India’s Union Budget 2026-27, presented, prioritizes electric mobility and clean technology as central pillars of future economic growth. The Finance Ministry’s announcements signal a broad roadmap for electrification, domestic manufacturing, critical material supply chains, and renewable energy integration. These measures aim to strengthen the country’s clean mobility ecosystem while boosting industrial capacities across sectors.
A major focus of the budget is on public transport electrification and charging infrastructure. The government has earmarked plans for deploying thousands of electric buses and setting up tens of thousands of EV charging stations nationwide, supporting both city-level and intercity mobility transitions. This push is expected to enhance EV adoption and reduce urban air pollution.
To strengthen domestic EV manufacturing, the budget proposes facilitation groups and incentives for local production of key components, including batteries, power electronics, and related hardware. By reducing import dependence and supporting indigenous supply chains, the government hopes to create a more resilient and competitive EV industry in India.
The policy also places significant emphasis on critical minerals and battery ecosystems. Measures such as customs duty exemptions on capital goods for processing critical minerals, extended duty benefits for lithium battery manufacturing equipment, and the creation of Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu are aimed at securing raw materials essential for EV batteries and clean energy technologies.
On the demand side, the budget allocates ₹1,500 crore for the PM E-Drive Scheme and extends its tenure until March 2028, ensuring ongoing incentives for electric vehicle buyers. These provisions build on past initiatives — like the FAME programme — and are expected to sustain momentum in EV sales and adoption.
Beyond EVs, the budget also supports the broader clean tech and renewable energy agenda through targeted allocations and strategic incentives. Provisions for bio-fuels, digital tools for sustainability, and expanded Production Linked Incentives (PLI) for auto and hydrogen technologies further reflect the government’s intent to position India as a leader in environmentally sustainable industry and innovation.
