Overall Budget 2025-26 has been welcomed by the industry with its focus on clean power, impetus to nuclear energy and incentives on last-mile reforms in the distribution segment. A quick look at the industry leaders views’ on this year’s budget…..
Pratik Agarwal, managing director, Sterlite Power and chairman, Serentica Renewables
The budget’s focus on deregulating Nuclear power and encouraging indigenous small modular reactors (SMRs) is a big step in the right direction. With enough efforts in R&D, India can strive for global leadership in nuclear power capital goods. While there is continued focus on domestic manufacturing of generation and storage equipment, there is new-found mention of high-voltage transmission equipment. Given that there are global deficits in this product category, focusing on this sub-segment is a very sound move. India can strive to displace its neighbours and become a global champion in high-voltage transmission equipment. Last, the focus on distribution reforms and intrastate transmission is extremely welcome. India’s power sector is doing quite well when it comes to generation, and inter-state transmission. It’s the last mile transmission and distribution (T&D) that needs the most attention.
Girish Tanti, vice chairman, Suzlon
The Government budget seems to be a significant step towards achieving India’s ambitious energy goals. By strengthening Aatmanirbhar Bharat across manufacturing and agriculture, with a focus on clean tech, wind, solar, EV, and battery storage, the budget aims to accelerate self-reliance in wind and solar manufacturing. The National Manufacturing Mission’s targeted support for all renewable energy sources is a welcome move, as it reinforces India’s commitment to a level playing field and ambitious energy goals. The expected outcomes are promising: surpassing the 500 GW target and creating nearly 3 million green jobs. Additionally, incentives for electricity distribution reforms and intra-state transmission upgrades will likely improve the financial health of power companies and enable better grid integration of renewables. This comprehensive approach should have a positive impact on India’s economy and population.
The key word is Eco-System : the nation cannot rely on just individual solutions to achieve its green transition at lowest cost to customers. It requires a judicious mix of wind, solar, batteries and other non-fossil technologies, together with distribution reforms. And for national security, we need to build this expertise locally, requiring the build-out of all these industries at scale. We are happy that this budget recognises this need. Suzlon is keen to work with the government and together with our fellow industrial groups to realise this vision.
Rahul Munjal, chairman and managing director, Hero Future Energies
I would like to congratulate the Hon’ble Finance Minister for presenting a visionary budget that aims to place India on a trajectory of inclusive, sustainable, and rapid economic growth. The thrust on infrastructure, manufacturing, healthcare, innovation along with direct tax reforms leaving more disposable income in the hands of the middle class should galvanise the economy. The Budget also prioritises India’s clean energy ambitions by announcing policy support to boost grid storage infrastructure and production of electrolysers, wind turbines, solar cells, batteries, and very high voltage transmission equipment. The rationalisation of tariff on critical minerals and the incentives for manufacturing of Li-ion batteries are positive steps that will help strengthen the domestic manufacturing ecosystem, paving the way for Atma Nirbhar clean energy and clean tech sector and create more green jobs. This is a Budget that sets the roadmap for a resilient, progressive and Viksit Bharat.
Anish De, Global Head of Energy, Natural Resources and Chemicals, KPMG
The ambitious program on nuclear power outlined in the Union Budget 2025 is a very welcome development. In the coming decades the country will become the second largest energy demand centre in the world. Nuclear energy will have to play a central role in decarbonisation of India’s energy supplies. For this a range of issues have to be addressed including on technology, fuel, safety, liabilities and costs. Setting a clear north star on development of nuclear power at scale through the Union Budget provides directional clarity on these issues. However, a string of follow on measures will be required to ensure implementation of the goals and attract. Amendment of the Atomic Energy Act will be a key step in that regard.
Shardul Fadnavis, Partner & Utility Transformation Leader, PwC India
Increase in allocation for solar, green hydrogen mission and the aim to generate 100GW through nuclear by 2047 sets us up for a balanced mix of clean energy in the coming years as we continue to cater to our growing electricity demand. Also, the setting up of the National Manufacturing Mission for cleantech will encourage indigenious participation further.
