Budget 2026-27: What Did India’s Auto Industry Think Of It

The Union Budget 2026-27 was announced on February 1, and customers and automakers were eagerly looking forward to key announcements that would make buying or manufacturing vehicles easier. With the budget announcement just months after the GST 2.0 reforms, automakers were looking forward to enhanced policy stability, incentives on EVs, and PLI schemes to steer up the sector. Did the budget meet the expectations of India’s auto industry? Here’s what automakers had to say.

Shailesh Chandra, President, SIAM and MD & CEO, Tata Motors Passenger Vehicles Ltd

“We welcome the Union Budget 2026–27, which continues to focus on long-term, sustained economic growth with a strong emphasis on manufacturing, infrastructure including freight corridors & waterways and fiscal prudence. The decision to raise the capital expenditure target to Rs 12.2 lakh crore for FY 2026-27 from Rs 11.2 lakh crore in the current year will provide a strong impetus to demand creation and industrial activity, including the automobile sector. Enhanced support for electronic components manufacturing, setting up dedicated corridors for mining and processing of rare earth, along with initiatives to establish high-tech tool rooms and supporting container manufacturing, will develop supply chain resilience and help in streamlining exports. The allocation of 4,000 e-buses for the Purvodaya States will accelerate the transition toward sustainable public mobility solutions. Continued exemption of Basic Customs Duty on Capital Goods used for manufacturing lithium-ion batteries, along with the extension of concessional duty benefits for lithium-ion cells and their parts used in manufacturing batteries for electric and hybrid vehicles for a further two years till March 2028, will enable creation of a robust EV ecosystem in the country.”

Also Read: Budget 2026-27: Customs Duty Exemption Extended on Lithium-Ion Cell Manufacturing

Dr. Anish Shah, Group CEO & MD, Mahindra Group

“We applaud the Government of India’s Union Budget 2026 presented today by Finance Minister Nirmala Sitharaman. This Budget focuses on enhancing India’s competitiveness in the world, takes meaningful steps towards atmanirbharta and enables a wider participation in the benefits of economic growth. The emphasis on frontier and strategic manufacturing sectors, including the launch of enhanced schemes such as Biopharma Shakti and the Semiconductor Mission (ISM 2.0), reflects a clear commitment to building global-scale manufacturing capabilities. Strengthening domestic value chains and reducing critical import dependencies will be key to India’s future industrial leadership. We particularly welcome the significant increase in capital expenditure to ₹12.2 lakh crore for FY27, which underscores an unambiguous policy focus on infrastructure, regional development and job creation across the country. This will play a pivotal role in crowding in private investment, enhancing productivity and supporting the growth of tier-2 and tier-3 cities as emerging economic hubs.

The proposal to establish a dedicated ₹10,000 crore SME growth fund and incentives for industry clusters is a positive step toward enabling future job creation, supporting enterprise scaling, and boosting competitiveness of small and medium businesses. Initiatives to promote critical minerals, rare earth corridors and enhanced electronics and capital goods manufacturing are forward-looking and essential for a resilient industrial ecosystem that can thrive amid global uncertainties. And, most importantly, the emphasis on sabka saath, sabka vikaas is commendable. The actions to ensure every community has access to resources and opportunities will enable robust and sustainable economic growth. Overall, Budget 2026 signals continuity in policy direction, a firm commitment to sustainable and inclusive growth, and efforts to unlock India’s economic potential at scale. We believe these measures can accelerate innovation, enhance value-added manufacturing and strengthen India’s standing in the world.”

Piyush Arora, Managing Director & CEO, Škoda Auto Volkswagen India

"We welcome the Union Budget 2026–27 for the clear direction it sets on India’s long-term economic priorities as the country progresses towards the Viksit Bharat 2047 vision. It sends a strong message of policy stability, which is essential for sustained manufacturing investments. The continued emphasis on manufacturing competitiveness and trade facilitation, including progress on the India–EU FTA, strengthens India’s position in global supply chains and reinforces its role as a key automotive manufacturing and export base. The focus on SME growth and the revival of legacy industrial clusters will further enhance the resilience and depth of India’s industrial and supplier ecosystem. At Škoda Auto Volkswagen India Private Limited, this aligns well with our ‘Make in India, for India and the world’ commitment as we advance our sustainable mobility roadmap and continue to deepen localisation and skilling across our ecosystem.”

