Incentive (PLI) scheme for automobiles and components, which now receives ₹3,500 crore for FY25, up from ₹604 crore in FY24. These initiatives aim to strengthen manufacturing capabilities and support the sector’s overall development. Additionally, ₹2.66 lakh crore for rural development and ₹1.52 lakh crore for agriculture and allied sectors are expected to spur demand for entry-level vehicles, two-wheelers, and small commercial vehicles, particularly in rural markets.
According to Mr. Nikhil Khurana, Founder & CEO, Folks Motor
With the upcoming Union Budget, we anticipate stronger support for clean and sustainable mobility solutions, particularly in the EV sector. At Folks Motor, we are leading the charge in transforming traditional vehicles into hybrid-electric models through our innovative retrofit technology. Our xEV solutions enable vehicles to reduce fuel consumption and cut emissions significantly, providing a greener and more cost-effective alternative to conventional transportation. We hope the government will further help in the adoption of retrofitting, tax benefits for hybrid-electric vehicles, and expansion of charging infrastructure. These initiatives can accelerate the adoption of xEVs and Evs, making clean mobility solutions accessible and affordable for all. We are committed to contributing to India’s vision of a sustainable future and look forward to seeing measures that support this shift towards eco-friendly transportation in the upcoming budget.
According to Mr. Samrath Singh Kochar, Founder and CEO, Trontek
With the Union Budget around the corner, we hope to see a robust push for the electric vehicle (EV) and energy storage sectors, aligning with India’s goals for a sustainable and energy-efficient future. At Trontek, we are committed to driving this transformation through our cutting-edge battery solutions, specifically designed to enhance the performance and reliability of electric vehicles. As India’s EV industry grows, the need for high-quality, long-lasting batteries becomes even more critical. We believe the upcoming budget should continue to incentivize the development and adoption of advanced battery technologies, ensuring that we remain self-reliant and reduce dependency on imports. Furthermore, support for sustainable energy storage solutions will empower not just EVs, but also other sectors such as renewable energy and backup power systems. Trontek is ready to contribute to India’s energy transition, and we look forward to the government’s initiatives that can accelerate the growth of cleaner, greener technologies.
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According to Mr. Rakesh Malhotra, Founder, Livguard Solar
With the upcoming Union Budget, we eagerly anticipate the government’s continued emphasis on sustainability, especially in the renewable energy and electric mobility sectors. At Livguard, we are at the forefront of this transformation. Our Solar360 rooftop solar solutions empower both homes and businesses to transition to clean, sustainable energy, delivering higher solar generation and long-term cost savings. By enabling efficient, eco-friendly energy usage, we’re helping India reduce its carbon footprint while ensuring energy security. Alongside this, our Integrated Drivetrain Solutions—India’s first homegrown, comprehensive EV drivetrain—are revolutionising electric mobility. Designed and manufactured entirely in India, these solutions cater to two-wheelers, e-rickshaws, and L5 vehicles, offering unparalleled quality, performance, and reliability. By reducing import dependency, we are positioning India as a global leader in e-mobility. As India moves toward a sustainable future, we urge the government to continue incentivising clean energy solutions and electric vehicles, which are integral to achieving energy security, reducing emissions, and fostering self-reliance. Livguard remains committed to driving innovation and sustainability in India’s clean energy and e-mobility ecosystems.
According to Mr. ALN Rao, Head- Electronics Circularity, Recykal
We commend the government’s introduction of the Critical Minerals Mission and the anticipated Production Linked Incentive (PLI) scheme in Budget 2024. As India remains heavily dependent on imports for critical minerals, the need to strengthen domestic recycling infrastructure is more pressing than ever. E-waste and battery recycling play a crucial role in recovering rare earth elements and critical minerals, especially given that global production is concentrated in just a few countries.
To reduce this reliance, India must place a strong emphasis on developing advanced recycling technologies and providing financial support for state-of-the-art recycling facilities. In parallel, investment in research and development for the recovery of critical minerals is essential to make the process more efficient and sustainable. Additionally, mechanisms such as the Reverse Charge Mechanism (RCM) will be vital to promoting formal circular economy practices, ensuring smooth operations across the recycling value chain, and driving long-term sustainability.
