Union Budget: A Major Boost for EV Sector, Gig Economy, & Green Mobility

The Union Budget 2025-26 has given a significant boost to India's Electric Vehicle (EV) sector, reinforcing the government's commitment to sustainable mobility and reducing carbon emissions. With a clear focus on promoting green technologies, the budget introduces several measures to accelerate the adoption of electric vehicles across the country. Key announcements include enhanced incentives for EV manufacturers, reduced tax rates on EV components, and increased investments in EV infrastructure, such as charging stations. These steps are designed to make EVs more affordable and accessible to the masses, stimulate domestic manufacturing, and encourage private sector participation in the EV ecosystem. By prioritizing the EV sector, the budget positions India as a leader in the global push for cleaner, greener transportation, while also creating jobs and driving economic growth in emerging green industries.

Rashi Agarwal, Co-founder & Chief Business Officer, Zypp Electric

"The Union Budget 2025 reaffirms India's commitment to fostering entrepreneurship and empowering the gig economy. The government's decision to establish a new ‘Fund of Funds for Startups’ with an additional ₹10,000 crore infusion will provide a significant boost to innovation and job creation. This initiative, coupled with the dedicated support for 5 lakh women, SC, and ST first-time entrepreneurs, will drive inclusive growth and encourage diverse participation in the startup ecosystem.

Furthermore, introducing identity cards and healthcare coverage for gig workers under PM-Jan Aarogya Yojana is a landmark move towards recognizing and securing the livelihoods of millions in the gig economy. These measures are a game-changer at Zypp Electric, where our fleet is powered by thousands of gig workers enabling sustainable last-mile deliveries. Access to social security and financial support will empower our rider partners, enhance workforce stability, and accelerate the adoption of green mobility solutions across India. We welcome these forward-thinking initiatives, which will not only strengthen India's entrepreneurial landscape but also ensure social security for the workforce driving the nation's digital and mobility revolution."

Hyder Ali Khan, CEO & Director, Godawari Electric Motors:

The Union Budget’s focus on cleantech and self-reliance is a major boost for India’s EV industry, directly benefiting Godawari Electric Motors. The National Manufacturing Mission supports local EV battery and solar panel production, reducing import dependency and enhancing cost efficiency.

The establishment of five National Centres of Excellence for Skilling will strengthen the EV workforce, while the exemption of Basic Customs Duty on critical minerals like cobalt and lithium-ion batteries ensures a steady supply of key raw materials for domestic manufacturing.

Additionally, the increased tax relief of up to ₹12 lakh will enhance consumer consumption, accelerating EV adoption and reinforcing sustainable mobility adoption across segments.

Also Read: Union Budget 2025: Empowering MSMEs with enhanced credit & growth opportunities