Also Read: Budget 2026: What Was Overlooked For Auto Industry?

Santosh Iyer, MD & CEO, Mercedes-Benz India

“Budget's strong focus on infrastructural development, with addition of Rs 1 lakh crore in capex, is a step in right direction developing the country’s evolving mobility ecosystem. Better highways and improved intercity connectivity have historically driven luxury car demand in India. The fiscal prudence reflected in the 4.3% deficit target, combined with strong focus on exports, sends a strong signal of macroeconomic stability, which may lead to a less volatile currency. Overall, the emphasis of the budget is on strengthening ease of doing business, and the deferral of customs duty payments up to 30 days, can improve cash flow significantly. This budget primarily focuses more on long-term gains, rather than immediate ones.”

Stéphane Deblaise, CEO, Renault Group India

"The Union Budget 2026–27 sends a strong and reassuring signal of policy continuity and intent for India’s manufacturing-led growth. Anchored in the Kartavya pillars for Viksit Bharat, the Budget demonstrates a clear commitment to building resilience, competitiveness and technological depth across strategic sectors. The progression to India Semiconductor Mission 2.0, with its focus on equipment, materials, full-stack Indian IP and supply-chain strengthening, aligns closely with the evolving needs of the industry. The targeted push to reduce critical import dependencies, through initiatives on rare earth magnets and continued customs duty exemptions on capital goods for lithium-ion cells, creates confidence for deeper localisation and sustainable mobility. Supported by public capital expenditure of ₹12.2 lakh crore and enhanced logistics corridors, the Budget provides greater momentum to responsible growth of the Indian economy."

Hardeep Singh Brar, President & CEO - BMW Group India

“The Union Budget 2026–27 reflects a clear intent to balance fiscal consolidation with the need to sustain growth momentum. The reduced estimates for fiscal deficit reinforce assurance in India’s macro-economic stability and commitment to fiscal discipline. A declining debt-to-GDP ratio will gradually free up resources for priority sector expenditure. At the same time, an increase in capital expenditure will accelerate infrastructure development, improve road quality and enhance mobility ecosystems. The Government’s focus on logistics improvement, such as accelerating customs clearance of goods (via AEO programme) will make them available for manufacturing activity faster. Also, the reforms in tax compliances like longer validity of Advance Rulings in customs duty (from 3 to 5 years) will give more certainty to business operations. These long-term investments from the centre will have a direct multiplier effect on the auto market. Budget has reinforced the fundamentals that matter most to the auto segment - economic stability, policy predictability and sustained infrastructure development. Recent initiatives taken before the budget like GST reforms and conclusion of various FTA's are already very positive steps taken by the Government for auto sector. For premium customers, confidence is the biggest driver, and this Budget further strengthens that confidence while creating the right conditions for long-term, sustainable growth in mobility.”

Jyoti Malhotra, Managing Director, Volvo Car India

“As the automotive industry looks ahead to the upcoming Union Budget, continuity and clarity will be critical. Following the implementation of GST reforms, the sector stands at a pivotal inflection point, where sustained and predictable policy support can help accelerate recovery and stimulate long-term demand. Rationalisation of the duty structure, particularly for the rapidly growing electric vehicle (EV) segment along with well-calibrated incentives for global automobile manufacturers investing in sustainable mobility, would serve as strong catalysts for the industry. The government’s focus on expansion of charging infrastructure in the country will act as an impetus to green mobility. Such measures can not only strengthen India’s position as a progressive automotive market but also reinforce the country’s transition towards cleaner, safer and more sustainable transportation.”

