New Delhi, 24th January 2026 : Corporate India has issued its pre-Budget 2026-27 verdict to North Block: do not fix what isn’t broken. Extend electric vehicle subsidies, stabilise supply chain costs, and invest in infrastructure to cement 7%+ growth as private investment awakens from its long slumber.
FICCI’s pre-budget survey reveals optimism: nearly 80% of executives see clear skies ahead, with half expecting 7-8% GDP growth next fiscal year. The unified request: policy continuity over headline-grabbing experiments, especially as global trade tensions and capital caution worsen.
EVs: Scale Hinges on Policy Signals
Automakers sound alarms on incentive cliffs. “The Union Budget should extend PM E-Drive subsidies to fleet EVs, which typically clock four to five times the daily usage of personal cars,” said Hemal Thakkar, Director, Crisil Intelligence. “Higher utilisation delivers faster emissions reduction and stronger payback economics.”
Piyush Arora, Managing Director and CEO, Skoda Auto Volkswagen India, framed it post-GST 2.0: “Sustained support for domestic manufacturing, higher allocations for road and transport infrastructure, and rationalisation of the inverted duty structure for EVs would strengthen localisation and competitiveness.” Household income boosts, he added, would lock in demand momentum.
Domestic champions agree. Ajinkya Firodia, Vice Chairman and Managing Director, Kinetic Watts & Volts Ltd, hailed PM E-Drive’s impact but warned, “Premature withdrawal of incentives such as PM E-Drive could slow adoption just as volumes begin to scale, particularly in mass and commercial segments.”
The auto industry’s center of gravity has shifted. Informs Dr. Uday Narang, Founder and Chairman of Omega Seiki Mobility, who described 2025 as a consolidation year: “The market has moved from exuberance to discipline, where scale, unit economics and sustainability matter more than announcements.” He sees 2026 growth in electric three-wheelers and 1-1.5 tonne small commercial vehicles for intra-city logistics—not broad electrification.
Components: Raw Material Pain Meets Localisation Bets
Component makers face a cost crunch. Harinder Singh, Managing Director and CEO, Yokohama India Pvt. Ltd., pinpointed natural rubber volatility—India imports much of its needs: “Duty rationalisation on critical raw materials would meaningfully improve cost efficiency and strengthen the global competitiveness of Indian tyre manufacturers.”
Yokohama’s response—localizing higher-inch tyres and expanding at Visakhapatnam—needs Budget backing. “For India to emerge as a global hub for premium tyres, the Budget must deliver on three critical fronts: continued infrastructure capex, enhanced export facilitation including duty drawbacks and logistics support, and stable trade policies on raw materials that provide cost predictability,” Singh said.
Services Step Up, Recycling Goes Strategic
Mobility services want budget elevation. Rajesh Loomba, Chairman and Managing Director, ECOS (India) Mobility & Hospitality Ltd, positioned organised corporate fleets as productivity linchpins amid hybrid work: “Policy support that nudges companies away from unorganised transport towards technology-led, compliant mobility solutions—alongside targeted incentives for EV adoption in corporate fleets—could deliver faster emissions reduction per rupee of subsidy, while improving safety and reliability.”
Recyclers eye critical minerals security. Shubham Vishvakarma, Founder, Metastable Materials, pitched EPR evolution: “Budget 2026 offers an opportunity to strengthen battery recycling by differentiating between basic compliance and deeper, end-to-end recycling outcomes…
Recognising higher-quality R3 and R4 recycling and supporting downstream industries that convert secondary metals into battery precursors could turn recycling into a dependable domestic source of critical materials.”
Nikunj Aggarwal, Promoter and Whole-time Director, Ardee Industries Ltd, highlighted lead’s maturity—85-90% recycled: “Budgetary support for environmentally responsible recycling, rationalisation of indirect taxes and easier access to long-term capital would help organised players scale and strengthen India’s circular economy credentials.”
The North Block Playbook
The through line cuts across sectors: continuity trumps disruption. Extend EV tailwinds like PM E-Drive, steady inputs from rubber to rare earths, fortify exports via RoDTEP and SEZ tweaks, and sustain infra capex—all while hitting the 4.4% fiscal deficit. For corporate India, Budget 2026 isn’t about moonshots or U-turns. It’s about extending the runway as momentum builds—and private capex finally lands.