Vishal Mehta, Indian Leader, Energy Practice, BCG
The Union Budget’s focus on energy transition is notable, particularly the push for energy security through alternative energy sources, distribution reforms and intra-state transmission augmentation. Incentivising states with additional borrowing linked to these reforms is a smart way to drive adoption. The Rs 811.74 billion energy sector allocation, along with the Nuclear Energy Mission’s 100 GW by 2047 goal, in addition to last year’s focus on solar energy demonstrates a strong drive towards a cleaner, more resilient energy mix for a developed India. The amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, along with the focus on public-private partnerships, are important steps towards unlocking benefits of nuclear energy while safeguarding public interest. The allocation of Rs 200 billion for small modular reactor (SMR) development with intent to operationalise at least five indigenous SMRs by 2033 is an ambitious yet achievable target, provided there is a clear roadmap and efficient execution. These measures demonstrate a clear vision for a sustainable and energy-secure future, aligning with the broader goals of Viksit Bharat.
Avantika Gupta, CEO, OPG Power Ventures
The Government has presented a pragmatic roadmap that builds a robust foundation for a ‘Viksit Bharat 2047’ while also deploying stringent guardrails to ensure a low carbon output. The emphasis on fortifying India’s energy security while also realising committed decarbonisation goals, shall accelerate India’s sustainable growth paradigm in the decades to come. Focus on innovation, and strengthening domestic manufacturing in critical areas such as grid-scale batteries, electrolysers, solar cells, wind turbines, and nuclear power will be instrumental in shaping India’s energy future. The establishment of five National Centres for Excellence in skilling, incentives for electricity distribution reforms, and strategic amendments to the Atomic Energy Act will further enable a robust, self-reliant energy ecosystem. By incentivising states to drive reforms and expanding intrastate transmission capacity, we are moving toward a stronger, more efficient power sector. The additional borrowing allowance for states committed to these reforms reflects the government’s dedication to long-term stability and sustainability. These measures shall strengthen the financial health of power companies and pave the way for a resilient energy infrastructure that supports economic growth and industrial expansion across the country. The launch of the Nuclear Energy Mission, with a Rs 200 billion outlay for Small Modular Reactors, and the vision to develop 100 GW of nuclear power by 2047, marks a transformative step towards clean energy transition. Additionally, the exemption of critical minerals like cobalt, lithium-ion battery waste, and zinc from basic customs duty will enhance domestic supply chains and accelerate India’s energy security.
Abani Jha, CFO, Saatvik Green Energy
The Union Budget 2025 lays the groundwork for accelerating India’s clean energy transition and building a robust domestic manufacturing ecosystem. The announcement of a National Manufacturing Mission with execution and policy support for clean-tech manufacturing is a much-needed boost that will enhance India’s competitiveness in the global renewable energy supply chain. The government’s continued focus on strengthening domestic manufacturing of solar cells, modules, and grid-scale batteries aligns with Saatvik Green Energy’s vision of making India self-reliant in solar technology and reducing dependency on imports. Additionally, the support for wind turbines and electrolysers will further boost India’s leadership in the renewable energy sector. These initiatives will not only drive large-scale investments but also generate employment and technological advancements in the industry. The launch of the Nuclear Energy Mission, along with proposed amendments to key legislation and the focus on Small Modular Reactors (SMRs), signals a diversified and forward-thinking approach to clean energy. While nuclear power has its role in India’s long-term energy security, I believe that solar energy remains the most scalable and cost-effective solution to achieve near-term decarbonisation goals. We look forward to collaborating with stakeholders to ensure that solar energy continues to be at the forefront of India’s clean energy transition.
Saurabh Kumar, Vice President – India, Global Energy Alliance for People and Planet
This year’s budget builds on India’s aim to become a global leader in renewable energy. The National Manufacturing Mission will provide impetus to domestic production of clean technologies such as solar PV cells and grid-scale batteries. It will scale up the deployment of renewable energy and make India a crucial link in the global supply chains. The focus on implementing private sector driven research, development and innovation will augment our capabilities to nurture innovative solutions for a people-positive energy transition.
