The Union Budget 2025-26 has been widely welcomed by industry leaders, particularly for its transformative impact on the electric mobility and start-up ecosystems. Key highlights include the exemption of basic customs duty (BCD) on 35 capital goods critical for EV battery manufacturing and tax exemptions on essential materials like lithium and cobalt, significantly lowering production costs and promoting local supply chains.
The budget also emphasised boosting the MSME sector through increased credit access and skill development, alongside measures supporting startups, gig workers and cleantech manufacturing. Investments in infrastructure, public-private partnerships and tax relief for the middle class are expected to stimulate consumer spending and economic growth.
Overall, the budget is seen as a strong step toward making India a global leader in sustainable mobility, innovation and self-reliant manufacturing.
Partner and Automotive Tax Leader at EY India Saurabh Agarwal noted, “The proposed income tax cuts could boost the middle class's spending power, potentially increasing demand for two-wheelers, three-wheelers, and small cars. Further, the government's commitment to fostering a sustainable automotive ecosystem is clearly demonstrated through its strategic initiatives, which are poised to deliver substantial benefits to the EV industry. The budget astutely emphasizes the complete exemption of Basic Customs Duty (BCD) on cobalt powder and waste, scrap of lithium-ion battery, lead, zinc, zirconium, copper, etc. These pivotal measures are designed to ensure a reliable domestic supply of essential critical minerals for manufacturing and to stimulate job creation across India.”
The Central Government has significantly increased budgetary allocations with PME E-Drive receiving INR 40 billion, auto PLI being bolstered by INR 22.18 billion and advanced chemistry cell PLI benefiting from an infusion of INR 1.55 billion. 
Commenting on the newly introduced budget, Mercedes-Benz India Managing Director Santosh Iyer said, “India has long been regarded as a niche garden with high fences; however, this budget is expected not only to enrich the garden by stimulating consumption and strengthening MSME sector, but also lowering the fences through tariff rationalisation and adoption of international practices on transfer pricing, with a clear commitment to enhanced global trade integration. This will send a strong positive signal to the industry, reinforcing confidence in the ‘India Growth Story’, paving the way for sustained investment and future expansion. The announcement of setting up of National Manufacturing Mission’s for clean technology manufacturing and support to domestic EV battery manufacturing is a positive step towards strengthening EV ecosystem. We also welcome the setting up of a high-level committee to evaluate regulatory reforms which will enhance ease of doing business in long term.”
Volkswagen India Brand Director Ashish Gupta, averred, “The Union Budget presents a forward-thinking roadmap for strengthening India’s manufacturing ecosystem with a clear emphasis on clean technology, skill development and infrastructure growth. By prioritizing these areas, along with manufacturing, India is advancing toward a circular economy—where investments, innovation, and sustainable practices drive long-term growth. Infrastructure growth through public-private partnerships and capital expenditure incentives will pave the way for India to become a globally competitive manufacturing hub.” 
Commercial vehicle players have also lauded the budget. Ashok Leyland Executive Chairman Dheeraj Hinduja noted, “The finance minister has presented a clear, growth-driven budget that aligns with the Prime Minister’s vision of fostering a competitive and resilient India with inclusive growth by investing in people, economy and innovation. Additionally, the government's strong commitment to green mobility is expected to create new avenues for innovation and growth across the country.”
Daimler India Commercial Vehicles Managing Director Satyakam Arya iterated, “The Union Budget 2025-26 will be a game changer for India and the mobility sector, helping us become a global leader in EV manufacturing and sustainable transportation. The emphasis on localising battery production will create technological advancements and generate more jobs. Also, with mining identified as one of the six domain areas for transformative reforms and the introduction of the State Mining Index, we see major growth potential for the sector in the coming years.”
EKA Mobility Chairman Sudhir Mehta said, “These different programmes demonstrate a strong commitment to sustainability, innovation and greater industrial competitiveness, setting the framework for transformative progress in a variety of critical sectors. The nation's energy revolution will be dependent on funding for small modular reactors and the government's target of 100 gigawatts of nuclear power by 2047. Long-term growth can be solidified by financial agreements that allow governments to expand their borrowing capacity, as well as indirect taxation initiatives targeted at increasing domestic value creation.” 
Two-wheeler industry
In a move to avoid protectionist signals, the government has reduced import duties on high-end motorcycles. This decision aligns with India's commitment to lowering trade barriers and could influence the premium motorcycle segment.
With electric mobility remaining the focus point of the automotive sector, the budget has made pivotal efforts for bolstering manufacturing. Drawing on that, companies operating in the EV two-wheeler space has welcomed the developments with open arms. 