According to Mr. Samarth Kholkar, CEO & Co-Founder, BLive
As we head into 2025, the Budget represents a critical opportunity to accelerate India’s transition to electric mobility, especially in the two-wheeler segment, which underpins last-mile delivery and accounts for over 60% of urban transportation needs. Government subsidies and supportive regulations have already driven the adoption of over 1 million electric two-wheelers in the previous year, signaling transformative progress.
To sustain this momentum, investments in charging infrastructure and innovative financing solutions are essential to bridge critical gaps, enabling seamless integration for riders and enterprises. Transitioning to electric two-wheelers could cut urban carbon emissions by up to 40% annually and reduce operational costs by as much as 30% for businesses, presenting a win-win for sustainability and economic growth.
We urge the government to continue prioritising green mobility initiatives, empowering businesses and individuals to embrace sustainability, drive efficiency, and build a resilient, globally competitive future for India.
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According to Mr. Narain Karthikeyan, Founder, DriveX
In 2025, we are excited about the potential for growth in India’s pre-owned two-wheeler market. As a prominent player in the mobility ecosystem, DriveX anticipates hearing about new government policies in the 2025 Budget for the pre-owned two-wheeler industry, which is predicted to reach $10 billion by 2026.
We expect policies that control prices and encourage transparency and vehicle quality will benefit both the industry and consumers. Investing in projects that offer digital platforms for the automobile industry can enhance consumer experiences and make it easier to buy, sell, and maintain vehicles. Incentives for tech-driven and environmentally friendly mobility solutions will also influence the future of the automotive sector, fostering convenience and confidence among all stakeholders.
According to Mr. Himanshu Arya, Founder & CEO, Luxury Cart
The pre-owned car segment has seen a significant rise in demand and is growing at the faster pace then the new car market. The government is continuously supporting the automobile industry through various incentives and policies for new cars but the pre-owned cars as a segment hasn’t been the focus area.
This year the pre-owned car industry is hopeful about possible lowering of tax in the upcoming budget that could make pre-owned vehicles more accessible. The booming sector is also optimistic about supporting simple financing options from the banks with regulatory push, such as extended loan schemes and interest rate as competitive as new cars, specifically designed for pre-owned cars.
Additionally, the industry is expecting incentives to promote the pre-owned car industry as an organised, streamlined, and transparent segment. Encouraging EV resale initiatives and providing subsidies for refurbished EV batteries can also contribute to the government’s push for sustainable mobility in the segment. Overall, the industry is hoping for policies that will not only make it easier for people to purchase pre-owned vehicles but also encourage the adoption of more environmentally friendly options.
According to Mr. Kshiteej Mishra, Practice Leader, Mobility, Energy and Transportation at Praxis Global Alliance
EV industry advocates for GST parity on batteries, currently taxed at 18%, compared to 5% for EVs. A uniform rate would streamline costs across the value chain and reduce the overall cost of EVs by 5%-10%. Similarly, lowering the GST on solar manufacturing components, currently taxed at 12%-18%, could significantly enhance the affordability of solar energy. This move would encourage greater consumer adoption, boost domestic manufacturing, reduce reliance on imported technologies, and potentially increase solar installations by up to 15%.
According to Mr. Vivek Lohia, Managing Director, Jupiter Group
As we accelerate India’s e-mobility transition, we eagerly anticipate the Union Budget 2025-26 to provide impactful policy support that will drive the growth of the commercial electric vehicle (EV) industry. We expect the government will continue demand-side incentives such as tax deductions for commercial EV buyers and extend upon the FAME-II subsidies to further boost adoption and industry expansion. To complement these efforts, we urge policymakers to prioritize the development of a robust commercial EV charging ecosystem and introduce targeted tax rebates for R&D in advanced charging technologies and software solutions. By implementing these measures, the upcoming budget can serve as a pivotal step in India’s EV revolution, reinforcing the nation’s commitment to sustainability while solidifying its position as a global leader in the e-mobility sector
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