From Batteries to Charging: What Industry Wants from Union Budget 2026

Ahead of the Union Budget 2026–27, India’s battery, electric vehicle (EV), and clean energy sectors are closely watching the government’s policy direction. Industry experts believe that the right policy reforms and financial incentives can strengthen these sectors and help India advance in global competitiveness.

Dr. Suresh D, Group CTO, Spark Minda said that EV industry awaits a Budget that powers not just vehicles, but a vision where clarity, incentives, and infrastructure drive India’s green revolution forward. Where, Clarity is the foundation. Without consistent, long-term policies, companies hesitate to commit capital and innovation. Clear direction from the government ensures that investments in technology, manufacturing, and supply chains are secure and future-ready.

Incentives are the accelerators. By combining subsidies, rationalized taxes, and strong R&D support, governments can make EVs affordable for the wider population while accelerating breakthroughs in battery innovation and sustainable mobility.

Infrastructure is the enabler. Charging networks, logistics support, and domestic supply chains are critical to ensure adoption spreads beyond urban centres and becomes truly nationwide.

This Budget must ignite confidence, catalyse innovation, and position India not just as a participant, but as a leader in the global EV revolution.

Vikram Handa, Managing Director of Epsilon Advanced Materials, said that as India enters the next phase of its energy transition, there are significant opportunities for better integration between cell manufacturers and material suppliers. He emphasized that targeted CAPEX subsidies for upstream battery materials such as anode and cathode are crucial to reduce the risk of large investments and to make India self-reliant. This will help build a strong and reliable ACC supply chain that is globally competitive and less dependent on a single country like China.

Gaurav Dolwani, Founder & CEO of LICO Materials, highlighted the need for robust policy support in India’s battery recycling ecosystem. He called for the expansion and better coordination of PLI and FAME schemes, and standardizing GST on batteries for Energy Storage Systems (ESS) and e-mobility from 18% to 5%. He added that a conducive regulatory and business framework is needed to enable seamless collaboration between recyclers, OEMs, and cell manufacturers. Clear guidelines on end-of-life battery traceability, long-term offtake assurance, and incentives for using recycled materials in new batteries will strengthen India’s circular battery economy and reduce dependence on imports.

Benny Parihar, MD & Founder of EVERTA, noted that adoption of EVs and charging infrastructure in India is accelerating. However, sustained long-term growth requires stable policies over several years. Manufacturing DC fast chargers is capital-intensive and needs long-term planning. He emphasized that the Budget should provide clarity on the future of the PM E-Drive scheme post-2026 and support domestic manufacturing through PLI or volume-linked incentive schemes for DC chargers, power modules, and high-voltage components. Additionally, priority sector lending, lower interest rates, and rationalized duties on non-localizable inputs will help strengthen domestic manufacturing.

Debmalya Sen, President of India Energy Storage Alliance (IESA), said that India’s clean energy sector has been growing rapidly, with solar capacity reaching 132 GW and total renewable capacity exceeding 250 GW by 2025. Initiatives like the PM Surya Ghar scheme and scaling domestic solar module production to 100 GW are strong indicators of progress. However, the real challenge now is building system-wide resilience, especially in grid integration, storage, and sustainability. He emphasized the need to promote local manufacturing of Battery Energy Storage Systems (BESS) to strengthen grid stability and enable further renewable energy deployment. Long-term financial incentives, clear tender visibility, and support for recycling infrastructure will help create a robust circular economy and reduce import dependency.

Sen further added that green financing, policy consistency, and predictable execution are essential to attract investment. Budget 2026 offers an opportunity to move beyond expansion and create a future-proof clean energy ecosystem that positions India as a global leader in storage, recycling, and sustainable manufacturing.

Akshay Shekhar, Founder & CEO, Kazam, said “The Union Budget must align India’s EV expansion with power-sector and urban-infrastructure readiness. Under FAME II’s ₹11,500 crore outlay (FY2019-24), over 16 lakh EVs were supported, including 14.3 lakh 2W, 1.64 lakh 3W, 22,500 4W and more than 5,000 e-buses, with the entire 3W allocation exhausted well before the scheme’s end- highlighting strong commercial adoption. Renewal of FAME II, alongside sustained Production Linked Incentives (PLI) for EV and battery manufacturing- total outlay ₹25,938 crore (FY24-28) with ₹2,300 crore disbursed so far- must be paired with higher allocations for public and residential charging to ensure infrastructure keeps pace with adoption.

Accelerating smart meter deployment under the Revamped Distribution Sector Scheme (RDS) and implementing a national Battery Aadhaar framework for traceability, safety, and circularity will enable smart charging, load management, and reliable grid integration. Clear policy on EV-ready charging in building bylaws, supported by large-scale electrician certification, is also critical for safe, standardised installations.

On the clean energy front, deeper integration of PM Surya Yojna with EV charging, along with state-level rules for peer-to-peer energy trading, vehicle-to-grid, and virtual power plants, can position EVs as active, distributed energy assets. Coordinated policy across mobility, power, and urban planning will be essential to unlock the full economic, climate, and grid-resilience benefits of India’s clean mobility transition

In conclusion, industry stakeholders agree that if Budget 2026–27 focuses on policy continuity, local manufacturing, infrastructure development, and financial support, India has the potential to establish global leadership in the battery, EV, and clean energy sectors.