Kolkata-based Motovolt Mobility Founder Tushar Choudhary said, “"The recent budget has delivered a promising outlook for India’s electric vehicle industry, especially with the reduction in BCD on capital goods related to EV manufacturing. This move will help lower production costs, making EVs more affordable for consumers and encouraging higher sales. Aligned with the National Manufacturing Mission, the budget’s focus on rationalising customs tariffs signals the government's intent to localize high-value production and reduce dependency on imports. Additionally, the exemption on critical minerals like lithium is a significant step toward easing the supply of vital components for EV batteries, further lowering costs and boosting domestic manufacturing. Efforts to localize EV components like batteries, motors and controllers will help reduce upfront costs which would further strengthen India’s EV Ecosystem giving the EV sector the ability to penetrate the Indian markets.”
Chennai-based high performance EV two-wheeler manufacturer Raptee HV’s Co-founder Dinesh Arjun said, “The Finance Minister’s focus on nurturing and investing in innovation is a commendable step toward accelerating new technologies that will shape our future. The allocation of a Deep Tech Fund will further strengthen India’s industrial ecosystem, fostering a globally competitive, tech-driven economy.”
Drawing on the same lines, Revamp Moto Chief Executive Officer Pritesh Mahajan said, “"The National Manufacturing Mission’s support for clean tech manufacturing is a game-changer for India's sustainable future. I firmly believe that this initiative will accelerate the growth of domestic EV battery and solar panel production, reducing our reliance on imports while strengthening India's position as a global leader in green technology. The additional INR 100 billion investment underscores the government’s commitment to fostering innovation, job creation and energy security.”
Welcoming the budget, Odysse Electric Founder Nemin Vora said, “We appreciate the Union Budget 2025, which underscores the government's commitment to fostering economic growth and empowering citizens. The adoption of progressive policies, particularly within the existing tax framework, is a key step in enhancing disposable income and driving consumer spending. This decision will significantly impact consumer-driven sectors, especially the two-wheeler industry. With more disposable income in the hands of consumers—particularly the middle class—purchasing power is set to rise. As a result, more individuals will be encouraged to invest in personal mobility solutions like two-wheelers.”
Associates talk
The boost towards electric mobility is also poised to impact the entire ecosystem. DriveX Founder Narain Karthikeyan noted, “The 2025 Budget is a strong step towards inclusive economic growth, bringing significant benefits across all sections of society. The increase in MSME turnover limits, along with enhanced credit access and intensive skill-development programmes will fuel entrepreneurship, business expansion and youth employment. We also welcome the government’s recognition of the gig economy, with steps to regularise support for gig workers and improve their access to credit facilities. With enhanced credit guarantee cover for MSMEs and startups, particularly in focus sectors crucial for Atmanirbhar Bharat, the budget lays a strong foundation for sustained growth and economic resilience.”
Commenting on the same lines, Taabi Mobility Limited Chief Executive Officer Pali Tripathi said, “The transformation of India Post into a large-scale logistics network, along with greater accessibility to PM Gati Shakti data for the private sector, will significantly enhance connectivity, particularly in hinterland regions. These initiatives will drive smarter freight management, optimise last-mile delivery, and make transportation more seamless and sustainable.”
On the aggregator front Rapido Chief Financial Officer Vivek Krishna said, “The Union Budget 2025-26 has proposed a review of both financial and non-financial sector regulations that are expected to help businesses perform better with lesser compliances. It reflects a bold vision for Viksit Bharat, one that empowers the gig economy, promotes sustainable mobility, and catalyses digital innovation. We welcome the social security scheme and healthcare support announced for gig workers. The e-shram portal registration and the PM Jan Arogya Yojana will be a game-changer in prioritising the well-being of gig workers, including our captains. It’s also encouraging to see the government’s effort in promoting green mobility by incentivising local EV component manufacturing.” 
Alluding to how the manufacturing push will bolster the electric mobility segment, Kinetic Engineering Managing Director Ajinkya Firodia said, “These steps noted in budget will significantly enhance India’s position as a global hub for electric mobility and clean energy technologies. In addition, the focus on expanding charging infrastructure, incentivising electric buses for public transport and ramping up domestic battery production marks a decisive move in India’s EV revolution. The continued subsidies under the FAME scheme will make EVs more affordable and accessible to consumers. This strong policy push not only paves the way for rapid adoption of EVs but will also create jobs, reduce dependence on fossil fuels and position India as a global leader in sustainable transportation.”
Drawing on the same lines, Tata Technologies Managing Director Warren Harris said, “The establishment of five National Centres of Excellence for Skilling is a pivotal move in building a future-ready workforce. This initiative resonates with our commitment to engineering a better future for India's youth through investment in in-demand training programs across Industry 4.0, IoT, and advanced manufacturing and collaborating with state governments to upgrade ITIs into technology hubs.”
TapFin Co-founder Aditya Singh said, “The budget’s emphasis on cleantech manufacturing, including incentives for electric vehicle batteries and the additional 10 GW support for grid-scale batteries, signals a significant shift for India’s electric mobility sector. Strengthening domestic production will foster innovation, reduce dependence on imports, and open new growth opportunities.”

