FM Nirmala Sitharaman Announces Budget 2025: INR 1,500 Cr for Solar Power, Big Push for Clean Energy

Finance Minister Nirmala Sitharaman presented the Union Budget 2025, focusing on renewable energy, clean tech manufacturing, and power sector reforms. The government has allocated INR 1,500 crore for the solar power grid sector.

To strengthen India’s clean energy sector, the government has introduced National Manufacturing Mission. This initiative will support local production of solar PV cells, electric vehicle (EV) batteries, motors and controllers, electrolysers, wind turbines, very high voltage transmission equipment, and grid-scale batteries. The aim is to increase domestic manufacturing, reduce imports, and build a robust supply chain for clean energy solutions.

The budget also focuses on electricity distribution and transmission. The government will incentivise reforms in power distribution and help states strengthen their transmission networks. States that undertake these reforms will be allowed additional borrowing of 0.5 percent of their Gross State Domestic Product (GSDP), giving them more financial flexibility.

A new Nuclear Energy Mission has been launched to boost India’s energy production. The government plans to develop at least 100 GW of nuclear energy by 2047 and will amend nuclear laws to allow private sector participation.

Additionally, INR 20,000 crore has been allocated for research and development of Small Modular Reactors (SMRs), which are compact nuclear power plants. At least five indigenous SMRs are expected to be operational by 2033.

To make clean energy more affordable, the budget has introduced tariff reductions on key renewable energy components. The import duty on solar cells has been reduced from 25 percent to 20 percent , while the duty on solar modules has been cut from 40 percent to 20 percent, making imports more cost-effective. Additionally, the tariff on smart electricity meters has been lowered from 25 percent to 20 percent, further supporting the expansion of efficient power management systems.

Here's what the renewable energy industry leaders are saying about the Budget:

Dr. Amit Paithankar, Whole-Time Director and CEO, Waaree Energies Ltd. says, "The Union Budget 2025 has strengthened India’s pledge to clean energy self-reliance by prioritising domestic manufacturing, backward integration, skilling, and research & development. The announcement of the National Manufacturing Mission, along with enhanced PLI schemes and tariff rationalisation for critical minerals will support the rapid growth of the entire renewable energy ecosystem. The inclusion of lithium-ion battery manufacturing incentives and duty exemptions on key raw materials like cobalt and lithium will accelerate India’s emergence as a global hub for energy storage solutions, furthering the EV and solar industries. The focus on clean-tech is heartening, as it reinforces the long-term relevance of renewable energy in India's economic and environmental future."

Vineet Mittal, Chairman, Avaada Group, comments, "As we embrace the Union Budget 2025, I am pleased by the bold vision it sets for our nation’s future. More than a financial plan, it is a transformative blueprint for infrastructure, manufacturing, and power—key drivers of India’s growth. Strategic initiatives like global manufacturing clusters and clean tech advancements under the National Manufacturing Mission will position India as a global industrial powerhouse. By promoting domestic production of critical components like wind turbines, solar components, electrolysers and batteries, we’re fostering innovation and sustainable growth. In the power sector, reforms promoting inter-state efficiencies and the Nuclear Energy Mission targeting 100 GW through indigenous small modular reactors are setting the foundation for a resilient, low-carbon energy future. Additionally, the INR 20,000 crore allocation to promote innovation in partnership with the private sector marks a pivotal step in positioning India as the next global innovation hub. This investment will drive advancements in renewables, green hydrogen, and advanced manufacturing, reinforcing India’s leadership in technology and sustainability."

Chirag Nakrani, Founder and MD, Rayzon Solar, comments, "Budget 2025 represents a significant milestone in India’s journey toward a greener and more sustainable future. Rayzon Solar welcomes the government’s focus on solar power, particularly through the development of the solar ecosystem. In line with this vision, Rayzon Solar is committed to expanding its capabilities by establishing solar cell production and scaling up solar module manufacturing capacity. These initiatives, coupled with increased support for domestic manufacturing, skill development, and R&D, will drive the widespread adoption of solar energy and strengthen India’s renewable energy sector. At Rayzon Solar, we remain committed to supporting India’s ambitious goal of achieving 500 GW of renewable energy capacity by 2030, leading with innovation, efficiency, and sustainability."

Sumant Sinha, Founder, Chairman and CEO, ReNew, says, "The Union Budget 2025 is a prudent plan that aligns with India's immediate need for consumption boost and medium-term focus on enhancing manufacturing competitiveness. It accelerates the clean energy transition with strong support for clean tech manufacturing and nuclear energy. The ₹20,000 crore allocation for nuclear energy and proposed legislative reforms demonstrate a forward-thinking approach to energy security and decarbonization. The National Manufacturing Mission and adjusted duties on batteries are key steps toward strengthening domestic clean energy manufacturing. Additionally, the target of 10,000 fellowships for research, including clean tech, positions India to lead in sustainable energy while boosting both economic and environmental resilience."

