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

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026-27 in Parliament on Sunday, February 1, 2026 at 11 AM, in what will be her ninth consecutive Budget, with industry and markets closely watching how the government’s fiscal plans support sectors such as electric vehicles and green mobility.

Automakers are pushing for duty rationalisation, stronger incentives and infrastructure support as they look to accelerate India’s electric mobility transition.

EV policy focus central to auto sector budget wishlist

1. Duty rationalisation on EVs and EV components

The auto industry is urging the government to rationalise duties on electric vehicles and their components, including batteries and powertrain parts, to reduce costs and support the transition to EV manufacturing. Localisation of EV technology and deeper manufacturing focus are key asks, alongside sustained support for multiple green energy pathways in the automotive segment.

2. Clarity and continued incentives for EV adoption

Automakers are expecting continued consumer-led incentives and schemes to strengthen EV uptake. This includes demands for clear policy direction and sustained support so EV adoption does not stall as earlier programmes like FAME or PM E-DRIVE approach sunset timelines.

3. Infrastructure development support

Industry leaders have highlighted the need for greater support for charging infrastructure expansion, which remains uneven despite recent progress. Expanded public and private charging networks are seen as vital to make EV ownership more convenient and boost consumer confidence.

4. Ease of doing business and localisation push

According to sector expectations, the Budget should prioritise ease of doing business, deeper localisation of manufacturing, and workforce skill development in line with technological changes. A more predictable policy environment is considered crucial for long-term investments in EV manufacturing.

5. Broader duty cuts and incentives

Broadly, the auto industry is hoping that Budget 2026 will offer duty cuts on EVs and related components, combined with targeted incentives, to drive India’s electric mobility goals forward. These expectations reflect the sector’s view that fiscal measures will play a central role in scaling up EV adoption.