Also Read: Budget 2026: Green Hydrogen Mission Allocation Unchanged at ₹600 Crore

Sudarshan Venu, Chairman, TVS Motor Company

"The Union Budget 2026 provides a strong and consistent policy framework for India’s emergence has a global powerhouse under the leadership of Prime Minister Narendra Modi. The sustained push on infrastructure, higher capital expenditure, and reforms aimed at easing business conditions will help in attracting private investment and strengthening supply-chain resilience. We welcome the focus on clean energy solutions, MSME growth, and technology-led inclusion - benefiting farmers, women in STEM, youth, and the differently abled. The focus on scaling manufacturing in strategic sectors, building domestic value chains for critical minerals and rare earths, and expanding semiconductor and advanced technology capabilities will be vital for the future of EVs, electronics, and next-generation mobility."

Balbir Singh Dhillon, Brand Director, Audi India

"The Union Budget’s strong emphasis on infrastructure and capital expenditure is a positive enabler for India’s mobility landscape. Improved highways and intercity connectivity, especially across Tier-II and Tier-III markets, are strengthening the ownership and usage ecosystem for luxury automobiles. The government’s focus on fiscal prudence, macroeconomic stability, and ease of doing business reinforces confidence for long-term investments in the automotive sector. Initiatives like the development of rare earth corridors and the advancement of ISM 2.0 under the India Semiconductor Mission are timely and critical. They signal a clear intent to build resilient domestic supply chains and a technology-driven manufacturing ecosystem that will support the future of automotive and electric mobility in India."

Dilip Chandak, Managing Director, Vega Helmets

"Budget 2026-27's exemption of TDS and income tax on MACT interest awards is a pragmatic, victim-centric reform that addresses a critical pain point in India's road accident ecosystem—where claims often drag for years, eroding real value through deductions and inflation. This ensures full payouts reach natural persons faster, reducing financial distress for families while nudging insurers toward timelier settlements, potentially lowering systemic costs. From Vega's vantage as a helmet leader producing millions annually, this pairs perfectly with MSME boosts and infra pushes to amplify prevention: imagine helmet compliance rising 20-30% via awareness campaigns tied to economic incentives, slashing accidents by thousands yearly and fueling sustainable growth in legacy sectors like ours. FM Sitharaman's vision aligns fiscal relief with safety – now, let's enforce it on the ground."

Madhumita Agrawal, Founder & CEO, Oben Electric

“The Union Budget’s focus on expanding the Rare Earth Permanent Magnet Scheme and building dedicated rare earth corridors is a positive step towards reducing import dependence for critical materials used in EV manufacturing. Rare earth magnets, which are key components in electric motors, benefit directly from this initiative, and strengthening capabilities across mining, processing and advanced manufacturing will create a more reliable domestic supply base. The India Semiconductor Mission 2.0 and the Electronics Components Manufacturing Scheme will help build domestic capabilities in semiconductors and other electronic components, strengthening the supply chain for critical EV systems and reducing dependence on imports. As electric motorcycle manufacturing scales in India, such measures are particularly relevant for manufacturers with end-to-end, in-house development and manufacturing capabilities, supporting localisation and long-term supply stability.”

Also Read: Budget 2026: Auto & Components Get Policy Continuity and Longer-Run Relief

Aravind Mani, CEO & Co-Founder, River Mobility

“The Budget reinforces India’s steady progress towards Viksit Bharat by putting long-term manufacturing strength and supply chain resilience at the centre of economic policy. We welcome the government’s focus on developing rare earth corridors across mineral-rich states, as access to critical minerals and domestic processing is essential for building a self-reliant EV ecosystem. The proposed cluster-based chemical parks are also a positive step, as stronger domestic chemical manufacturing will directly support batteries, components and advanced materials. Together, these measures reduce import dependence, support large-scale EV manufacturing and signal India’s intent to emerge as a global hub for next-generation mobility.”

