The Union Budget 2025 has been hailed as a landmark move toward strengthening India’s position as a global hub for clean technology, innovation, and sustainable manufacturing. Industry leaders from the electric vehicle (EV) and mobility sectors have welcomed key policy announcements, including exemptions on Basic Customs Duty (BCD) for critical minerals, incentives for battery manufacturing, and increased financial support for MSMEs and startups. These reforms are expected to accelerate domestic production, enhance supply chain resilience, and drive widespread EV adoption. Here’s what industry stalwarts have to say about the budget’s impact on India’s clean-tech and mobility landscape.
Yogesh Bhatia, CEO and MD of LML
“The National Manufacturing Mission marks a transformative step for India’s industrial ambitions, with a sharp focus on clean-tech sectors like EV batteries, solar cells, and wind turbines. By exempting Basic Customs Duty on critical minerals and expanding the list of goods for EV and mobile battery manufacturing, the government has delivered a cost-cutting, value-adding masterstroke. These measures will bolster domestic production, enhance supply chain resilience, and position India as a global clean-tech hub.
The introduction of a voluntary declaration provision further underscores an industry-friendly approach, easing compliance and boosting the ease of doing business. For manufacturers, this is a golden opportunity to invest in sustainable technologies, reduce import dependency, and drive innovation.
With these reforms, India is not just strengthening its ‘Make in India’ initiative but also accelerating its journey towards sustainable manufacturing and global competitiveness. The clean-tech sector, in particular, stands to gain immensely, paving the way for a greener, self-reliant industrial future.”
Ms. Madhumita Agrawal, Founder & CEO of Oben Electric
“The Union Budget 2025 is well balanced, in terms of supporting India’s aspirations of emerging as a global hub for tech and innovation, while supporting MSMEs – the nation’s backbone, and creating more job opportunities for the nation’s youth. Investments in Clean Tech will certainly give a boost to the EV sector. Exemption of basic customs duty on Cobalt Powder and lithium-ion battery waste, and including 35 additional capital goods for EV manufacturing, will give a significant push to indigenous manufacturing. This will not only ensure easy availability crucial, also boosting domestic manufacturing and creating more job opportunities for the nation’s youth. At the same time, the budget also has key provisions for boosting the next wave of entrepreneurship in the nation, including the New Fund of Funds with a fresh contribution of INR 10,000 crore is a welcomed move, following the funding winter & dry spells that entrepreneurs had to endure in the previous year. Easing credit access to MSMEs is also a crucial move and will lead to better tech upgradation and more employment avenues for the nation’s youth. At Oben, we commend these key developments in the Union Budget 2025 and stay committed to helping India’s move towards sustainability and clean energy.”
Mr Maxson Lewis, Founder and CEO of Magenta Mobility
“The Union Budget 2025 takes a big leap toward strengthening India’s economy while addressing the real challenges faced by SMEs and gig workers. MSMEs have long been the backbone of our EV industry, and this budget recognizes their role by offering targeted incentives, skill development programs, and infrastructure support—giving them the tools they need to scale and innovate.
At the same time, the expansion of the E-Shram scheme is a much-needed win for gig workers, ensuring they have access to social security, fair wages, and better upskilling opportunities. In today’s digital-driven world, these measures go a long way in creating a more inclusive workforce.
What’s particularly exciting is the boost for manufacturing—especially in electronics and EV battery production—along with fresh investment incentives for startups. By focusing on clean energy, self-reliance, and innovation, this budget isn’t just about numbers. It’s about empowering businesses, workers, and entrepreneurs to build a more sustainable and globally competitive India”.
Mr. Rajesh Gupta, Founder & Director, Recyclekaro
“The Union Budget 2025 takes a decisive step towards strengthening India’s battery recycling and manufacturing ecosystem. The exemption of Basic Customs Duty (BCD) on critical minerals like cobalt, lithium-ion battery scrap, lead, and zinc will enhance domestic resource availability, reduce dependency on imports, and accelerate value addition within India. This move aligns with India’s vision for a circular economy, fostering investment in battery recycling and EV supply chains. The addition of new capital goods for EV and mobile battery manufacturing will further boost local production and job creation.”
Dinesh Arjun, Co-founder and CEO, Raptee.HV
“Innovation and technology are the cornerstones of every developed nation, and India’s vision for Viksit Bharat rightly prioritizes these pillars. The Finance Minister’s focus on nurturing and investing in innovation is a commendable step toward accelerating new technologies that will shape our future. The allocation of a Deep Tech Fund will further strengthen India’s industrial ecosystem, fostering a globally competitive, tech-driven economy.
A crucial boost to the EV industry comes with the exemption of Li-Ion batteries and other capital goods, which will significantly reduce battery costs and encourage further investment in domestic battery manufacturing. Given that batteries make up 30-40% of an EV’s cost, this move will make EVs more affordable and accessible to consumers, driving mass adoption across two-wheelers, three-wheelers, and four-wheelers alike. By addressing a fundamental cost barrier, this initiative lays a strong foundation for the future of electric mobility in India. We are confident that these strategic measures will have a lasting positive impact on the EV ecosystem in the months to come.”
Mr. Nikhil Khurana, MD & CEO, Folks Motor (P.) Ltd.
“The Union Budget’s emphasis on MSMEs and startups is a welcome move, acknowledging them as the second engine of growth for India. MSMEs play a crucial role in our economy, contributing to 45% of exports, and the introduction of customized credit cards for micro-enterprises will provide much-needed financial flexibility. At Folks Motor, we recognize that easy access to credit is a game-changer, especially in the EV industry, where small businesses are integral to the supply chain, charging infrastructure, and localized manufacturing.
The government’s additional ₹10,000 crore contribution to the Fund of Funds for Startups further strengthens India’s commitment to fostering entrepreneurship. As an xEV company, we see this as a step toward accelerating innovation in clean mobility, enabling startups to develop next-generation EV technology, battery solutions, and smart charging infrastructure.
India’s transition to sustainable transportation requires strong policy backing, and this budget has laid the foundation for inclusive growth. By empowering MSMEs and startups with financial support, the government is not just driving economic growth but also paving the way for a more robust EV ecosystem. At Folks Motor, we remain committed to driving India’s xEV future with sustainable and accessible mobility solutions.”
Mr. Samrath Singh Kochar, Founder and CEO, Trontek
“The Union Budget 2025 takes a forward-looking approach, emphasizing growth, innovation, and sustainability. By prioritizing infrastructure, technology, and clean energy, the government is laying the groundwork for long-term economic resilience. Enhanced support for MSMEs and a stronger push for green initiatives reflect a commitment to fostering self-reliance and competitiveness in a rapidly evolving global landscape.
A clear focus on strengthening domestic manufacturing, promoting technological advancements, and accelerating the energy transition signals India’s intent to lead in critical sectors. The budget also highlights the importance of sustainable development, ensuring that economic progress aligns with environmental responsibility. With these strategic initiatives, India is well-positioned to drive innovation, create new opportunities, and build a more resilient future.”
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