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Tejas Cargo has added a Blue Energy electric heavy-duty trucks to its fleet. The e-trucks will cater to the needs of Dalmia Cement logistics requirements with an eye on reducing the carbon footprint. The deployment underlines the growing need of various industrial sectors such as cement, e-commerce etc. to reduce transportation-related emissions and build a more sustainable supply chain.
As businesses across different industrial sectors look beyond their manufacturing operations to reduce emissions, freight transportation is visited in terms of how it can contribute positively to Scope 3 norms. It makes an important area for action. 
This association between Blue Energy Motors and Tejas Cargo marks a new arrangement that is emerging in the logistics space where vehicle OEMs, logistics providers and end customers look at a sustainable and carbon footprint reducing means to transport the produce. To build an efficient supply chain that is robust and risk averse for the various shifts that are taking place. 
"The logistics sector is undergoing a significant transformation, and sustainable transportation will play a defining role in its future. We are pleased to deploy Blue Energy Motors' electric heavy-duty truck for Dalmia Cement's operations and look forward to contributing to the adoption of cleaner and more efficient freight solutions across the industry," said hander Bindal, Chairman & Managing Director, Tejas Cargo India Limited. 
Anand Mimani, CEO – EV & New Energy Business, Blue Energy Motors, said, "As India accelerates its transition towards a lower-carbon future, decarbonizing freight transportation will be critical to achieving meaningful emissions reductions. Electric heavy-duty trucks are increasingly proving their ability to deliver the performance, reliability and economics required for commercial operations. This deployment is a strong example of how clean mobility solutions can help industries reduce transportation-related emissions while advancing their broader sustainability ambitions."
 

