Punjab industry wishlist: Ludhiana MSMEs pin high hopes on Union Budget 2026 as bicycle capital looks for a shift to EVs

Highlighting the transition underway in Ludhiana’s industrial ecosystem, Sharma noted that many units are shifting from conventional auto and bicycle parts to electric vehicle (EV) components.

“The industry expects continuation of EV incentives beyond the Faster Adoption and Manufacturing of Electric Vehicles (FAME) framework. There is also a strong demand for Production Linked Incentive (PLI) support for EV motors, controllers, and battery components to help MSMEs scale up,” he said.

Echoing concerns of the garment sector, Sudarshan Jain, president of the Knitwear and Apparel Manufacturers Association of Ludhiana (KAMAL), said the MSME sector has struggled to recover even after the Covid-19 pandemic. Ludhiana, known as the ‘Manchester of India’ is also a major hub of bicycle manufacturing, auto parts, and sewing machines.

“MSMEs have not been able to grow post-Covid. The government should focus on easing financial availability, particularly through interest subvention schemes. We are not asking for relief packages, only genuine ease of doing business,” Jain said.

From the bicycle manufacturing ecosystem, Lakhminder ‘Dicky’ Chhabra, Convenor of the United Cycles Parts and Manufacturers Association (UCPMA), stressed the need for incentives that promote domestic manufacturing of components such as frames, gears, and precision parts.

“‘Make in India’ should be visible on the ground. Industry needs simplified compliance norms, infrastructure support, and resolution of mixed-land use issues. Bicycle manufacturers in Ludhiana have long been advocating for the inclusion of e-bikes under existing PLI and EV support policies to help upgrade technology and compete globally,” Chhabra said. She also reflected broader household concerns, stating,” from a homemaker’s  perspective- children’s education and healthcare should not become financial burdens, household savings must retain real value amid inflation, and families need greater income stability for stress-free monthly planning.”

On the taxation front, Rajnish Ahuja, president of the Apex Chamber of Commerce and Industry, called for simplification and rationalisation of income tax slabs.

“Tax rates need to be reduced to encourage transparency and widen the tax base. Multiple layers of taxation—GST, high fuel taxes, electricity duties—are already burdening taxpayers. Instead of overburdening a small segment, the focus should be on rationalising income tax slabs to bring more people into the tax net,” Ahuja said.

Industry leaders across Punjab expressed hope that the upcoming Union Budget would acknowledge the critical role of MSMEs in employment generation and exports, and deliver policy measures that enable sustainable growth, competitiveness, and economic stability.