Kunal Arya, Co-founder & MD at Zelio E Mobility

“India’s electric two-wheeler segment has gained strong momentum, and the Union Budget 2026–27 takes a step toward scaling it into a full industrial ecosystem. Focusing on rare earth magnets and dedicated corridors in mineral-rich states is crucial to secure the materials that power electric drivetrains. Reducing customs duty on capital goods for lithium-ion batteries will help lower costs and support local manufacturing. India Semiconductor Mission 2.0 and the enhanced Electronics Component Manufacturing Scheme will strengthen supply chains, promote full-stack Indian IP, and accelerate battery and component localisation. 

This is pleasing to see how the government focuses on MSMEs—through credit guarantee support of ₹10,000-crore SME Growth Fund, it will further empower companies like ours to expand capacity, innovate faster, and compete globally. For Zelio, these measures provide a clear and stable pathway to scale Make in India electric two-wheelers that are affordable, reliable, and designed for mass adoption across Tier II, Tier III, and emerging markets. As the ecosystem matures, further momentum can be unlocked through targeted PLI support for battery cells and motor controllers, along with rationalisation of GST on electric two-wheelers to enhance affordability and widen consumer access."

Nemin Vora, Chief Executive Officer - Odysse Electric

“We laud 6 steps government’s focus on the local manufacturing ecosystem for assisting the mobility ecosystem and empowering the middle-class purchasing power.  It's encouraging to see the government’s effort in promoting green mobility by incentivizing local EV component manufacturing. With more disposable income in the hands of consumers—particularly the middle class—purchasing power is set to rise, which will naturally accelerate the shift toward sustainable mobility. With enhanced credit guarantee cover for MSMEs and startups, particularly in focus sectors crucial for Atmanirbhar Bharat, the budget lays a strong foundation for sustained growth and economic resilience.”

Also Read: Budget 2026: India Semiconductor Mission 2.0 Launched With ₹1,000 Crore to Push Chip Manufacturing

Baba Kalyani, CMD , Bharat Forge Ltd

“I congratulate the Hon’ble Finance Minister on her ninth successive Budget, which strikes a careful balance between macroeconomic stability and sustained investment-led growth. The articulation of a multi-pronged growth framework and the three kartavyas reinforces the commitment to building a competitive, inclusive and future-ready economy. At a time of heightened geopolitical and supply-chain uncertainty, these measures are bound to strengthen India’s economic resilience and global positioning, sending a strong signal to both Global and Indian investors. Through this budget, the government’s bet on manufacturing is reinforced; special emphasis on modern infrastructure, high-speed rail corridors, healthcare and cities as engines of growth, is timely and strategic. The progression of the semiconductor programme to ISM 2.0 through ecosystem development, alongside the announcement of rare-earth corridors across eastern and southern India, will significantly strengthen domestic supply chains. Equally important is the focus on green competitiveness, with meaningful allocations for carbon capture and decarbonisation, aligning sustainability with industrial performance.

Aligned with the geo-strategic realities, the defence sector emerges as a key pillar of this Budget. With defence receiving the second-highest allocation with about 25% increase in the modernisation budget, the emphasis is firmly on upgrading platforms, systems and technologies, while improving procurement efficiency. The message to industry is clear: deepen long-term capability, technology and Aatmanirbharta or self-reliance. I laud Madam Minister’s special thrust on Information Technology Services for companies setting-up Data Centers and Cloud Services from India; the 22yr tax holiday for such investments is a well-thought initiative aimed at Global leadership in this segment. Finally, the focus on university-industry clusters and AI-led productivity will help India fully leverage its demographic dividend. Overall, the Budget provides industry the confidence to invest, innovate and partner in building a globally competitive Indian economy.”

Deepak Jain, Chairman, Lumax Group

“The Union Budget provides a stable macroeconomic foundation through its focus on capital expenditure and MSME support. The ₹4,000 crore enhancement to the Self Reliant India Fund and the government’s emphasis on creating ‘Champion MSMEs’ are particularly encouraging for the auto components supply chain. The auto industry will benefit from the broader push toward manufacturing and infrastructure development as it is expected to support demand growth. The targeted duty exemptions on capital goods for lithium-ion cells used in battery storage signal the government’s intent to strengthen India’s clean mobility and advanced manufacturing ecosystem. We look forward to the detailed Budget documents for greater clarity on customs duty rationalisation and any sector-specific measures."

