Budget 2026: Auto & Components Get Policy Continuity and Longer-Run Relief

Budget 2026 strengthens the “future-ready” manufacturing stack behind next-generation vehicles. The India Semiconductor Mission will advance through ISM 2.0 to build domestic capability in equipment and materials, develop full-stack Indian IP, and create industry-led R&D and training centers. The Electronics Components Manufacturing Scheme, launched in April 2025, is proposed to be scaled up with the outlay raised from ₹22,919 crore to ₹40,000 crore, reflecting strong investment traction. To secure EV-era inputs, the Rare Earth Permanent Magnets initiative will be supported through dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu to promote mining, processing, R&D and manufacturing.