Naresh Mansukhani, CEO, Juniper Green Energy
The Union Budget 2025-26 provides a comprehensive roadmap for India’s transition to a sustainable energy future, with a clear focus on expanding clean energy capacity. The ambitious target of 500 gigawatts of non-fossil fuel energy by 2030, coupled with significant support for solar and wind energy, is a much-needed push for the sector. The government’s focus on incentivising states to reform electricity distribution and improve intrastate transmission is equally crucial, especially given the challenges faced by regions like Rajasthan, Gujarat, and Uttar Pradesh. These measures will not only enhance power reliability but also create a more resilient energy infrastructure, which will be vital as we scale our clean energy projects.
The allocation of Rs 15 billion to the solar power (grid) segment in this budget reinforces India’s commitment to the renewable energy transition. The sector has witnessed consistent and significant budgetary support over the years. In recent years, solar power has been a key priority, with allocations surging from Rs 23.69 billion in 2021-22 to Rs 33.04 billion in 2022-23. Even in 2020-21, when the allocation stood at Rs 24.49 billion, the sector received substantial backing. This continued investment highlights the government’s long-term vision for clean energy adoption.
The extra borrowing allowance provided to states, contingent on the implementation of reforms, will also strengthen the operational efficiency and financial health of power distribution companies, ensuring that the benefits of clean energy reach all corners of the country. We remain committed to playing our part in India’s clean energy goals, and this budget will be a key enabler in achieving those objectives.
Neerav Nanavaty, CEO, BluPine Energy
The budget lays out a bold and pragmatic roadmap for India’s clean energy future. The focus on boosting domestic manufacturing of EV batteries, solar panels, and other clean tech components will strengthen our supply chains and reduce import dependencies. At BluPine Energy, we are already aligned with this vision, actively working to enhance our renewable energy projects with domestically manufactured solar modules and equipment, while strengthening local supply chains to reduce reliance on imports. Power sector reforms, particularly incentives for distribution companies and intra-state transmission upgrades, will further improve grid efficiency and financial viability. The Nuclear Energy Mission, with its ambitious 100 GW target and support for Small Modular Reactors, shows a strong commitment to diversifying the country’s energy mix. These initiatives not only complement our current efforts but also open new avenues for growth, and we, at BluPine, remain committed to playing a key role in advancing India’s clean energy transition.
Visweswara Reddy, CMD, Shirdi Sai Electricals Limited Group
The Union Budget 2025 highlights the government’s strong commitment to meeting rising energy demands while staying aligned with its climate goals. Apart from key focus on strengthening electricity distribution, the budget plans to incentivise states to adopt critical reforms, such as smart metering much required towards a sustainable and equitable energy future. In addition, the continued support for PLI schemes for solar energy and contributions from nuclear energy will be pivotal in achieving renewable energy targets, ensuring a sustainable future for all. Overall, this announcement signals a major shift toward a diversified energy strategy, balancing clean energy with energy security. It reflects the government’s ambition to make India a global leader in sustainable energy while leveraging private sector innovation to accelerate the transition.
Anmol Singh Jaggi, Chairman and Managing Director, Gensol Engineering Limited
The National Manufacturing Mission is a transformative initiative that will create a more agile and competitive ecosystem for businesses. This mission is set to rapidly scale India’s domestic capabilities in solar PV cells, EV batteries, electrolysers, and grid-scale batteries. Gensol Group, being actively engaged across these sectors, is fully committed to contributing to India’s vision of Aatmanirbhar Bharat. We welcome the government’s budget, which prioritises these critical pillars of India’s long-term sustainability and global leadership in clean energy. Clean tech manufacturing thrives on policy certainty and strategic support, and this Mission provides both, backed by a robust execution and monitoring framework.
Vivek Bhatia, MD & CEO, TKIL Industries Private Limited
The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, prioritises sustained reforms in manufacturing, mining, power, and skill development along with improving ease of doing business to advance the ‘Viksit Bharat’ vision. These sectors will be key drivers of growth, infrastructure development, governance improvements, and sustainable development for the country. We welcome the government’s move towards accelerating India’s manufacturing sector. Over the past decade, structural reforms have drawn global attention, and the announcement of a National Manufacturing Mission is a significant step in strengthening the Make in India initiative. This will drive clean-tech manufacturing, bolstering the ecosystem for solar cells, EV batteries, wind turbines, and more. The Rs 1.5 trillion allocation for 50-year interest-free loans is set to accelerate infrastructure development, unlocking new growth avenues for us. These strategic measures position India as a rising global manufacturing hub, seamlessly aligning with its green energy and economic ambitions. Further, the initiatives on tax rationalisation will give a boost to the consumption economy further driving economic growth. We applaud these initiatives and eagerly anticipate the forthcoming policy on critical mineral recovery, which will play a pivotal role in driving sustainable industrial growth.