D. V. Manjunatha MD and Founder, Emmvee Group, commented, "The Union Budget 2025-26 sets a progressive and growth-oriented roadmap, reinforcing India's commitment to economic strength, sustainability, and innovation. With a clear focus on research and development in advanced solar technologies, this budget signals India's intent to lead the global solar industry. Investments in innovation, coupled with infrastructure expansion and Viability Gap Funding, will accelerate domestic manufacturing and ensure we remain at the forefront of the evolving global solar market. A strong emphasis on R&D is pivotal in driving efficiency, cost reduction, and next-generation solar solutions, making India a true leader in the clean energy transition."

The Union Budget 2025-26 reinforces the government’s commitment to energy storage, domestic manufacturing, and a resilient supply chain. The push for grid-scale batteries, reduced tariffs on critical minerals, and incentives for local battery production will accelerate renewable adoption while strengthening India’s position as a global clean energy leader. At Fluence, we recognize battery energy storage as the backbone of the clean energy transition—ensuring seamless renewable energy integration, long-term energy security, and a future-ready grid”, says Dhanya Rajeswaran, Global Vice President and Country Managing Director for India, Fluence. 

Divyesh Savaliya, Chairman & MD, Onix Renewable Limited, comments, “The Union Budget 2025 has set the stage for the self-reliance-led growth in the country’s renewable energy sector in line with the goal to achieve 500 GW of non-fossil fuel energy by 2030. With a strong emphasis on domestic value addition, the government's focus on solar PV cells, EV batteries, motors, and controllers will significantly reduce reliance on imports and foster self-sufficiency in critical clean technologies. The introduction of the National Manufacturing Mission to support domestic production of EV batteries and solar panels is a strategic move that will not only enhance India’s manufacturing capabilities but also drive cost efficiencies, supply chain resilience, and global competitiveness. By encouraging backward integration and technology-driven advancements, these measures will catalyze innovation, attract investments, and create a robust ecosystem for clean tech manufacturing. As India moves towards its net-zero goals, such initiatives will play a crucial role in accelerating renewable energy adoption, ensuring energy security and diversifying the renewable energy portfolio.”

Vinay Thadani, Director & CEO GREW Solar, shares, “The budget for 2025-2026 presented by the Finance Minister is a testament to the Government's commitment to move towards renewable energy for Viksit Bharat by 2047. The idea of a new manufacturing mission under the ‘Make in India’ initiative will support small, medium, and large industries through comprehensive policy backing and a detailed framework. The mission aims to create an ecosystem for solar PV cells, electrolysers, and grid-scale batteries. This will help expedite the development of the renewable energy sector, which will help in employment generation, reduce the cost of the panels, and focus on research and development. We are also extremely grateful to FM for simplifying income tax and putting additional money in the hands of the middle class. This will boost the consumption and wheels of the economy.”

Akshat Jain, CEO, KLK Ventures, shares, "The government's allocation of INR 1,500 crore to the solar power grid segment in the 2025 budget is a commendable step towards a sustainable future. This investment not only accelerates our transition to renewable energy but also underscores the nation's commitment to environmental stewardship. At KLK Ventures, we are inspired by this initiative and remain dedicated to pioneering innovative solar solutions that align with India's green energy goals."

Sanchit Sekhwal Goyal, Director, Su-Kam Power Systems Ltd., comments, "We welcome the 2025 Union Budget’s commitment to sustainable energy and employment generation. The announcement of a policy document on energy transition pathways is a crucial step towards a greener and self-reliant India. By emphasising sustainability and job creation, the government is paving the way for innovation and growth in the renewable energy sector. Additionally, the exemption of 35 more capital goods for EV lithium-ion battery manufacturing from customs duty will significantly boost local manufacturing and support the transition to clean energy. This initiative will accelerate clean energy adoption, strengthen local manufacturing, and create new opportunities in the power ecosystem."

Tanya Singhal, Founder of Mynzo Carbon & SolarArise, says, "The 2025 Union Budget reinforces India’s commitment to a sustainable future by fostering clean tech manufacturing, expanding nuclear energy capacity, and investing in renewable energy solutions. Initiatives to boost domestic production of solar PV cells, EV batteries, and electrolysers will accelerate our transition to a net-zero economy. The announcement of a Nuclear Energy Mission and support for Small Modular Reactors mark a bold step towards energy security and decarbonisation."

Rajinder Kaul, Chairman and Managing Director of Sharika Enterprises, comments,  "We applaud the 2025 Union Budget for its strong emphasis on renewable energy, solar power, and infrastructure development. The government's commitment to expanding clean energy solutions, including support for solar projects, aligns with Sharika Enterprises' vision for a sustainable future. Additionally, the focus on enhancing infrastructure and supporting MSMEs will strengthen India's renewable energy sector, create more opportunities for innovation, and drive economic growth, making this Budget a crucial step towards a greener and more self-reliant India."

AK Tyagi, Founder, Chairman & Managing Director of Nuberg Engineering Ltd. says, “I congratulate the government on a forward-looking Union Budget 2025-26 that prioritises energy security and sustainability. The ambitious Nuclear Energy Mission (100 GW by 2047) and the 500 GW renewable energy goal by 2030 reinforce India’s green future. Increased incentives for green energy, MSME solarisation, and domestic manufacturing will boost industries and job creation. The budget’s emphasis on hydrogen as a clean fuel aligns with India’s energy strategy. Support for green hydrogen production, industrial decarbonisation, and ammonia-based solutions will drive innovation and sustainability. Investment in infrastructure and emerging technologies will further accelerate the energy transition. With strong policies and financial backing, this budget sets the stage for India’s leadership in sustainable energy.”