Harinder Singh, Managing Director & CEO, Yokohama India

“The Union Budget’s continued emphasis on manufacturing depth, infrastructure expansion, critical mineral ecosystems and clean energy value chains sends a strong and progressive signal for India’s industrial future. Enhanced support for electronic components manufacturing, battery storage, lithium-ion cells and critical minerals creates long-term policy visibility for EV platform localisation, battery assembly and advanced power electronics manufacturing, thereby strengthening investment confidence across emerging mobility ecosystems. For the tyre industry and the broader automotive sector, sustained capital expenditure of ₹12.2 lakh crore, expansion of highways, freight corridors, ports and multimodal logistics networks will significantly improve supply chain resilience, logistics efficiency and last-mile connectivity. Improved infrastructure access across Tier-II and Tier-III markets further enhances market reach and demand potential. Additionally, customs duty rationalisation and exemptions on select capital goods and advanced components help improve cost competitiveness by lowering initial capex and operational costs for high-technology manufacturing investments in India. At Yokohama India, where we continue to expand our domestic production footprint with a strong focus on localisation, sustainability and high value-added products, this policy direction reinforces confidence to accelerate investments in capacity, technology and next-generation manufacturing aligned with India’s long-term growth trajectory. ”

Sidhartha Bhushan Khurana, Managing Director, Studds Accessories Ltd

The Union Budget 2026 provides a steady and pragmatic framework for India’s manufacturing transition. By scaling capital expenditure to ₹12.2 lakh crore and focusing on City Economic Regions, the government is effectively strengthening the infrastructure that drives consumption in Tier II and III cities—the primary growth engines for the two-wheeler industry. The ₹10,000 crore SME Growth Fund and the mandatory adoption of TReDS are critical structural shifts that will address long-standing liquidity and scaling hurdles within the MSME ecosystem. Similarly, the High-Powered ‘Education to Employment and Enterprise’ standing committee is a necessary step to align our talent pool with the evolving needs of high-tech manufacturing as we aim for a 10% global share by 2047. As an organization deeply committed to Road Safety, we see the government’s focus on ‘National Kartavya’ as a shared responsibility. This budget balances the need for resilience with a clear roadmap for capacity building, creating a constructive environment for Indian manufacturers to expand their footprint both domestically and globally.”

Sudhir Mehta, Founder and Chairman, EKA Mobility

“The Union Budget 2026 reinforces India’s resolute commitment to building a sustainable, future-ready mobility ecosystem, and places clean transportation firmly at the centre of the country’s development agenda. The Government’s plan to deploy 4,000 electric buses across multiple regions is a clear endorsement of public transport electrification as a scalable solution to rising urban congestion, emissions and mobility demand. Large public fleet adoption is often the tipping point for wider EV acceptance, and this move strengthens confidence across the electric mobility value chain. While these buses are part of mainstream public transport, their deployment across emerging connectivity and tourism circuits will also play a critical role in improving access to key destinations and regional hubs.

The Budget’s emphasis on transport-led growth through seven high-speed rail corridors, including key routes such as Hyderabad–Bengaluru and the strategically significant Mumbai–Pune railway corridor, along with dedicated freight corridors like Dankuni–Surat, reflects a broader shift towards cleaner and more efficient intercity and regional connectivity. These investments are closely aligned with the Government’s focus on boosting tourism by improving access to major economic centres, pilgrimage circuits and emerging travel destinations. Seamless, low-emission mobility is essential to making tourism more accessible, sustainable and resilient. Public capital expenditure rising to ₹12.2 lakh crore, complemented by the proposed Infrastructure Risk Guarantee Fund, further strengthens the investment environment for large-scale transport and EV infrastructure projects. Risk-mitigated financing is critical for accelerating deployment across commercial and mass mobility segments.

