India’s 2025 budget has emphasized a green transition, aiming to strengthen the country’s position as a global clean energy leader and accelerate decarbonization goals. The budget has allocated significant investments in renewable energy, electric vehicles (EV), and battery storage, which are expected to drive the country’s clean energy transition.
Industry players have welcomed the budget’s focus on domestic manufacturing of renewable energy equipment, including wind and solar power, as well as high-voltage transmission equipment. The budget has also allocated Rs 1,500 crore to the solar power segment, which is expected to enhance grid infrastructure and drive solar adoption.
The budget’s emphasis on intra-state transmission expansion and financial incentives for states to implement power sector reforms is also seen as a positive step, as it will directly enhance grid reliability, reduce transmission losses, and improve power distribution efficiency.
Experts have also highlighted the importance of the Nuclear Energy Mission, which aims to invest Rs 20,000 crore in Small Modular Reactors (SMRs), as it will support clean baseload power and reduce dependence on fossil fuels.
The budget’s focus on modernizing the power grid and scaling renewables through robust public-private partnership (PPP) models is also seen as crucial for a sustainable energy future. Additionally, the rationalization of tariffs on critical minerals and incentives for manufacturing of Li-ion batteries are expected to strengthen the domestic manufacturing ecosystem.
Overall, the budget’s emphasis on green transition, renewable energy, and clean tech is expected to create more green jobs, drive innovation, and accelerate India’s decarbonization goals.