Bikesh Ogra, MD and CEO, Jakson Green, expresses, "It seems that the budget was favorable to the clean energy sector.Make in India mission will establish India as a global renewable energy hub by reducing import dependence, creating jobs. Crucially, the budget emphasises power sector reforms, incentivising states to modernise distribution and transmission infrastructure i.e essential for seamlessly integrating RE sources into the grid and ensuring a stable power supply. The proposed PPP model for infrastructure development, coupled with substantial interest-free loans, will catalyse investments in RE projects. The announcement of the Nuclear Energy Mission, with its focus on SMR R&D and a target of 100GW by 2047, demonstrates a balanced approach to clean energy. While solar, wind, and green hydrogen will be key, nuclear energy can play a complementary role in providing baseload power. The proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, along with greater private sector participation, are positive steps. We are also encouraged by the government's commitment to Ease of doing business. Streamlining approvals for M&A, combined with a modern regulatory framework, will further support the growth of the RE sector."

Naveen Khandelwal, CEO of BrightNight India says, "The FY26 Budget marks another chapter in India’s growth story—one where energy security, manufacturing, and innovation get decent attention. Over the years, budgets have steadily strengthened the foundation for a self-reliant energy ecosystem, and this one builds further momentum. A sharper focus on domestic supply chains, critical minerals, and clean tech manufacturing—solar PV, EV batteries, and electrolysers—underscores a clear intent to be Atmanirbhar amid rising geopolitical uncertainties while leveraging comparative advantages."

Atanu Mukherjee, CEO, Dastur Energy, comments, “The government's latest budget rightly emphasizes strengthening India’s power infrastructure and clean technology manufacturing—critical steps toward an affordable, resilient and sustainable energy future. With India targeting 500 GW of non-fossil fuel capacity by 2030 and renewables already contributing over 40 percent of installed capacity, ensuring 24/7 affordable, reliable and clean power requires integrating dispatchable sources such as hydro, gas, coal, nuclear and energy storage into the electricity system. The budget’s focus on intra-state transmission expansion and financial incentives—allowing states to borrow an additional 0.5 percent of GSDP linked to power sector reforms—will directly enhance grid reliability, reduce transmission losses, and improve power distribution efficiency. These measures will create a more flexible and resilient grid capable of seamlessly integrating intermittent renewable sources, balancing supply and demand, and minimising outages. The budget also complements the National Manufacturing Mission’s push for domestic EV battery and solar panel production. These measures will reduce import dependence, create jobs, and fortify domestic supply chains while accelerating the adoption of electric vehicles (EVs) and clean energy technologies. By driving down carbon emissions and supporting industrial growth, these reforms position India’s power sector as a cornerstone of both economic development and the transition to a low-carbon future.”

Neerav Nanavaty, CEO, BluPine Energy, says, "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.”

Avantika Gupta, CEO, OPG Power Ventures, shares, “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 realizing 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."

Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd., shares, “AXITEC applauds the Union Budget 2025-26 for its visionary support of India’s clean energy transition, particularly through the National Manufacturing Mission aimed at boosting local production in key sectors like solar energy and electric vehicles. The government's commitment to fostering a robust ecosystem for manufacturing EV batteries, solar PV cells, electrolysers, and grid-scale batteries is a crucial step toward strengthening India’s energy security while supporting sustainable growth. By prioritising clean tech manufacturing, the budget lays a solid foundation for a greener, more self-reliant future. Furthermore, the announcement of a Nuclear Energy Mission, with a dedicated INR 20,000 crore outlay for the research and development of Small Modular Reactors (SMRs), reflects a forward-thinking approach to meeting India’s energy needs. This, alongside plans to operationalise five indigenously developed SMRs by 2033, is a bold move towards diversifying India’s energy portfolio and accelerating its transition to clean, reliable power."

Girish Tanti, Vice Chairman, Suzlon, comments, "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.”

Gautam Das, Founder and CEO, Oorjan Cleantech, says, "The Union Budget 2025-26 reinforces India’s renewable energy ambitions with an additional INR 10,000 crore allocation, alongside a target of 5 million rooftop solar installations under the PM Surya Ghar scheme within the next year, boost to battery technology and further focus on improving transmission infrastructure. The budget also re-emphasises domestic manufacturing and earmarks gap funding for 1 GW of offshore wind projects to accelerate clean energy expansion. We welcome these measures, and further stress the importance of faster implementation with clear timelines to achieve tangible impact. Price volatility in solar panels has been a big challenge, and any steps to stabilise supply chain logistics and pricing would be a great help."

