Budget Boost: Positive Reactions to India's Focus on Clean Energy and Manufacturing
Key Ideas
- Industry leaders and experts praise the Union Budget 2025-26 for its emphasis on critical minerals, renewable energy, domestic manufacturing, and power sector reforms.
- Experts commend the budget for supporting clean energy sovereignty, circular economy leadership, and technological capabilities through investments in R&D and policy initiatives.
- The budget's focus on public-private partnerships, infrastructure development, and renewable energy is set to accelerate India's transition to sustainable power solutions and strengthen its position in the global renewable energy supply chain.
- While the budget receives positive feedback overall, some experts express the need for broader support and announcements on alternative fuels like hydrogen for a more comprehensive clean mobility strategy.
The Union Budget 2025-26 in India has garnered positive reactions from industry leaders and experts for its significant focus on critical minerals, renewable energy expansion, domestic manufacturing, and power sector reforms. Rajat Verma from LOHUM praised the budget as a "watershed moment" for India's clean energy sovereignty and circular economy leadership, emphasizing opportunities for domestic manufacturing and investments in emerging technologies. The budget also includes provisions for the National Critical Mineral Mission and policies for critical minerals recovery. Schneider Electric's Deepak Sharma highlighted the benefits for manufacturing, clean energy, and power sector modernization. Abani Jha from Saatvik Green Energy mentioned the importance of clean-tech manufacturing support for India's renewable energy position, while also welcoming the backing for wind turbines and electrolysers. The budget's allocations in interest-free loans, support for MSMEs, and emphasis on domestic manufacturing and capital spending have been well-received. However, some experts like Suyash Gupta from the Indian Auto LPG Coalition and Heena Khushalani from EY India expressed the need for wider adoption of alternative fuels like hydrogen and more attention to climate resilience and adaptation financing. Overall, the budget is seen as a positive step towards sustainable and cleaner energy solutions, but there are calls for a more comprehensive strategy that includes alternative fuels for a greener future.