For EKA Mobility, this Budget provides a strong strategic foundation to expand electric vehicle offerings, integrate mass transit and smart mobility solutions, and support low-carbon transport networks across cities, industrial corridors and tourism hubs. Overall, the Budget presents a cohesive vision for inclusive, sustainable and future-ready mobility, aligned with India’s broader aspiration of a Viksit Bharat. In parallel, the Budget’s focus on inclusivity and empowerment, particularly for Divyangjan, resonates strongly with industry-led CSR initiatives aimed at enabling independent mobility and dignified living. Programmes such as the Divyang Sahara Yojana and Divyangjan Kaushal Yojana complement on-ground efforts by industry and civil society to improve access to assistive technologies and livelihood opportunities.”

Dr. Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries

“The Union Budget FY26–27 reinforces India’s commitment to manufacturing-led growth. The continued drive on capital expenditure, with infrastructure allocation exceeding ₹12 lakh crore, alongside fiscal consolidation at 4.3%, strikes a prudent balance between growth stimulus and macroeconomic stability. Enhanced support to the Self-Reliant India Fund will further strengthen the manufacturing and MSME ecosystem. For the automotive and tyre sectors, sustained investments in infrastructure and logistics will improve cost efficiencies and support demand momentum. The emphasis on tourism and extensive program of skilling the workforce will go a long way in generating employment. In the context of evolving global trade dynamics, continued focus on ease of doing business, technology adoption, and policy stability will be critical to attract investment and scale exports, strengthening long-term growth momentum.”

Arvind Chandra, Whole Time Director & CEO Tenneco India

“The Union Budget 2026–27 provides a strong growth-oriented platform for India’s auto components and manufacturing sectors, with a clear emphasis on competitiveness, infrastructure investment, and resilient supply chains. The allocation of ₹12.2 lakh crore towards infrastructure development, including highways, logistics, and urban infrastructure, will create a significant multiplier effect on vehicle demand, directly benefiting the auto components ecosystem. A strategic focus on policy stability and export competitiveness will further strengthen supply chains and generate employment across the value chain. Measures supporting clean mobility and sustainable technologies, including incentives for EV supply chains and battery manufacturing, are welcome steps toward a balanced transition. We believe this Budget will catalyse long-term investments in technology, localisation, and clean mobility solutions, reinforcing India’s position in advanced automotive engineering and emission control.”

Arnab Banerjee, MD & CEO, CEAT Ltd

“The Union Budget lays a strong foundation for sustained growth across India’s mobility and manufacturing ecosystem, with continued emphasis on infrastructure development, expansion of freight and logistics networks, and focused support for construction and equipment manufacturing directly translating into higher vehicle utilisation on roads and worksites. This, in turn, drives demand for tyres across commercial and passenger segments, while the push for Tier II and Tier III city growth further broadens mobility needs beyond metros, creating a durable demand environment and a positive long-term outlook for the automotive and tyre industry. Importantly, the focus on education infrastructure and skilling—including measures that encourage greater participation of women in technical and professional roles—will help industry build a more diverse, future-ready manufacturing workforce.”

Devndra Chawla, MD & CEO, GreenCell Mobility

“The Union Budget 2026–27 clearly signals that electric mobility and sustainable transport are no longer peripheral to India’s growth agenda, but central to it. The planned deployment of 4,000 electric buses across the North-East marks an important acceleration in public transport electrification, particularly for cities and tourism-intensive regions that are grappling with congestion, pollution and rising mobility demand. Large-scale adoption in public fleets is often the inflection point for electric mobility, and this push strengthens confidence across the ecosystem while also supporting cleaner, more accessible travel for residents and visitors alike.

The emphasis on new national waterways, dedicated freight corridors and high-speed rail connectivity reflects a broader shift towards cleaner, more efficient movement of people and goods. As highlighted in the Budget, these investments are also closely linked to boosting tourism by improving connectivity to pilgrimage circuits, heritage destinations and emerging travel hubs. Reduced dependence on high-emission road transport, combined with stronger last-mile connectivity, is essential for creating integrated and sustainable mobility networks that support both economic activity and tourism-led growth.

