India is on the verge of a green revolution, and a nation-wide electric vehicle (EV) shift could be initiated with the Union Budget 2025-26.
Since the leaders of the nation are advocating for major changes, the budget which is about to be prepared has the potential to increase EV’s affordability, innovation, and infrastructure in the whole nation and this in turn will bring India closer to its goals of becoming a global EV leader.
A Nation Charged Up for Change
With Finance Minister Nirmala Sitharaman getting ready to make the federal budget announcement, stakeholders in the EV sector are excited. There is an appeal for every Indian to be able to afford sustainable mobility, which requires a transformation in policies that focuses on minimizing costs and overcoming manufacturing challenges.
From tax rebates to chargers, there is a strong ask for action – make EVs irresistible, accessible, and a superpower in reaching India’s net-zero ambitions.
The Roadmap to Affordability
The central ideas of the proposals come with a request for the Indian GST structure to be less intricate. The likes of Dinkar Agrawal from Oben Electric and Kunal Arya from ZELIO E Mobility are advocating for a single 5 percent GST on Electric Vehicles, parts, and charging as that would greatly enhance affordability and adoption rates.
Reducing GST on spare parts from 28% to 5% will cut production costs dramatically, asserts Arya, and those savings will flow straight to consumers.
From the look of things, the expectations continue increasing. In the opinion of Anshul Gupta from OPG Mobility, OPG mobility expects tier 2 and 3 towns to be EV hotspots because of electric two-wheeler and rickshaw subsidies.
The heart of India will become an energy powerhouse, Gupta asserts, given the new affordable options in mobility.
Infrastructure – Powering the Future
Visualize highways peppered with high-speed charging points, state-of-the-art technology cross-border battery manufacturing, and electric grids that facilitate the flow of electricity for smooth operations of EVs. This is the future that Raghav Arora (Statiq) and others are investing in.
The industry seeks a nationwide charging network, tax cuts on lithium-ion batteries (down from 18% to 5%), and PLI schemes to boost local battery production. Tech innovation isn’t a luxury, it’s the fuel for India’s EV journey, says Arora.
Domestic Manufacturing, The ‘Atmanirbhar’ Edge
To reduce reliance on imports, voices like Ishaan Parwanda (Trinity Touch) are urging PLI incentives for EV components. “Let’s make India a global EV parts hub,” he urges. Meanwhile, resolving the inverted GST structure on raw materials could free up capital for manufacturers, turbocharging homegrown innovation.
Why This Budget Could Be a Game-Changer?
The government has already made a good start with FAME, PLI-Auto schemes and PM E-DRIVE. Now, the industry seeks more aggressive undertakings with long-term subsidies, subsidized EV loans, and tax optimization. If these proposals are approved, analysts forecast a significant increase in the sales of EVs, reduced emissions, and a robust new business and employment creation ecosystem.
The Finish Line? India Takes The Next Step Towards A Greener Future
The anticipation around Budget Day is certainly noticeable. With the right policies, India could leap forward when it comes to EVs as they would pivot from being niche to the norm which would not only reduce pollution but oil imports also and place the country as a frontrunner in sustainability.
You know this is just not about cars, It’s about rewriting India’s growth story, one charged with innovation, inclusivity, and vision.
The journey towards a cleaner tomorrow begins now, India, So put on your seat belts.
