Budget 2026: Duty cuts, infra development -- EV industry's checklist for Sitharaman ahead of Feb 1

As Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget for 2026-27 on Sunday, February 1, 2026, at 11 AM, the electric vehicle (EV) industry is keenly focused on how the budget will influence the future of green mobility in India. This marks Sitharaman's ninth consecutive budget presentation, and industry stakeholders are eager for fiscal support that can propel the EV sector forward. One of the main requests from automakers is for the government to rationalize duties on electric vehicles and their associated components, such as batteries and powertrain systems. By lowering these costs, the industry believes it can significantly accelerate the transition to EV manufacturing in India. Furthermore, there is a strong emphasis on localizing EV technology and enhancing manufacturing capabilities to support a sustainable automotive future. In addition to duty rationalization, manufacturers are advocating for ongoing consumer incentives and clear policy frameworks to encourage EV adoption. With previous initiatives like FAME and PM E-DRIVE nearing their end, the industry is pressing for assurance that support for EV uptake will continue. Infrastructure development also remains a critical concern. Industry leaders are calling for increased investment in charging infrastructure, as the current network remains inconsistent despite recent advancements. A robust public and private charging network is deemed essential for making EV ownership more accessible and instilling confidence in potential buyers. Moreover, the budget is expected to address the ease of doing business, focusing on local manufacturing and workforce skill enhancement to align with evolving technologies. A stable policy environment is viewed as essential for attracting long-term investments in the EV sector. Overall, the auto industry is hopeful that the upcoming budget will introduce duty cuts and targeted incentives aimed at advancing India’s electric mobility ambitions. These requests underscore the sector's belief that effective fiscal policies are integral to driving the widespread adoption of electric vehicles.