India's Vertical Mobility Industry Urges Union Budget 2026 for Infrastructure and Digitalization Boost

Industry Eyes Union Budget 2026 for Growth Impetus

India's elevator and smart vertical mobility industry is keenly looking towards the upcoming Union Budget 2026, anticipating crucial support for its continued expansion and modernization. The sector, which underpins the nation's construction and real estate industries, collectively contributing nearly 16% to India's GDP, plays a vital role in urban development, including housing and metro projects.

Key Demands for Sustainable Development

Ahead of the budget presentation, industry stakeholders have articulated several key demands aimed at fostering sustainable growth and enhancing global competitiveness. These include:

• Sustained Infrastructure Spending: A continued governmental push in infrastructure development is seen as fundamental to driving demand for vertical mobility solutions.
• Digitalization Incentives: The industry is seeking targeted incentives for the adoption of advanced technologies such as AI- and IoT-enabled smart lifts and energy-efficient systems.
• Boost to Local Manufacturing: Measures to strengthen local manufacturing capabilities are crucial for ensuring safety, quality, and global competitiveness within the sector.
• Support for Urban Initiatives: Budgetary allocations for government initiatives like the Smart Cities Mission and the Pradhan Mantri Awas Yojana (PMAY) housing scheme are expected to accelerate elevator demand.
• Unified Regulatory Framework: There is a strong call for the implementation of a unified 'One Nation, One Lift Law' to standardize safety protocols and streamline regulations across the country.

Market Dynamics and Economic Contribution

India's elevator and escalator market has emerged as the world's second-largest vertical mobility sector, presenting a high-growth investment opportunity. Currently valued at approximately USD 15 billion, the sector is projected to reach between USD 22-23 billion by 2033. This growth is primarily fueled by rapid urbanization, a robust construction boom, and increasing demand for smart, safe, and energy-efficient vertical transportation systems. Residential projects account for a significant portion of this demand, representing 65-70% of lift installations, with Tier II and III cities experiencing 10-15% growth in vertical development.

Suraj Thodimarath, President of the Elevator & Escalator Component Manufacturers' Association of India (EECMAI), emphasized that 'A continued infrastructure push in the Union Budget, combined with incentives for smart technologies and local manufacturing, will be critical for scaling India's elevator and escalator industry while ensuring safety, quality and global competitiveness.' Similarly, Abhijit Dandekar, President of PALEA, noted that 'The Union Budget presents a significant opportunity to strengthen the vertical mobility ecosystem by supporting modernization, energy-efficient technologies, and MSMEs across the value chain.'

Aligning with National Development Goals

The industry's expectations align with the government's broader focus on infrastructure-led growth and digitalization. Central capital spending is anticipated to exceed ₹12 lakh crore in Budget 2026, with experts projecting a 10-15% increase in government capital expenditure for infrastructure. Such investments are crucial for the real estate sector, which seeks policy stability, tax relief, and continued infrastructure spending to sustain housing momentum. Support for the vertical mobility sector through the upcoming budget is expected to further solidify India's position as a global hub for smart, safe, and sustainable urban infrastructure.