SK Gupta, Director and CFO, AMPIN Energy Transition, shares, "Budget ‘2025’ is a welcome growth oriented budget aiming to provide transformative reforms to critical sectors of both fiscal and core development of the economy. ‘National manufacturing mission’ with continued focus on ‘Cleantech’ will further help diversify manufacturing across states, creat jobs and make a larger contribution to national GDP in coming times. Relief in personal taxation limits is again a welcome change and is expected to act as a catalyst- promote both savings and consumption in the economy, in coming times."

Dhiman Roy, CEO and Director,  GreenH Electrolysis Pvt. Ltd. says, “An interesting budget focussed on accelerating growth, securing inclusive development and invigorating private sector investment. The support for clean tech manufacturing, which includes domestic manufacturing of electrolysers under the National Manufacturing Mission, to further “Make in India”, could be seen as a positive step for India in its energy transition efforts. The easing of import duties on critical minerals not available in India is expected to boost the manufacturing sector and create new job opportunities for our youth. While the industry had hoped for subsidies and mandates for green hydrogen in blending & purchase obligation for some sectors which would have created demand, we remain confident in the value proposition of green hydrogen in India’s clean energy landscape and look forward to continued support from the Government.”

Deepak Sharma, Zone President- Greater India and MD & CEO, Schneider Electric, comments, "The National Manufacturing Mission, focused on cleantech and 'Make in India for the World,' holds immense potential to transform our manufacturing landscape. 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."

Saurabh Kumar, Vice President - India, GEAPP, shares, “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.”

Venkatesh R., Managing Director at Wärtsilä India, says, “The government's proactive measures in this year's budget, particularly the support for renewable energy projects and the promotion of green hydrogen, represent a significant step forward in India’s energy transition. The focus on domestic manufacturing and grid modernization will not only enhance energy security, but also create a robust ecosystem for sustainable growth. Additionally, the tax incentives for renewable energy will drive further investment, accelerating the shift to clean energy solutions."

Parag Sharma, CEO & Founder of O2 Power & President at WIPPA, says, "The Union Budget for 2025-26 reaffirms India's commitment to clean technology manufacturing with particular focus on building India’s own ecosystem for solar PV cells, EV batteries, electrolysers, grid scale storage, and wind turbines. While we will need to wait for the details of this announcement, it is evident that the government wants to significantly reduce dependence on imports in the coming years and boost manufacturing of clean energy equipment. This measure now needs to be backed by action on ground as the share of renewable energy in our overall energy mix rises steadily. Further, a domestic ecosystem will help India accelerate capacity addition and ensure we first attain 500 GW by 2030 and then 1800 GW by 2047. Beyond these measures to boost renewable energy sector, we also need credible measures to address challenges such as land acquisition. A comprehensive approach that includes land reforms, grid security, and faster execution of power purchase agreements is imperative to accelerate India's clean energy transition."

Kapil Garg, Managing Director, Asian Energy Services Limited, says, “We applaud the Government and Hon'ble Finance Minister, Smt. Nirmala Sitharaman on presenting a favourable budget for the manufacturing and infrastructure segment. Key duty exemptions on critical minerals such as cobalt, lithium-ion battery scrap, lead, and zinc are poised to strengthen domestic manufacturing. The allocation for research, development, and innovation will accelerate advancements in energy efficiency and aims to secure long-term energy stability. The policies should attract private sector participation and foreign direct investment in energy projects, will enhance India’s energy security and reduce import dependency."

Naresh Mansukhani, CEO, Juniper Green Energy, comments, "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 GW 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 INR 1,500 crore 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 INR 2,369.13 crore in 2021-22 to INR 3,304.03 crore in 2022-23. Even in 2020-21, when the allocation stood at INR 2,449.65 crore, the sector received substantial backing. This continued investment highlights the government's long-term vision for clean energy adoption." 

Ratul Puri, Chairman, Hindustan Power, shares, "We applaud the Union Budget’s progressive measures aimed at accelerating India’s energy transition and achieving net-zero emissions by 2070. The focus on creating a ‘Make in India’ ecosystem in clean tech manufacturing including solar PV cells, electrolysers for green hydrogen production, and grid-scale batteries will enhance renewable energy integration and grid stability, while incentives for electricity distribution reforms promise to improve DISCOM efficiency and reduce losses. The ambitious target of 100GW of nuclear energy by 2047, supported by public-private partnerships, highlights the commitment to diversifying India’s energy mix and accelerating the energy transition. Additionally, mining sector reforms, including the sharing of best practices and the institution of a State Mining Index, will ensure sustainable resource utilisation. The three-year pipeline for Public-Private Partnership projects will fast-forward India's infrastructure development, ensuring long-term sustainability while driving innovation."

Kshiteej Mishra, Practice Member, Mobility Energy and Transportation at Praxis Global Alliance, says, "The Union Budget 2025 signals a transformative shift in India's energy landscape with bold reforms in electricity distribution and nuclear energy. The provision allowing states an additional 0.5 percent borrowing of GSDP, contingent on power sector reforms, will incentivise much-needed efficiency and modernisation in electricity distribution. Recognising the critical role of nuclear energy in India's energy transition, the government has committed to developing at least 100 GW of nuclear power by 2047. Key legislative amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act will open doors for private sector participation, fostering innovation and investment. The launch of the Nuclear Energy Mission, with an INR 20,000 crore outlay for R&D on small modular reactors, is a significant step towards energy self-sufficiency. The plan to operationalise five indigenously developed small modular reactors by 2033 underscores India's commitment to sustainable and scalable nuclear power solutions."

