We congratulate the government on presenting a forward-looking and growth-oriented Union Budget 2025–26. The budget reaffirms the government’s strong commitment to strengthening India’s manufacturing sector and accelerating the transition to clean and sustainable mobility while bolstering India’s economic resilience.
The introduction of the National Manufacturing Mission and the emphasis on Clean Tech Manufacturing, including National Critical Minerals Mission, particularly for EV batteries, motors, controllers, and high-voltage transmission equipment, will provide a significant boost to ‘Make in India’ efforts. The rationalization of custom duties on key raw materials and the reduction of inverted duty structures will also enhance cost-effectiveness in domestic manufacturing. The duty exemption on capital goods for EV battery manufacturing is a welcome step toward accelerating India’s electric mobility transition.
Furthermore, adjustments in GST rates, incentives for electric vehicle adoption and import duties on components will reshape the industry’s landscape. Increased allocations for infrastructure development, particularly in roads and transportation, will directly fuel demand for commercial vehicles. Additionally, budgetary provisions for working capital support, technology upgradation funds, and easier credit access will play a crucial role in strengthening the MSME ecosystem, ensuring its long-term growth and sustainability.
At VECV, we remain committed to advancing sustainable mobility solutions and contributing to India’s vision of a self-reliant, cleaner, and more efficient transportation ecosystem. The budget outlines a plan for promoting sustainable transportation through integrated infrastructure development initiative. Overall, the Union Budget 2025 reflects a comprehensive approach to stimulate inclusive economic growth through targeted investments in critical sectors that are essential for India’s development trajectory.”
