Union Budget 2025: Paving the Way for a Green Energy Revolution in India
Key Ideas
  • The Union Budget 2025 in India aims to boost the energy sector through renewable energy, green hydrogen, tax reforms, and e-mobility initiatives.
  • Emphasis will be on increasing funding for renewable projects, supporting domestic manufacturing, and enhancing skill development.
  • The budget also focuses on accelerating the National Green Hydrogen Mission, promoting sustainable finance, and fostering fiscal efficiency.
  • Measures include GST reforms, subsidies for e-mobility, financial support for DISCOMs, and incentivizing domestic oil and gas exploration.
The upcoming Union Budget 2025 in India is set to usher in significant changes in the energy sector, with a strong emphasis on promoting sustainable growth. The budget is expected to prioritize accelerating the adoption of renewable energy, green hydrogen initiatives, tax reforms, and the advancement of e-mobility and energy storage solutions. To achieve the 2030 target of 500 GW of renewable capacity, the budget may include increased funding for the renewable sector, viability gap funding for offshore wind and green hydrogen projects, solarization support for MSMEs, and incentives for domestic manufacturing of solar panels and batteries. Skill development will also be a key focus to strengthen the 'Make in India' initiative. The Union Budget 2025 is likely to introduce policies to facilitate a greener future by reducing emissions in high carbon footprint sectors through an inclusive energy transition policy. This policy will enable the seamless integration of various energy sources, facilitating a smooth transition to a sustainable energy matrix. Additionally, the budget is expected to bolster the National Green Hydrogen Mission with increased funding to position India as a significant player in the global green hydrogen market, driving innovation and infrastructure development. Tax reforms geared towards supporting renewable energy projects are anticipated, including potential GST reductions on hydrogen and uniform GST rates for renewable energy equipment. The budget is also expected to introduce incentives for the electric vehicle (EV) sector through FAME III and subsidies for energy storage and smart grid technologies. Financial support to DISCOMs will focus on infrastructure upgrades and modernization to enhance the power distribution network. While the budget emphasizes new energy forms, it also aims to enhance domestic oil and gas exploration by offering fiscal incentives to attract private sector investments. Sustainable finance measures are expected to refine the climate finance taxonomy, streamlining investment flows into sustainable ventures. Overall, the Union Budget 2025 is anticipated to pave the way for a greener and more resilient economy in India, setting the stage for sustainable growth and self-reliant energy development.
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