Ankit Hakhu, Director, Crisil Ratings Ltd., comments, “The scrapping of basic customs duty on import of lithium-ion battery scrap and capital goods – or the machinery used to manufacture lithium-ion batteries – will strengthen the domestic battery storage ecosystem. The development of battery-backed renewable projects, which are expected to form over 33 percent of renewable power capacity additions in India over the next 3-5 fiscals, will benefit by having greater control over costs, quality and supply of battery systems.”

Varchasvi Gagal, Managing Director & CEO of Datta Infra, has expressed appreciation for the Union Finance Minister Nirmala Sitharaman's initiative to promote solar cell manufacturing in the Union Budget 2025. He views this move as a strategic step towards creating a robust manufacturing ecosystem in India, supported by the Production-Linked Incentive (PLI) scheme. According to him, this initiative will have a two-fold impact. Firstly, it will enhance India's self-reliance in solar cell production, aligning with the government's vision of Atmanirbhar Bharat. Secondly, it will significantly accelerate the country's progress towards achieving its ambitious 500-gigawatt renewable energy target by 2030. By promoting in-house module assembly and cell manufacturing, India can reduce its dependence on imports and develop a sustainable renewable energy ecosystem.

Arvind Kumar, Founder, Exolar Energy, says, "The budget 2025, marks a critical step to enhance the country's renewable energy landscape, encouraging India's focus on sustainability and the growth of MSMEs. With a target of 500 GW in non-fossil fuel capacity by 2030, increased financial backing and investment thresholds for MSMEs will enable emerging businesses like ours to scale operations, drive technological advancements, and contribute to the broader clean energy transition. The emphasis on cleantech within the National Manufacturing Mission will encourage local solar cell production, lessen reliance on imports, and position India as a key player in the global solar market. The initiative of investing in the Nuclear Energy Mission will work alongside solar advancements in accelerating the country's net-zero ambitions. Given the anticipated 15 percent+ annual growth in the domestic solar market and the expectation of over USD 200 billion in investments in renewable energy by 2030, these initiatives provide a strong platform for startups to innovate and expand. This policy framework paves the way for a more sustainable, energy-secure future, driving fresh opportunities for innovation, employment, and long-term economic stability."

Shekhar Singal, Managing Director, Eastman Auto & Power, comments, “The Union Budget 2025 significantly advances India's renewable energy sector with the launch of the Clean Tech Mission, focusing on Solar PV, EVs, and Batteries, alongside the National Manufacturing Mission. The announcements underscore the government's dedication to strengthening ‘Make in India’ and becoming Aatmanirbhar in generation as well as storage of clean energy. This approach aims to reduce import reliance and build a robust domestic industry. From a Solar and Last Mile e-mobility category perspective, the budget with reduction in the BCD for cells and modules prioritizes scaling up of the domestic manufacturing capacities for key components for Solar. The addition of 35 capital goods related to Lithium batteries for EV reduces capital expenditure for setting up manufacturing plants thereby stimulating growth. These strategic measures set India on a path to achieve its 500 GW renewable energy target by 2030, paving the way for energy independence and a cleaner more sustainable future."

Tarun Sawhney, Vice Chairman and Managing Director, Triveni Engineering & Industries Ltd., shares, "The Union Budget 2025 reaffirms the Government’s unwavering commitment to creating a ‘Viksit Bharat,’ with a strong focus on Garib, Youth, Annadata, and Nari. The budget has laid the foundation for a more inclusive and sustainable future by strengthening India’s agricultural ecosystem and accelerating the nation’s clean energy transition. As a leading player in sugar, ethanol and water management, our Company remains dedicated to advancing these national priorities. With a sharp focus on circular economy principles, we will continue to work alongside farmers, policymakers, and industry partners to build a greener, more self-reliant India.”

Premchand Chandrasekharan, Partner, Avalon Consulting, says, "The 2025 budget represents a significant step toward aligning India’s development trajectory with sustainability goals. The substantial investments in solar, wind, and hydropower projects are set to reduce carbon emissions and fossil fuel dependency, directly contributing to environmental sustainability. Furthermore, the National Green Hydrogen Mission and battery storage systems will support the transition to cleaner energy and help stabilize the renewable energy supply. The introduction of a Nuclear Energy Mission and investments in small modular reactors (SMRs) aim to provide low-carbon base load power, reducing reliance on fossil fuels."

Sameer Gupta, Chairman of Jakson Group, says, "The recent budgetary focus on escalating infrastructure investment, particularly through the allotment of INR 1.5 lakh crore for state capital expenditure, underscores a strategic move towards strengthening India's core sectors. The commitment of INR 10 lakh crore for new projects under the Asset Monetization Plan 2025-30 promises significant enhancements in energy and infrastructure capabilities. Additionally, the emphasis on renewable sectors with initiatives in solar energy and biofuels aligns with industry needs for sustainable development. The new manufacturing mission under Make in India is a defining step toward building India’s self-sufficiency in solar, hydrogen, and storage technologies. By fostering an integrated ecosystem, we are not just reducing import dependence but creating a foundation for India to lead the global clean energy revolution."

