TL;DR
The Union Budget 2026 is poised to introduce new policies and incentives to boost India's domestic EV manufacturing and R&D, reducing import dependence.
The upcoming Union Budget 2026 is expected to introduce a refined set of fiscal and policy measures aimed at accelerating the adoption of electric vehicles (EVs) across India. Experts from Deloitte India indicate a strong focus on bolstering domestic manufacturing capabilities and attracting further investments into the clean mobility ecosystem.
These anticipated initiatives include a potential reworking of the Production-Linked Incentive (PLI) scheme for EVs and advanced automotive components. Additionally, selective tax benefits for research and development (R&D) and capital goods manufacturing are expected to be announced to enhance the sector's scale and global competitiveness. This strategic push aims to reduce India's reliance on imported technologies, promote indigenous development, and curb crude oil imports, leading to significant foreign exchange savings.
