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Finance Minister Nirmala Sitharaman announced the extension of customs duty exemptions on capital goods used for manufacturing lithium-ion cells for battery storage in the Union Budget 2026. This measure aims to support the electric vehicle industry.

Additionally, the budget proposes to exclude the entire value of biogas when calculating excise duty on biogas-blended CNG. The government will also provide customs duty exemptions for capital goods necessary for processing critical minerals in India. Sitharaman highlighted the development of an integrated East Coast Industrial Corridor with a node in Durgapur, as well as initiatives for five tourism destinations in Poorvodaya states and the provision of 4,000 e-buses for northeastern regions.