Nikhil Chandwani, Co-founder, Santerra Industries, comments, "The government's post-budget focus on the energy sector, particularly the National Nuclear Energy Mission, marks a significant step in India's energy transition strategy. With the aim to generate 100 GW of nuclear energy by 2047, this initiative will help companies leverage reliable and sustainable power sources for their operations, especially data-intensive sectors. The announcement of INR 20,000 crore for a research and development unit dedicated to Small Modular Reactors (SMRs) will not only enhance India's energy capacity but also drive technological innovation in the nuclear sector. By operationalizing at least 5 indigenously developed SMRs by 2033, the initiative presents new opportunities for the private sector, creating a thriving ecosystem for nuclear energy. Moreover, the proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act signal the government's intent to collaborate with private enterprises, fostering growth, investment, and job creation. This push towards clean, scalable energy sources is particularly timely, as tech giants increasingly seek reliable energy to power AI-driven data centers, ensuring that India remains at the forefront of both energy and technology innovation."

Sachidanand Upadhyay, MD, Lord's Mark Industries Limited, says, "The National Manufacturing Mission announced in the Union Budget 2025 is a significant step towards bolstering India's clean tech manufacturing ecosystem. By enhancing domestic production of EV batteries, solar PV modules, wind turbines, and grid-scale batteries, this initiative will reduce dependency on imports and strengthen India’s position in the global renewable energy supply chain. The move complements the existing PLI schemes and will encourage backward integration, enabling Indian manufacturers to scale up operations efficiently. At the Renewable Energy arm of Lord’s Mark Industries, we are committed to leveraging these policy-driven opportunities to accelerate innovation, localize clean energy solutions, and contribute to India’s transition towards a sustainable and self-reliant future. Aligning with India's commitment to achieving net-zero emissions by 2070, Lord's Mark Industries is contributing significantly to this vision, recently securing a project to set up 300 MW of grid-connected rooftop solar projects in Uttar Pradesh."

Vijay Karia, Chairman and Managing Director of Ravin Group, comments, “This budget is not just a policy announcement; it is a blueprint for India's industrial and economic transformation. It signals a shift from incremental progress to structural acceleration, creating a business environment where companies are not just surviving but scaling to global benchmarks. Infrastructure is no longer just about roads and railways—it is about building the foundation for India’s industrial dominance. Large-scale electrification, power transmission upgrades, and rural connectivity will generate unprecedented demand for advanced electrical solutions, high-efficiency cables, and resilient grid networks. Companies that position themselves in these high-growth sectors today will dictate the market tomorrow. The real game-changer, however, is green energy. The world is moving away from traditional energy sources, and India must lead, not follow. The INR 1.5 lakh crore investment in renewables and the removal of duty barriers on critical minerals is a direct call to action for businesses—if you're not pivoting towards sustainability, you’re already behind. The next decade will belong to companies that can integrate clean energy, smart grids, and energy-efficient solutions into their business models."

Sanjay Choudhari, Chairman, SBL Energy, comments, "The government’s renewed focus on manufacturing and energy security marks a transformative shift for India’s industrial landscape. The National Manufacturing Mission under the Make in India initiative is a timely and much-needed move that will strengthen small, medium, and large industries. We see this as a crucial step toward building a robust supply chain for mining and infrastructure, enhancing domestic production of critical materials, and reducing import dependency. The Nuclear Energy Mission, with its ambitious target of 100 GW capacity by 2047, is a bold move toward energy transition. The INR 20,000 crore investment in small modular reactor R&D and incentives for capacity augmentation will create opportunities for energy-intensive industries, including mining and explosives. Reliable and scalable power sources are fundamental to driving industrial growth, and this initiative is a step in the right direction. At SBL Energy, we are optimistic about these developments and look forward to leveraging these opportunities to contribute to India’s self-reliance in mining, energy, and industrial explosives."

Manoj Upadhyay, Chairman ACME Group and member IESA, states, "The Union Budget 2025-26 is a testament to the government’s strong commitment to accelerating India's clean energy transition. The significant focus on renewable energy, including increased funding for solar and wind projects and the continued push for green hydrogen, will pave the way for a sustainable and self-reliant energy ecosystem. The incentives for electric mobility and infrastructure development further strengthen India’s position as a global leader in clean energy. We appreciate the government’s progressive reforms and policy measures, which will drive innovation, attract investments, and create new opportunities in the renewable sector. This budget truly aligns with India's vision of achieving energy security and a net-zero future."

