India’s electric vehicle industry has welcomed the Union Budget 2025-26, citing exemptions on capital goods and improved credit access as critical for scaling operations. With a focus on MSME growth and infrastructure development, Finance Minister Nirmala Sitharaman’s budget lays out provisions to support EV manufacturing, technology adoption, and supply chain expansion. Experts say these measures, along with continued incentives under FAME and PLI, will drive investment and accelerate industry growth.
Read the Union budget reactions from the Electric Vehicles sector in detail:
Karan Dhillon, Co-Founder, Perpetuity Capital
The Union Budget 2025 has announced an exemption from Basic Customs Duty (BCD) on Cobalt powder, lithium-ion battery waste and scrap, Lead, Zinc, and 12 other critical minerals. This move is expected to lower the overall cost of batteries used in electric vehicles (EVs). However, it remains to be seen whether this cost-benefit will trickle down to the end users or EV buyers.
Niranjan Nayak, MD, Delta Electronics India
The Union Budget 2025-26 lays down a strong foundation for India to transition towards becoming a sustainable, technology-driven, and self-reliant economy. The emphasis of the government on green energy, EV infrastructure, AI-led innovation, and digital transformation closely resonates with Delta’s aim to deliver energy-efficient, smart solutions that power the future.
This would place India on further accelerated net-zero emission paths and spur technological leadership for the country simultaneously. Higher penetration of clean mobility will be facilitated through investments in modernising smart grids and EV charging infrastructure.
Delta is placed to help since it leads the market for an EV charging and power solution. The PLI incentives for R&D and manufacturing under the scheme will further cement India’s position as a world manufacturing hub.
Delta continues to utilize its prowess in industrial automation, power electronics, and smart infrastructure for contribution to the development of India. We are hopeful that together with industry stakeholders and policymakers, these budgetary allocations will take on a shape where the vision is turned into an actual path leading to a sustainable, digitally empowered, and future-ready India.
N.P Ramesh, COO & Co-Founder, Orb Energy
With the 2025 budget announcement, Finance Minister Nirmala Sitharaman has set a clear path for India’s clean tech revolution. The National Manufacturing Mission aims to accelerate domestic production of solar cells/panels, and EV storage batteries ensuring that India not only strengthens its ‘Make in India’ vision but also becomes a key player in global supply chains. The reduction of BCD on Lithium batteries is a very welcome step, as Storage goes along with the increased adoption of renewable energy.
Alongside this, the focus on Industry 4.0 opens up exciting opportunities for our youth to lead the charge in innovation, creating a sustainable and energy-efficient future for generations to come. This is more than just a step toward economic growth—it’s a bold move to make India a global hub for clean energy solutions, driving job creation, reducing dependence on imports, and ultimately contributing to India’s clean energy goals.
Aravind Mani, CEO & Co-Founder, River Mobility
The 2025 budget brings a strong push for electric vehicle manufacturing and MSME growth, both crucial for India’s automotive future. Exemptions on capital goods will help brands like ours scale faster and make EVs more accessible. The emphasis on digitization, technology adoption, and infrastructure—especially roads and transportation—will drive automotive demand.
For component manufacturers, exemptions on 35 additional capital goods, working capital support, technology upgradation funds, and easier credit access are vital for growth. Additionally, initiatives like FAME and PLI will shape investment decisions, while provisions for skill development and cluster initiatives will make EV adoption more viable.