Budget 2025 is not just a financial blueprint; it is a declaration of India’s ambition to lead the global clean energy revolution. It is comprehensive, assertive and progressive, laying the foundation for a sustainable and self-reliant India. What makes this Budget truly remarkable is its focus on inclusivity. It is the people of India who emerge as the ultimate beneficiaries of these reforms. From farmers and factory workers to students and entrepreneurs, the Budget’s measures are designed to uplift every segment of society.
The introduction of the National Manufacturing Mission aligns seamlessly with the government’s ‘Make in India’ vision. By emphasising policy support for clean-tech manufacturing, including solar PV modules, EV batteries and wind turbines, the Budget ensures a robust domestic supply chain. Rationalised tariff structures and continued backing for the PLI scheme will bolster domestic production and reduce import dependency.
India’s commitment to renewables is evident in the ₹1,500 crore allocation for solar power (grid). The rooftop solar sector receives a substantial boost with ₹20,000 crore allocated for the PM Surya Ghar: Muft Bijli Yojana, almost double of last year’s Budget. This will translate to over 10.5 GW of solar installations, generating demand for 21 GW of domestically manufactured DCR-compliant solar cells. The PM Kusum Yojana has been allocated ₹2,600 crore to deploy 8 lakh solar pumps, reducing farmers’ reliance on fossil fuels and lowering operational costs.
With ₹48,396 crore allocated to the power sector, the Budget takes decisive steps toward energy security and grid modernisation. A key highlight is the ₹16,021 crore investment in the revamped distribution sector scheme, focusing on prepaid smart metering, system metering and infrastructure upgrades to enhance efficiency and financial health of discoms. To integrate renewable energy into the grid, ₹600 crore has been set aside for Green Energy Corridors, ensuring seamless evacuation of solar and wind power which would essentially feed into overall renewable EPC businesses. Additionally, the National Green Hydrogen Mission received a much-needed boost with ₹600 crore, doubling last year’s allocation, positioning India as a global leader in green hydrogen. The Budget’s focus on energy storage is particularly laudable. By offering duty exemptions on critical minerals like cobalt, lithium and zinc, and adding capital goods for EV and mobile phone battery manufacturing to the duty-exempt list, the government has taken a decisive step toward building a resilient energy storage ecosystem. This will not only bolster India’s EV industry but also enhance grid stability, enabling higher renewable energy penetration.
The announcement of a 100 GW nuclear power capacity target by 2047 and the establishment of a Nuclear Energy Mission with a ₹20,000 crore outlay for Small Modular Reactors is yet another visionary move. Another key takeaway is the emphasis on power sector reforms — a long-awaited move that will improve the financial health of electricity companies. The provision allowing additional borrowing of 0.5 per cent of GSDP for States that implement electricity distribution reforms is a pragmatic approach.
The Budget’s focus on export-led growth and integration into global supply chains is a clear signal of India’s ambition to become a global manufacturing hub. The Export Promotion Mission for MSMEs, coupled with sectoral targets and facilitation groups, will empower Indian businesses to compete on the world stage. This aligns perfectly with the vision of transforming ‘Make in India’ into ‘Make for India, Make for the World.’
By prioritising domestic manufacturing, energy storage, nuclear energy, skilling and R&D, the government has set the stage for a new chapter in India’s evolution — one where we not only meet our own energy needs but also lead the world in clean energy innovation.