P. Venkat Reddy, National President of The Solar System Integrators Association (TSSIA), shared, "We welcome the Indian government's efforts to boost the solar sector in the National Budget 2025. The budget aims to strengthen domestic value addition and enhance India's manufacturing ecosystem for solar cells and modules. Some key highlights of the budget that we appreciate include: Duty Cuts: Reduction of import duty on solar cells from 25 percent to 20 percent and on solar modules from 40 percent to 20 percent, National Manufacturing Mission: Introduction of a mission to support local production of solar PV cells, EV batteries, motors, and controllers. Incentives for Domestic Manufacturing: Provision of incentives, including a 0.5 percent additional borrowing allowance for states that undertake reforms. These measures are expected to provide a significant boost to the solar sector in India, promoting domestic manufacturing and reducing reliance on imports.

Pratik Agarwal, Managing Director, Sterlite Power and Chairman, Serentica Renewables, says, “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 & Distribution (T&D) that needs the most attention.” 

Simarpreet Singh, Executive Director and CEO, Hartek Group, states, "India's dedication to renewable energy and manufacturing is emphasized 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 INR 1 lakh crore urban challenge fund."

Rahul Munjal, Chairman and Managing Director, Hero Future Energies, shares, “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 galvanize the economy. The Budget also prioritizes India’s clean energy ambitions by announcing policy support to boost grid storage infrastructure and production of electrolyzers, wind turbines, solar cells, batteries, and very high voltage transmission equipment. The rationalization 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.“

Rajeev Kashyap, SVP and General Manager for Nextracker India, Middle East and Africa, comments, "We welcome the Budget 2025-26, a significant step towards cementing India’s leadership in clean technology. The focus on boosting domestic manufacturing of key components like grid-scale batteries, electrolysers, and solar cells is a critical enabler for the renewable energy sector. This will not only reduce dependence on imports but also drive down costs, making clean energy more accessible. The government's parallel focus on strengthening the electricity grid, including enhanced intrastate transmission capacity, is equally critical for ensuring the success of these renewable energy goals by driving operational efficiency and financial stability within the power sector. At Nextracker, we are excited by the emphasis on solar innovation, particularly solar trackers, which are critical for maximizing energy yield and accelerating the growth of renewable energy. With our robust R&D capabilities, including the newly inaugurated Centre for Solar Excellence in Hyderabad, and our firm commitment to 'Make in India,' we are uniquely positioned to contribute to this vision. We are ready to play a pivotal role in supporting India achieve its ambitious target of 500 GW of renewable energy by 2030."

Anmol Singh Jaggi, Chairman and Managing Director, Gensol Engineering Ltd., says, "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, electrolyzers, 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 prioritizes 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.”

Rajiv Ranjan Mishra, Managing Director, Apraava Energy, shares, “The Union Budget 2025 builds on the strong foundation built by its predecessors for accelerating India’s energy transition, boosting domestic manufacturing capabilities, and streamlining regulatory policies to promote ease of doing business. Further push to the Revamped Distribution Sector Scheme and the proposed incentives for States to enhance electricity distribution and intrastate transmission capacity will boost the financial health and operational efficiency of discoms. The incentive of additional borrowing allowance will encourage States to ensure rapid and efficient implementation of these projects. Building indigenous manufacturing capabilities in key sectors is crucial for energy security. We welcome the announcement of the National Manufacturing Mission under the ‘Make-in-India’ initiative to support the manufacturing of clean tech, EV batteries, motors, wind turbines, grid-scale batteries, and solar panels. The exemption of Li-ion batteries and critical minerals from basic customs duty will help in ensuring that India’s energy transition is not impeded in the meantime."

Sajjan Jindal, Chairman and Managing Director, JSW Group, says, "This budget provides more money in the hands of the middle class which will help boost consumption. A change in tax slabs is a welcome step. The government has maintained its thrust on capex though the spend of Rs 11.2 lakh crore is lower than a spending of around 13 lakh crores that I was hoping for, based on the past trend. But still, capex spend is at a robust level and will give a boost to the core sectors. The boost to MSMEs, by increasing investment and turnover limits and expanding credit guarantees, is a very important step towards increasing the contribution of manufacturing sector in our economy."

Anish De, Global Head of Energy, Natural Resources and Chemicals (ENRC), KPMG shares, "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 decarbonization 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."

Anvesha Thakker, Partner, Business Consulting and National Lead for Clean Energy at KPMG in India, states, "This budget provides a decisive push for clean energy, focusing on the critical pillars of “Make, Innovate, and Expand.” It effectively addresses core challenges while unlocking immense opportunities in the sector. A key highlight is the focus on clean tech supply chains, with a manufacturing mission for building domestic ecosystem for all critical clean technologies including transmission equipment. Duty exemptions for essential minerals like cobalt powder, lithium-ion battery scrap, and lead, alongside capital goods exemptions for 35 additional EV battery components, will strengthen domestic value chains. The Nuclear Energy Mission, with relaxed regulations and civil liability norms, is a game-changer for clean energy growth and India’s decarbonization ambitions. It provides a stable baseload alternative, essential as wind and solar expansion can eventually scalability challenges. Budget also emphasizes technology, education, and skilling—through the Deep Tech Fund of Funds, AI-driven education, and national centers of excellence—enhances innovation and workforce readiness which are critical for India’s global leadership in this space."

