As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026, the spotlight is turning toward a sector that silently powers India’s economic engine: mobility.
For years, the conversation around transportation has been dominated by large-scale public infrastructure projects like highways and metros. However, as India’s urban workforce evolves and the demands of the service economy grow more complex, the industry is calling for a strategic shift in focus. The expectation this year is for a budget that recognizes employee transportation not merely as a logistical cost but as a critical productivity enabler and a frontline soldier in the battle for decarbonization.
The rapid return to office, coupled with the entrenchment of hybrid work models, has fundamentally altered the daily commute. The traditional 9-to-5 rush hour has fragmented into dynamic, round-the-clock movement patterns. This shift has placed immense pressure on corporate India to provide safe, reliable, and efficient transport for its workforce.
Industry stakeholders are increasingly vocal that the unorganized sector, which has long dominated employee transport, is ill-equipped to handle these modern demands. There is a palpable anticipation for policy interventions that will formalize this space. By incentivizing the shift toward organized, technology-led players, the government could solve multiple urban challenges at once. Organized fleets bring accountability, standardized safety protocols, and data-driven efficiency that unregulated operators simply cannot match.
A central theme of the pre-budget discourse is the electrification of these commercial fleets. While previous budgets have successfully jump-started the personal EV revolution, the mathematics of decarbonization favors high-utilization vehicles. A personal car might travel 30 kilometers a day, but a corporate cab or shuttle often covers over 200 kilometers.
This disparity means that every electric vehicle added to a commercial fleet delivers significantly higher carbon abatement per rupee of subsidy than a private vehicle. The industry is therefore looking for targeted incentives that make the total cost of ownership for electric fleets viable without long gestation periods. This includes not just subsidies for vehicle purchase but also tax breaks for setting up captive charging infrastructure within corporate parks and business districts.
Rajesh Loomba, CMD, ECOS (India) Mobility & Hospitality Limited, articulates this strategic necessity. “As work patterns evolve and India’s urban workforce becomes increasingly mobile, we expect the upcoming Union Budget to formally recognise organised corporate and employee transportation as a vital productivity enabler. With hybrid work models, late-hour shifts, and business travel on the rise, reliable and compliant chauffeur-driven mobility has become integral to ensuring workforce efficiency, safety, and continuity.
From the Budget, there is a strong expectation of policy support that encourages a shift from unorganised transport to technology-led, professionally managed mobility solutions particularly those that prioritise chauffeur training, service standards, and regulatory compliance. At the same time, we look forward to targeted and higher incentives to accelerate the transition to clean mobility in corporate fleets. Incentivising EV adoption in commercial, high-usage fleets where fuel savings and emission reductions per rupee of incentive are significantly higher than private vehicles can deliver faster and more meaningful environmental impact.
A Budget that reinforces road safety, fleet-ready charging infrastructure, and a hospitality-led approach to mobility where customer experience, accountability, and consistency are central will help build a safer, greener, and more resilient corporate mobility ecosystem for India’s future.”
Beyond electrification and formalization, the third pillar of expectation is safety. As cities expand and commute times lengthen, the safety of the workforce during transit becomes a governance issue. Policy frameworks that mandate stricter compliance standards for employee transport providers would force a cleanup of the ecosystem. The integration of hospitality standards into mobility is another nuance gaining traction. It suggests that the future of transport is service-oriented, where the quality of the ride is as important as the destination.
Budget 2026 has the potential to be a watershed moment. By pivoting policy support toward organized, electric, and safe corporate mobility, the government can ensure that the workforce driving India’s growth is not stuck in the past.
