Indian Economy News

Budget's focus on clean energy to push sector growth: Renewable Energy (RE) industry

  • IBEF
  • February 4, 2025

The Union Budget 2025-26 has been well received by the renewable energy industry, with experts praising its emphasis on clean power, domestic manufacturing, and sustainability. Key initiatives include the Rs. 20,000 crore (US$ 2.30 billion) allocation for nuclear energy, legislative reforms for energy security, and the Rs. 20,000 crore (US$ 2.30 billion) commitment to the PM Surya Ghar Muft Bijli Yojana for rooftop solar expansion. Industry leaders believe these measures will strengthen India’s position as a global clean energy powerhouse, drive innovation, and support self-reliance in solar technology by reducing import dependence. The government’s push for grid-scale batteries, electrolysers, and key components under the National Manufacturing Mission is also a crucial step toward cost-efficient renewable energy solutions. 

Experts further highlighted the importance of customs duty exemptions on lithium-ion battery scrap and critical minerals, enhancing domestic recycling and raw material availability. Increased loan limits for Micro, Small, and Medium Enterprises (MSMEs) and startups are expected to support business growth across industries. While these measures are welcomed, some industry leaders stress the need for land reforms, grid security, and faster execution of power purchase agreements to accelerate India’s clean energy transition. The budget is a strong enabler for renewable energy, fostering innovation, cost reduction, and a more sustainable energy ecosystem. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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