As India takes another step toward a sustainable future with the 2025-26 Union Budget, the Finance Minister’s focus on promoting clean-tech manufacturing and easing the cost pressures on electric vehicle (EV) production is a commendable move. Exempting critical minerals, such as lithium and lead, from customs duty will provide much-needed relief to the EV industry, supporting growth and reducing import dependency.
Additionally, the inclusion of 35 new capital equipment items for lithium-ion battery manufacturing in the exempted list is a strategic move to strengthen domestic capabilities. The commitment to developing a comprehensive ecosystem for solar photovoltaic cells, EV batteries, and other clean technologies signals long-term growth potential. However, despite these positive initiatives, the absence of concrete measures to support long-term subsidies for EVs and a reduction in GST on spare parts remains a missed opportunity for accelerating mass adoption and reducing production costs. These steps are vital for achieving the ambitious growth targets for India’s electric mobility sector. – Kunal Arya, Co-founder & Managing Director at ZELIO E Mobility Ltd.