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The Association of Indian Forging Industry (AIFI), the apex body of the Indian forging sector, hosted its 2nd Annual Conference on ‘New Development Trends – Impact on Forging Industry’. The event gathered leading stakeholders to discuss the evolving business environment, the China Plus One opportunity, technology and automation, productivity, manpower, rising input costs and the need for greater resilience and competitiveness.

Discussions stressed that the industry stands at a pivotal moment to strengthen its place in global value chains as companies diversify supply sources. However, it must move beyond traditional manufacturing models by investing in technology, automation, engineering, R&D, skilled manpower, productivity and sustainability. The consensus was that while India has the base, talent and market opportunity, forging firms must build capability to manage uncertainty and deliver higher-value solutions.

Chief Guest Thomas Dose, Managing Director, BMW Group Plant Chennai, highlighted India’s growing global relevance under the China Plus One strategy. He noted that geopolitical turbulence and single-supplier risks are pushing global companies to diversify, giving India a strong chance to become the preferred destination, with customers seeking greater engineering and end-to-end responsibility.

Sunil Javalekar, Chairman, Western Region, AIFI & CEO, S. B. Forgetech Pvt. Ltd., gave the welcome address. Yogesh Thakar, Executive Director, PwC, presented ‘Indian Forging Industry – Next Global Edge’. The memento presentation and vote of thanks were delivered by S Ravishankar, Vice President, AIFI & MD, Super Auto Forge Pvt. Ltd.

A panel on ‘Managing Uncertainty / Challenges to Capitalize on Demand Surge’ was moderated by S Ravishankar, with Vidyashankar Krishnan, CMD, M.M. Forgings Ltd.; Vikas Bajaj, MD, Bajaj Motors Ltd. and Sahil Jain, CEO, Hirschvogel Components India Private Limited. Discussions covered GST, manpower, automation, technology upgrades, investments, training, contingency planning, R&D, productivity, demand management and rising input costs.

The conference reinforced the industry’s significant opportunity as global supply chains evolve. AIFI continues to unite stakeholders, facilitate knowledge exchange and represent the forging fraternity, with a renewed commitment to competitiveness and growth in domestic and global markets.

Addressing the gathering, Yash Munot, President, AIFI & CEO, Varsha Forgings Pvt. Ltd., said, “The Indian forging industry is at an important juncture, with global supply-chain realignments creating significant opportunities for India. At the same time, we must remain prepared to navigate geopolitical uncertainty, rising input costs, technology disruption and changing customer requirements. Our focus must be on increasing productivity, accelerating technology adoption, developing our people and strengthening innovation and sustainability. The opportunity before the Indian forging industry is significant, but we must build the capabilities and competitiveness required to become a stronger and more valuable partner to global customers.”

Thomas Dose, Managing Director, BMW Group Plant Chennai, said, “We believe India should be the Plus One. India has engineering talent, a large market and a very capable forging industry. But China Plus One is not only about supply; we want to see much more partnership from India. Customers are looking for capable partners who can take responsibility, contribute to engineering and development and become part of the development process. India is no longer just a supply chain; Indian companies need to be part of our development. The challenge is to connect the capabilities that are already there, and AIFI has a major role to play in this.”

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Powered by JK Tyre, the Indian Racing Festival 2026 got off to a thrilling start at the Kari Motor Speedway (KMS) in Coimbatore, recently, with the opening round of the F4 Indian Championship delivering three action-packed races and a closely contested battle for the top honours. 
Aris Kyriakou emerged as the standout performer of the weekend, combining two runner-up finishes with a Race 3 victory to finish Round 1 with a dominant display.
With the opening round producing seven different drivers on the podium across the three races, the championship has already underlined the depth of competition on the grid. The F4 Indian Championship will now remain at Kari Motor Speedway for Round 2, giving the drivers another opportunity to challenge for crucial championship points at the same venue before the six-round season moves on to its other racing destinations.
South African Luviwe Sambudla stole the spotlight as the opener didn't unfold the way the grid sheet suggested it might. Sambudla, lining up eighth for Goa Aces JA Racing, tore through traffic almost immediately and had himself in podium contention within the first four opening laps in the first battle.
A mid-race safety car briefly closed up the field and threatened to undo his hard work, but it barely slowed him down as he crossed the line first in 31 minutes and 05.808 seconds, edging Kyriakou by 2.245 seconds, with pole-sitter Aaron Mehta rounding out the podium in third.
Before any of that unfolded, though, it was Mehta who'd already made headlines. The fifteen-year-old Singaporean, racing for Kolkata Royal Tigers, put in a lap of 1:05.652 to become the youngest driver ever to take pole in this championship's history. He couldn't quite hold that pace deep into the race, dropping to third as his tyres wore thin, but for a debutant barely out of his mid-teens, a podium finish is nothing to sniff at.
 
