Union Budget 2026 Auto Industry: Finance Minister Nirmala Sitharaman today presented the Union Budget 2026. The Union Budget 2026 has presented several significant steps to strengthen India’s sustainable and green mobility. From CNG and PNG blending to ISM 2.0, let’s take a look at all the comprehensive measures presented in the Union Budget 2026.
CNG/PNG Blending Made Mandatory
The finance minister mandated that the CNG/PNG should be blended with the Compressed Bio Gas (CBG) in a phased manner. While the blending of CBG with CNG is expected to reduce its prices and strengthen sustainable mobility, the blending of PNG is expected to result in reduced prices, and it is expected to benefit households, as the PNG is used domestically.
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Indian Semiconductor Mission 2.0
While the Finance Minister strengthened the sustainable mobility of the country by announcing the mobility of CBG with CNG/PNG, she also paved the way for more advanced cars by announcing the Indian Semiconductor Mission 2.0. The finance minister also announced that the government will be focusing on the manufacturing of the Semiconductors, and she also announced that Rs 40 crore has been allocated solely for semiconductors.
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EVs To Become More Affordable
The Finance Minister has also proposed the addition of 35 additional capital goods for EV battery manufacturing to the list of exempted capital goods. The finance minister said in her Union Budget 2026 speech that the move is aimed at boosting the domestic manufacturing of lithium-ion batteries for EVs as well as mobile phones. The domestic manufacturing of batteries for electric vehicles is expected to further reduce the pricing of EVs in the country.