By Mr. Vinkesh Gulati, Chairperson, ASDC
Union Budget 2026–27 sends a clear and positive message about India’s commitment to manufacturing-led growth, with skill development firmly placed at the centre of the national agenda. By focusing on the expansion of strategic manufacturing sectors, strengthening MSMEs and closely linking education with employment outcomes, Budget has the potential to create a meaningful and lasting impact on the automotive ecosystem, which uniquely brings together manufacturing, technology and services.
For automotive industry, this Budget builds strong confidence in India’s position as a global hub for manufacturing and innovation. Targeted investments in advanced manufacturing, capital goods and clean mobility solutions open up fresh opportunities across vehicle manufacturing, auto components, EV, batteries, electronics, logistics and digital services. The renewed focus on revitalising legacy industrial clusters and nurturing ‘Champion MSMEs’ is equally significant, as it will reinforce Tier 1, Tier 2 and Tier 3 suppliers who form the backbone of the automotive value chain.
From a skills standpoint, the emphasis on an Education to Employment approach and industry-aligned skilling is both timely and necessary. The automotive sector is rapidly evolving and needs a future-ready workforce skilled in mechatronics, electronics, embedded systems, AI-enabled manufacturing, quality and safety systems, green technologies and digital tools. The Budget’s push for modular, industry-driven skilling programmes, wider use of technology and the creation of regional centres of excellence will play a vital role in addressing skill gaps and improving employability at scale.
