The Union Budget 2026-27, to be presented by Finance Minister Nirmala Sitharaman on Sunday, February 1, 2026, at 11:00 AM, arrives at a pivotal time for India’s economy. With sectors like electric mobility, deeptech startups, AI-driven platforms, electronics manufacturing, digital services, healthcare, fintech, geospatial tech, and food processing seeking targeted policy support, industry leaders are outlining priorities to drive sustainable growth, innovation, job creation, and global competitiveness.
Building on momentum from 2025 where EV sales hit record levels (over 2.3 million units, including ~1.28 million two-wheelers) experts emphasize structural reforms, localisation, infrastructure, and incentives aligned with long-term goals like Make in India and net-zero ambitions.
Here are the key expectations and recommendations from sector leaders ahead of the Budget.
Accelerating Electric Mobility and Two-Wheeler Electrification
India’s electric vehicle (EV) sector, led by two-wheelers, saw strong growth in 2025 but faces challenges like inverted GST structures, import dependence, and limited motorcycle penetration (where ~70% of the two-wheeler market lies but electrification lags).
Ms. Madhumita Agrawal, Founder & CEO of Oben Electric, stresses fixing tax disparities and targeting motorcycles:
“While finished EVs attract a 5% GST, the raw materials sourced to build these vehicles are taxed at 18%. This 13% disparity traps vital working capital… Aligning the GST on all EV components to a uniform 5% is essential… the next wave of adoption will be led by electric motorcycles… the budget should introduce targeted subsidies and demand incentives specifically for electric motorcycles.”
Oben Electric, an R&D-focused Bengaluru-based firm with in-house manufacturing and over 25 patents, pioneers LFP battery tech for safer, longer-range electric motorcycles.
Mr. Kunal Arya, Co-founder & MD of Zelio E Mobility, highlights localisation and infrastructure:
“The Union Budget 2026–27 should prioritise deeper localisation through component-specific PLI support for battery cells, controllers, and power electronics… Rationalising GST… priority-style, low-cost financing… A clear national charging roadmap, including a target of 50,000 public charging points by 2027…”
Zelio E Mobility offers stylish, high-mileage e-scooters with a nationwide dealer network.
Mr. Sameer Moidin, Founder & CEO of EVeium Smart Mobility, calls for full domestic value chains:
“The focus should be on Make in India electric two-wheelers… Incentives should drive battery localisation, affordable financing, and mass-scale production… sustained investment in robust, widely accessible charging infrastructure…”
EVeium emphasizes smart, sustainable commuting with eco-conscious designs.
These inputs underscore the need for tax alignment, PLI enhancements, financing, and charging networks to scale mass-market EV adoption.
Boosting Deeptech, Manufacturing, and Electronics Innovation
Ankit Kedia, Founder and Lead Investor at Capital-A, urges execution support for deeptech:
“The Union Budget must reinforce this execution ecosystem through shared testing and certification infrastructure, predictable regulatory pathways, and incentives aligned with longer gestation timelines…”
Mr. Shishir Gupta, Co-founder & CEO of Oakter, seeks design-led incentives:
“Expanding and refining PLI support for ODM-led manufacturing… targeted incentives for batteries, power electronics, IoT hardware… lowering the cost of manufacturing through stable GST structures…”
Oakter, an IIT Delhi alumni-led IoT brand, operates advanced factories for high-volume consumer electronics.
Advancing AI, Digital Platforms, and Services
Mr. Vikram Labhe, Founder & CEO of Melooha, focuses on applied AI:
“Policy emphasis on applied AI, scalable cloud infrastructure… Support for multilingual AI, vernacular computing… Incentives for AI-led SaaS innovation, digital skilling, and cross-border service exports…”
Melooha blends AI with astrology for actionable life guidance, serving millions globally.
Mr. Girish Hirde, Global Delivery Head at InfoVision, emphasizes IT/GCC fundamentals:
“Continued investment in secure, reliable digital and physical infrastructure… clear policy direction on AI adoption and workforce readiness…”
Mr. Akhil Nair, Founder and CEO of BigTrunk Communications, highlights MarTech:
“Allocations that support AI and ML research for marketing use cases… incentives for MSMEs to adopt MarTech tools… simpler compliance frameworks and clearer taxation structures for digital service exports.”
Strengthening Healthcare, Fintech, Geospatial, and Food Processing
Dr. Sheetal Jindal advocates for reproductive health:
“Targeted incentives for Assisted Reproductive Technologies (ART) like IVF… subsidies or tax relief for fertility treatments… enhanced funding for training and research…”
Mr. Mannuri Vamshi Krishna, Founder & CEO of SafeCredits, pushes digital credit:
“Encourage wider adoption of AI-driven risk management… promote paperless onboarding, automated KYC, real-time payment monitoring…”
Mr. Rahul Jain, Managing Director at Matrix Geo Solutions, seeks geospatial push:
“Wider adoption of LiDAR, GIS… Enhanced allocations for geospatial data infrastructure, streamlined drone regulations…”
Mr. Ekash Garg, Co-founder & CEO of Cravicious Foods, calls for cold-chain support:
“Stronger support for cold-chain infrastructure… Incentives for in-house manufacturing… Simplified compliance, GST rationalisation for frozen foods…”
As the Union Budget 2026 approaches on February 1, these diverse expert voices highlight interconnected priorities: resolving structural bottlenecks in EVs and manufacturing, fostering AI/digital innovation, and building resilient infrastructure across sectors. Forward-looking policies could unlock efficiencies, attract investments, create jobs, and position India as a global leader in sustainable, tech-driven growth. Stakeholders await announcements that align with national ambitions for self-reliance and inclusive development.
Last Updated on: Friday, January 23, 2026 7:13 pm by Economic Edge Team | Published by: Economic Edge Team on Friday, January 23, 2026 7:13 pm | News Categories: Business, News
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