With Finance Minister Nirmala Sitharaman scheduled to present the Union Budget 2026-27 on Sunday, February 1, 2026, at 11 AM, India’s telecom and electric mobility sectors are outlining clear priorities for continued digital expansion and sustainable transport growth.
The telecom industry enters FY26 on a strong footing, following projected record revenues of US$35 billion in FY25, propelled by tariff revisions, rising data usage, and rapid 5G deployment now covering most districts and tens of millions of users. Ongoing network investments and BharatNet broadband expansion continue to narrow the urban-rural connectivity gap.
Meanwhile, shared electric mobility and low-speed EV players highlight persistent structural issues, notably GST disparities on battery-as-a-service models (18% vs. 5% for fixed-battery EVs), exclusion from key incentives, and the need for stronger domestic battery manufacturing and recycling support to scale affordable, low-emission last-mile solutions.
Konark Trivedi, Founder and MD, Frog Innovations Ltd., welcomed the sector’s momentum and its role in India’s digital future.
“India’s telecom sector continued its strong momentum into FY26, building on a projected record US$35 billion in revenues in FY25, driven by tariff increases and expanding data usage across the country. The rapid rollout of 5G has significantly expanded high-speed connectivity, reaching most districts and serving tens of millions of users, while continued network investment is helping bridge the urban-rural digital divide. At the same time, rural digital access is being improved through initiatives like BharatNet, which is progressively extending broadband connectivity to a large number of Gram Panchayats nationwide. Frog Innovations Limited is proud to contribute to this ecosystem with advanced 4G/5G coverage solutions tailored for both large venues, such as airports, metro stations, stadiums, and corporate campuses, and smaller enterprise and community locations, including corporate offices, bank branches, and SOHO environments. Our technology helps ensure reliable mobile connectivity where it matters most, supporting digital adoption, economic activity, and quality of life across diverse user segments. The telecom industry is poised to play an even greater role in India’s growth story over the coming decade, and our focus remains on building sustainable, high-performance network infrastructure that enables jobs, empowers startups, and underpins India’s evolution toward global 6G leadership.”
RK Misra, Co-founder and President-Ecosystem Partnerships, Yulu, called for greater policy inclusion of shared and low-speed electric mobility to combat urban pollution and congestion.
“As India grapples with rising air pollution and urban congestion, Budget 2026 is an important opportunity to strengthen shared and low-speed electric mobility as a core pillar of clean transport. While EV policy support has largely favoured personal vehicle ownership, low-speed electric vehicles that power last-mile connectivity and urban deliveries remain outside key incentive frameworks, despite their proven impact. The sector also continues to face structural challenges under GST. While EVs purchased with fixed batteries attract 5% GST, battery-as-a-service models are taxed at 18%, with no refund on input tax credits, leading to significant capital blockages. Rationalising GST, including LSEVs within subsidy and fleet-conversion mandates, and incentivising shared mobility can meaningfully reduce congestion, lower emissions, and make clean mobility more accessible at scale.”
Muthu Subramanian, MD at Yuma Energy, emphasised the urgency of domestic battery ecosystem development.
“To make EVs truly affordable and scalable, Budget 2026 must accelerate domestic battery cell manufacturing, rationalise GST on batteries and swapping, and strengthen recycling frameworks. Targeted incentives for battery-swapping and local supply chains can sharply reduce costs while improving safety, sustainability, and energy security.”
These perspectives highlight a dual imperative for the Union Budget 2026: sustain telecom’s connectivity leadership while removing fiscal and incentive barriers in the EV and shared mobility space. Targeted reforms in these areas could strengthen digital inclusion, cut urban emissions, enhance energy security, and support India’s broader goals of self-reliance and green growth.
Last Updated on: Thursday, January 22, 2026 12:45 pm by News Vent Team | Published by: News Vent Team on Thursday, January 22, 2026 12:45 pm | News Categories: News
About The Author