Aryan Narola's pole-to-flag drive made him the second-youngest race winner in series history
 Starting from pole in Race 2, Goa Aces JA Racing’s Aryan Narola fended off constant pressure from Kyriakou across the full 26-lap distance on the second day of the championship, eventually taking the flag just 0.624 seconds clear. Aris Kyriakou and Swarnav Das completed the podium behind them. The result makes Narola the second-youngest winner in the championship's history, a milestone which will be talked about in the lead-up to Round Two.
 
Race 3 belonged to Aris Kyriakou
Starting from pole for the third race running, Kyriakou didn't have things all his own way. He crossed the line first, but not before fending off relentless pressure from Mahlori Mabunda, who spent much of the race glued to his gearbox. Third went to Mehta, while Sambudla, the weekend's Race 1 winner, could only manage fourth this time round.
Mabunda displayed the pace to challenge for the win, but spent lap after lap fighting the effects of dirty air, the turbulent, disrupted airflow that trails a car ahead and robs the chasing driver of downforce through the corners.
Further back, the race delivered its share of chaos too. With the laps winding down, the leaders began lapping the rest of the field, sweeping up everyone from fourth to fourteenth during the final 90 seconds. Amid that scramble, Ntiyiso Mabunda came to a halt on track on the last lap, forcing race control to throw a yellow flag. The timing worked out well for Mehta, who'd been running fourth behind Kyriakou and the two South Africans, but Mabunda's misfortune opened the door, and he grabbed third as a result.
Round 1 threw up seven different names on the rostrum across its three races, but it's Kyriakou's name that stands tallest heading into the next stop. With the series set to return to the very same venue for its second round, all eyes will be on whether he can carry this form forward, or whether the chasing pack finally finds a way past.
 

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Thirty emerging technology fields will drive global economic growth over the next 15 years, with their total market value projected to expand from EUR 2.5 trillion to more than EUR 20 trillion by 2040 says a report by global consulting firm Roland Berger.

The research titled ‘The 2040 Technology Gameplan ’ finds that these sectors will account for 37 percent of global industrial value creation by 2040, up from 9 percent today.

The study identifies 14 core technology areas as critical for industrial growth, representing a market potential of EUR 16 trillion. Semiconductors, artificial intelligence (AI) systems and data centres are projected to constitute more than half of this total. Additional sectors highlighted include energy storage, quantum technologies and humanoid robotics.

Furthermore, the report points out that Europe could capture approximately 20 percent of the global market across these 14 primary technology sectors by 2040, equivalent to EUR 3 trillion in value creation. However, European industry has lost market share to the United States and China due to scaling constraints, capital limitations and institutional complexity.

To address these challenges, the analysis outlines three approaches tailored to specific technology fields: pursuing global leadership in areas such as quantum technology, medical technology, microgrids and carbon capture; leveraging domestic demand in sectors like autonomous defence, humanoid robotics and charging infrastructure; and attracting foreign technology providers to establish local operations for large language models and next-generation semiconductors.

Felix Mogge, Partner, Roland Berger, said, "Europe faces a clear mandate for action. Policymakers and industry leaders must work together to create the right conditions for investment and scaling. Otherwise, the value creation generated by the next wave of technology trends will take place elsewhere."

The study indicates that existing European regulatory frameworks, including the AI Act, the EU Battery Regulation, and the European Chips Act, have not fully achieved their targets. The findings call for EU-wide policies to support commercial scaling, capital availability, and industrial strategy across member states.

Stefan Riederle, Partner, Roland Berger, said, "Europe has the technologies and the talent to compete for global leadership in a number of fields. The challenge now is to choose the right strategy for each technology area and secure Europe’s long-term competitiveness."

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