Nikhil Sawhney, VC&MD, Triveni Turbines
The government’s renewed commitment to manufacturing excellence and energy sector reforms marks a transformative step for India’s industrial growth. The National Manufacturing Mission and enhanced credit support for MSMEs will not only strengthen domestic capabilities but also drive energy-efficient solutions across industries. Additionally, the emphasis on clean-tech manufacturing, power sector reforms, and the Nuclear Energy Mission opens new avenues for sustainable energy innovation. At Triveni, we see these initiatives as a catalyst for innovation, sustainability, and self-reliance, reinforcing India’s leadership in advanced energy solutions.
Amit Sharma, MD & CEO, Tata Consulting Engineers
The Union Budget 2025-26 delivers a transformative push across key sectors, reinforcing India’s commitment to sustainable growth and self-reliance. The National Manufacturing Mission’s focus on cleantech industries, including solar PV cells, EV batteries, electrolysers, and grid-scale batteries, will strengthen domestic value addition and position India as a key player in global clean energy supply chains. Investments in power transmission and distribution, along with electricity distribution reforms, will modernise the sector and ensure financial stability for discoms. Nuclear energy is a key pillar of India’s energy security and self-sufficiency, supporting a steady shift to cleaner power while keeping the grid stable. The goal of reaching 100 GW of nuclear capacity by 2047 is backed by important reforms, including changes to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, allowing private sector involvement in nuclear projects. The Rs 200 billion investment in small modular reactors (SMRs) highlights India’s plan to use its rich thorium reserves for long-term energy independence. These advanced nuclear technologies will provide reliable, scalable, and low-carbon energy, strengthening the country’s energy supply. This approach broadens the energy mix and ensures long-term sustainability by reducing dependence on imported fossil fuels. The Critical Minerals Development Policy, alongside customs duty exemptions on essential resources, ensures a secure supply chain for high-tech industries, supporting India’s ambitions in advanced manufacturing and clean energy. Green bonds and hydrogen R&D incentives further reinforce our commitment to a net-zero future.
Simarpreet Singh, Executive Director & CEO, Hartek Group
India’s dedication to renewable energy and manufacturing is emphasised in the Union Budget 2025-26, which places a high priority on solar, battery storage, and grid-scale electrification. An important step toward achieving energy independence is the emphasis on cleantech production of wind turbines, solar cells, and electrolysers. Further, the budget talks about building an ecosystem for high voltage transmission equipment. While the fine print is awaited, this is a welcome announcement since this may lead to commencement of manufacturing of HVDC in India. India will become a global leader in clean energy by accelerating the integration of renewable energy through deep-tech funding and strengthening intrastate transmission. A key component of the 2030 sustainability target is India’s drive for solar, battery storage, and next-generation energy solutions. Opportunities in solar and energy storage are expected to get a boost with investments in deep-tech innovation and the Rs 1 trillion urban challenge fund.
Deepak Sharma, Zone President- Greater India and MD & CEO, Schneider Electric
The Union Budget 2025 marks a pivotal moment for India, laying the foundation for a truly ‘Viksit Bharat.’ The National Manufacturing Mission, focused on cleantech and ‘Make in India for the World,’ holds immense potential to transform our manufacturing landscape. The government’s commitment to infrastructure is evident, emphasising outcome-driven projects and the Urban Challenge Fund addressing critical needs like airport connectivity and clean water access. I particularly applaud the focus on modernising the power grid and scaling renewables through robust PPP models. This is crucial for a sustainable energy future. Skill development is paramount for India to thrive in the Fourth Industrial Revolution. The establishment of national centers of excellence will empower our workforce with the skills needed for the future economy. At Schneider Electric, we are excited by these developments. We will leverage our expertise in digitalisation, automation, and sustainability to support India’s journey. We will collaborate with the government and industry to accelerate the adoption of clean energy solutions, enhance grid resilience, and build a truly sustainable and inclusive future.