New Delhi — As India heads into the Union Budget 2026 announcement, leaders from manufacturing, automotive and mobility technology sectors have collectively called on policymakers to prioritise structural reforms that catalyse industrial growth, infrastructure expansion and the nation’s transition to low-carbon mobility. These pre-budget pitches reflect heightened urgency among industry stakeholders to align fiscal policy with emerging economic and environmental imperatives. Representatives from major associations in the automotive, commercial vehicle, construction equipment and clean tech arenas have outlined expectations that go beyond traditional tax adjustments. A key demand is stronger fiscal support for domestic manufacturing capacity — particularly in clean mobility, electric vehicle (EV) ecosystems, and allied supply chains — which are seen as engines for employment, urban mobility resilience and export competitiveness.
Industry analysts note that fostering deeper industrial infrastructure is crucial for India’s long-term competitiveness. Enhanced capital expenditure on transport corridors, logistics networks and manufacturing clusters can reduce systemic bottlenecks, improve supply-chain efficiency and support equitable regional development. Urban planners argue this is particularly vital for Tier-2 and Tier-3 cities, where integrated industrial and mobility hubs can unlock local economic opportunity and absorb rural-to-urban workforce flows. A recurring theme from pre-budget submissions is the strategic expansion of production-linked incentive (PLI) schemes. These programmes, which target specific sectors such as automotive components and electronics, are credited with driving domestic value addition and attracting global capital. Extending and enhancing such incentives — especially for EV technology, battery manufacturing and advanced materials — could help India reduce import dependence and anchor high-technology industrial jobs. Clean mobility advocates emphasise the intertwined nature of fiscal policy and climate goals. Investment in EV charging infrastructure, grid modernisation and low-emission public transport systems are seen as critical to meeting net-zero targets while sustaining urban growth. Industry representatives suggest that rationalising duties on EV components and integrating green energy supply chains into national manufacturing policy could accelerate adoption in both personal and commercial transport sectors.
Infrastructure experts also point to the need for coordinated fiscal support for digital and physical infrastructure. Modern logistics nodes, freight corridors and last-mile connectivity enhancements are expected to have multiplier effects, lowering costs for manufacturers, speeding up market access for producers and improving quality of life in urban and rural areas alike. Despite these broad calls, some observers caution that fiscal measures must be carefully calibrated to balance incentives with sustainable outcomes. Unchecked infrastructure spending without robust environmental safeguards could undermine climate resilience, while poorly targeted incentives may entrench inequalities. Urban planners advocate for budget allocations that integrate environmental impact assessments, gender-responsive urban design and inclusive skill development programmes.
As the government prepares to present its fiscal roadmap, stakeholders will be watching closely to see whether the 2026 budget responds substantively to these calls — translating pre-budget rhetoric into concrete measures that drive sustainable, inclusive industrial transformation and future-ready cities.
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