
By FR Singhvi, President, Automotive Skills Development Council (ASDC)
The Union Budget 2025–2026 is welcomed by the Automotive Skills Development Council (ASDC), which reaffirms the Indian government’s commitment to innovation, employment, and skill development, especially in the automotive and electric vehicle industries. This budget places a high priority on developing a workforce that is prepared for the future, guaranteeing India’s leadership in clean technology and cutting-edge transportation solutions. The creation of five National Centers of Excellence, which use international collaborations to improve R&D and skilling, is a significant feature. Both OEMs and component makers will profit from the ₹20,000 crore allotted for innovation, which would hasten developments in ADAS, connected cars, and electric mobility. Furthermore, ₹10,000 crore under the National Manufacturing Mission will help the manufacture of solar panels and EV batteries by bolstering clean tech manufacturing.
Skilling initiatives have received a major boost with:
- 50,000 Atal Tinkering Labs fostering hands-on learning and innovation.
- PM Research Fellowships, offering 10,000 scholarships over five years, driving cutting-edge research in mobility and automation.
- Expanding five IITs and adding 6,500 seats to enhance access to technical education.
- 10,000 new medical seats this year (75,000 over five years) to support healthcare workforce development.
- ₹500 crore AI Centre of Excellence, integrating AI-driven mobility solutions into skilling and education.
Additionally, the Academic Bank of Credits’ budget has increased to ₹16 crore, streamlining digital learning pathways for skill enhancement. Broadband connectivity in all government secondary schools and new science centers will further bridge the digital divide and enhance skill-building opportunities. Union Budget 2024 places a strong emphasis on education and skilling, recognizing them as the foundation for India’s economic growth, particularly in new technologies and the mobility sector. By prioritizing skill development and research, the government is ensuring that India’s workforce is prepared for the demands of an evolving global economy. ASDC remains committed to aligning skilling programs with industry demands, ensuring a robust talent pipeline for automotive manufacturing, EVs, and emerging mobility solutions. This budget is a major step toward job creation, global competitiveness, and India’s leadership in sustainable mobility.