India’s 2026-27 budget prioritizes the electric vehicle (EV) sector, with e-bikes emerging as key beneficiaries. The budget includes measures designed to lower import duties on components crucial for e-bike manufacturing, aiming to reduce production costs and increase domestic production. Financial incentives are also being extended to consumers purchasing e-bikes, further stimulating demand. Experts suggest this focus stems from e-bikes’ potential to address urban congestion and reduce pollution more rapidly than larger EVs. The auto sector generally received moderate attention, with a continued emphasis on promoting cleaner fuel alternatives. Industry analysts predict significant growth in the e-bike market as a result of these policies, potentially creating new employment opportunities. The government views e-bikes as a practical and affordable mobility solution for a large segment of the population.