By Harshavardhan Chitale
The Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, presents a balanced, forward-looking roadmap for India’s economic momentum.
At a time when global growth remains uneven and supply chains are being aggressively realigned, this year’s Budget offers industry clarity by anchoring itself to infrastructure, manufacturing depth, as well as inclusive growth. A defining feature of this year’s Budget is the record public capital expenditure of Rs 12.2 lakh crore, underscoring a commitment to capital-led growth.
This investment promises a powerful multiplier effect, particularly for logistics and employment-intensive sectors. It is especially significant for the two-wheeler industry, which sits at the intersection of personal transport, last-mile connectivity, and rural economic vitality.
Massive Infrastructure Focus
Infrastructure now commands a substantive share of the national investment focus.
Notably, the Ministry of Road Transport and Highways (MoRTH) has been allocated approximately Rs 3.1 lakh crore for 2026-27, reaffirming roads as central pillars of connectivity. For a sector that derives substantial volumes from semi-urban and rural India, these investments directly translate into improved market access, higher usage, and safer road conditions.
However, the more structural signal for industry lies in the Budget’s manufacturing priorities.
The renewed emphasis on localisation is critical; components account for a significant share of vehicle costs, and recent disruptions have exposed the risks of import dependency. The Budget reflects a clear intent to cement India’s position as a global manufacturing hub through the “Make in India” initiative and enhanced supply-chain resilience.
Future Mobility Ecosystem
Equally vital is the integrated view of future mobility. Continued support for the electric mobility ecosystem including charging infrastructure, duty relief for battery manufacturing, and the development of rare-earth mineral corridors will accelerate the transition to clean mobility and make sustainable transportation a mainstream choice for millions of Indians.
Furthermore, the Rs 40,000 crore allocation for the Semiconductor Mission and support for advanced electronics are increasingly relevant as vehicles become more tech-intensive.
Crucially, the Union Budget’s focus on the rural economy and agricultural productivity is a massive catalyst. By bolstering disposable income in the hinterlands, the government is fuelling the primary engine of two-wheeler demand. This holistic approach ensures that the dividends of high-tech growth are shared equitably across India’s diverse landscape.
Viewed through the lens of mobility and manufacturing, the Budget 2026 charts a confident path for industrial expansion and innovation.
As always, execution remains the priority. Faster implementation and coordinated policy delivery across states will ensure India evolves beyond being the world’s largest two-wheeler market to become a global hub for future-ready mobility.
(The author is CEO at Hero MotoCorp)
Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express.