Baroruchi Mishra, Partner and Group CEO, Nauvata Energy Transition (NET) Enterprise, says, "The budget could be described as 'reformist', but perhaps not bold enough. Some key enablers of growth in the budget include a focus on mining for rare earth metals. This will help reduce dependency on China, strengthening domestic capabilities. The reclassification of MSMEs to scale up manufacturing supports both employment growth and productivity enhancement. However, delivery of this intent will need to be closely monitored, as bureaucracy continues to slow progress in this sector. The INR 20,000 crore allocation for private-sector-led research is much-needed. While we may still be catching up with the West and China, this marks a recognition of its importance. The renewables push is promising, though incremental. Could we have been bolder, for example, by making 2G ethanol production more economically viable with higher prices? This could help mitigate the current trend of diverting sugar production for ethanol, while also fostering a new manufacturing sector for biofuels. Brazil could serve as a model here."

Sunil Singhvi, President, IEEMA discusses, “We commend the budget presented today by Finance Minister Nirmala Sitharaman, particularly for placing the power sector among the six key priority areas for the year ahead. The government’s goal to reduce the fiscal deficit to 4.4% of GDP for the 2025-26 financial year, down from the revised estimate of 4.8% for the current year, reflects a continued effort toward fiscal consolidation. Additionally, the revision of income tax slabs and rates for the middle class may contribute to increased household consumption and investments. The focus on power sector reforms, particularly in incentivising distribution reforms and improving intra-state transmission systems, is a positive development. The proposal to allow states to borrow an additional 0.5% of their GSDP, contingent upon implementing these reforms, is a practical approach that addresses immediate infrastructure needs while encouraging long-term sustainability in the sector. The government’s initiative to set up five National Centres of Excellence for Skilling is a step toward providing youth with training for emerging sectors. This aligns with the 'Make in India' vision and aims to enhance the skill set of the workforce for future growth.”

Vikram Gandotra, President (Elect), IEEMA & Chairman – ELECRAMA 2025 says, “IEEMA acknowledges the budget announcement setting the path for India to become a 'Viksit Bharat' by 2047. It includes a target of 100 GW of nuclear power capacity by 2047, promoting nuclear energy as an alternative to fossil fuels for base load demands. To boost R&D in the sector, the government has set aside Rs 20,000 crore investment for a Nuclear Energy Mission focusing on small modular reactors (SMRs). This could drive cleaner, safer nuclear energy solutions and aid in India’s sustainable energy transition. We also welcome the government’s move to strengthen the focus of the Make in India initiative with a transformative manufacturing mission that will position India as a leader in sustainable manufacturing. Boosting Clean tech in India, the budget supports the industry with a framework to produce solar pv cells, electrolysers, and grid-scale batteries, that will bring innovation and self-reliance in manufacturing.”

Siddharth Bhutoria, Vice President, IEEMA & Vice Chairman – ELECRAMA 2025 says, "In the Budget 2025, Finance Minister Nirmala Sitharaman emphasized the government's commitment to prioritising the MSME (Micro, Small, and Medium Enterprises) sector. The government has proposed a significant increase in the investment limit for MSMEs, raising it by 2.5 times, and has also doubled the turnover limit for MSME classification. These provisions are expected to accelerate India's manufacturing growth, foster innovation within the MSME sector, and create job opportunities for the country's growing youth population. The Jan Vishwas Act to decriminalize certain business offences is going to boost Ease of Doing Business. To support aspiring entrepreneurs, a new round of the Fund of Funds for Startups scheme has been introduced with a ₹10,000 crore corpus. This initiative aims to provide the necessary financial boost to emerging ventures, strengthening India's position as a global hub for innovation and entrepreneurship.”

"The Union Budget 2025-26 has taken significant strides in strengthening India's clean technology ecosystem. The launch of the National Manufacturing Mission and the Clean Tech Mission, as part of the Make in India initiative, will accelerate domestic production of EV batteries, solar panels, and other sustainable solutions. This will reduce import dependency, enhance India's global competitiveness, and drive innovation, investments, and job creation while supporting the country's net-zero ambitions. The proposal to fully exempt Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, and other critical minerals is a crucial step toward securing raw materials for domestic manufacturing and building a self-sufficient supply chain. Additionally, the planned policy on recovering critical minerals from tailings will significantly benefit refining players like Attero. As India's only high-tech, end-to-end e-waste and lithium-ion battery recycler, Attero leverages its proprietary, globally patented technologies to extract over 18 critical metals in pure form, ensuring these materials are efficiently recovered and reintegrated into the manufacturing process. These measures will directly enhance Attero's resource recovery capabilities, drive sustainability, and support India's transition to a circular economy. Furthermore, the government's focus on strengthening the domestic electronics industry and developing a national framework for Global Capability Centers (GCCs) in Tier-2 cities will unlock new opportunities for skilled professionals, infrastructure development, and industry collaboration, further boosting demand for responsible e-waste management and recycling solutions.”, says Nitin Gupta, CEO & Co-founder, Attero.

The budget highlights the government’s commitment to clean energy, local manufacturing, and power sector reforms. While the lower allocation for solar power may raise concerns, the new initiatives for clean tech manufacturing, nuclear energy, and power distribution improvements signal strong support for India’s transi