When viewed alongside initiatives such as City Economic Regions and the Seaplane VGF Scheme, the Budget points to a more balanced transport strategy that links urban centres, emerging regions and tourist destinations. These measures enhance regional accessibility while creating new opportunities for multimodal, low-carbon transport solutions. Equally relevant for the sector is the Infrastructure Risk Guarantee Fund, which can help unlock private capital for commercial transport and EV infrastructure. Access to risk-mitigated financing is critical for scaling electric fleets and charging networks at pace, especially across intercity routes and high-footfall travel corridors.

For GreenCell Mobility, these measures create a supportive environment to expand electric bus operations, integrate smart mobility solutions and partner with cities and states on cleaner mass transit systems. Overall, this Budget reinforces a long-term vision for low-carbon, inclusive and future-ready transportation, where sustainable mobility becomes a key enabler of economic growth, tourism development and environmental responsibility.”

Dheeraj Hinduja, Chairman, Ashok Leyland

“The Finance Minister has presented a pro-growth, development-focused Budget aligned with the Prime Minister’s vision of a competitive, resilient, and self-reliant India. Increased spending on Infrastructure, Manufacturing, and Defence—along with continued emphasis on roads, logistics, and construction—is expected to accelerate economic growth and drive demand in the commercial vehicle sector. The Budget also advances initiatives in AI, rare earths, and energy transition while supporting key sectors such as healthcare, education, agriculture, housing, and electrification. Overall, it sustains growth momentum and strengthens India’s long-term economic trajectory.”

Deepak Jain, Chairman, Lumax Group

“The Union Budget provides a stable macroeconomic foundation through its focus on capital expenditure and MSME support. The ₹4,000 crore enhancement to the Self Reliant India Fund and the government’s emphasis on creating ‘Champion MSMEs’ are particularly encouraging for the auto components supply chain. The auto industry will benefit the broader push toward manufacturing and infrastructure development as it is expected to support demand growth. The targeted duty exemptions on capital goods for lithium-ion cells used in battery storage signal the government’s intent to strengthen India’s clean mobility and advanced manufacturing ecosystem. We look forward to the detailed Budget documents for greater clarity on customs duty rationalisation and any sector-specific measures.

Narinder Mittal, President & Managing Director, CNH India

"The Union Budget 2026–27 signals that the next phase of India’s agricultural growth will be driven by productivity and technology-led modernization, with initiatives such as the AI-enabled Bharat-VISTAAR platform, investments in irrigation infrastructure, and support for high-value crops and allied sectors helping farmers improve incomes while accelerating adoption of modern farming practices across rural India. Furthermore, the Budget’s focus on customs duty rationalisation, ease of doing business, and strengthening manufacturing and exports is equally significant. Alongside the India–EU trade deal enabling faster flow of advanced global agricultural technologies while opening new export opportunities, creates strong momentum for farm modernization and further strengthens India’s position as a competitive manufacturing hub for agricultural equipment. At CNH, we look forward to translating this policy momentum into real on-ground impact by bringing globally proven, advanced farm solutions closer to Indian farmers."

Shalabh Chaturvedi, Managing Director, India & SAARC region, CASE Construction Equipment

“We strongly welcome the Union Budget 2026–27’s decisive push for infrastructure, reflected in the increase of public capital expenditure to ₹12.2 lakh crore. The announcement of the Scheme for Enhancement of Construction and Infrastructure Equipment is a landmark step for the industry. For CASE Construction, this reinforces the vision of manufacturing in India for an Aatmanirbhar Bharat by promoting domestic production of high value, technologically advanced equipment. The planned development of City Economic Regions, new freight corridors, and expansion of national waterways under the PM Gati Shakti programme will drive demand for advanced construction equipment. The Budget’s broader policy support for manufacturing and industrial ecosystems will help accelerate supply chain migration into India and create large scale employment opportunities. With a continued focus on ease of doing business and exports, this Budget lays a strong foundation for industrial growth aligned with the vision of Viksit Bharat."