Budget 2026 expectations: Boost for manufacturing

In this episode of Budget Insights, part of the EY India Insights podcast series, Saurabh Agarwal, Partner, Tax, EY India, shares his perspectives on how Budget 2026 could accelerate India’s manufacturing growth. He discusses the potential expansion of the PLI framework and allied schemes to support emerging technologies, emphasizing the need for incentives that keep pace with technological change. The conversation also explores how tax certainty and globally competitive tax rates could attract higher foreign investment and create long-term value for the manufacturing sector.

Key takeaways

• Budget 2026 may announce a second wave of schemes for semiconductors, the lithium-ion battery ecosystem and the automotive sector.
• Targeted initiatives could drive innovation and self-sufficiency in critical technologies.
• New technology-focused schemes could enable PLI expansion into space tech and AI.
• Tax certainty and attractive tax rates could position India as Asia’s most competitive manufacturing destination.

Tune in to explore how Budget 2026 could shape the next phase of India’s manufacturing journey.