STAGE SET FOR GLOBAL LEADERSHIP IN ELECTRIC MOBILITY

India's Budget 2026-27 lays the groundwork for sustainable electric mobility by strengthening supply chains, driving innovation, and positioning the country for global leadership in EVs

- Column by Narayan Subramaniam

THE UNION BUDGET 2026-27 has delivered a decisive message. India is not only committed to accelerating electric mobility but is also laying the foundations for long-term resilience in critical supply chains. In the EV industry, particularly among startups that are driving innovation through advanced technology development and are committed to research and development, this budget represents both continuity and a strategic inflection point.

Momentum in Electric Two-Wheelers: India's electric two-wheeler market recorded 1.18 million registrations in 2025, an 11 per cent year-on-year growth that underscores the country's strong momentum towards sustainable mobility. This achievement reflects the government's commitment to clean energy and the industry's ability to offer competitive products to that of conventional variants.

The extension of support through FAME-II subsidies was instrumental in driving adoption, especially in commuter e-scooters. Yet, as we move forward, the Union Budget 2026-27 has broadened the canvas- signalling that India's EV journey will be defined not by short-term incentives alone, but by structural investments in supply chains, technology, and infrastructure.