Budget 2026 Reactions: Views of clean energy industry stakeholders

The Union Budget 2026-27 aims at strengthening clean energy development, clean technology manufacturing, lithium-ion battery production, and tariff rationalisation. There has been a significant increase in budgetary allocations for the Ministry of New and Renewable Energy (MNRE) as well. For 2026-27, the MNRE has been allocated Rs 329.14 billion, up from Rs 265.49 billion in 2025-26. The allocation for the solar sector is Rs 305.39 billion in 2026-27, up from Rs 242.24 billion in 2025-26. The allocation for the Pradhan Mantri Krishi Urja Suraksha evam Utthaan Mahabhiyan programme is Rs 50 billion, and that of the PM Surya Ghar: Muft Bijli Yojana is Rs 220 billion in the 2026-27 budget. The allocation for the National Green Hydrogen Mission is Rs 6 billion. The total budgetary allocation for wind and other renewable energy sources (grid and offgrid hydro power) is Rs 5.51 billion, and that for the bioenergy programme is Rs 2.75 billion. In the budget, Rs 5.99 billion has been allocated for green energy corridors.

To reduce input costs, boost domestic manufacturing, and enhance export competitiveness, the basic customs duties have been reduced on several items. In the renewable energy sector, the duty on sodium antimonate used in the manufacture of solar glass has been cut from 7.5 per cent to nil. Additionally, specified capital goods required for the manufacture of lithium-ion cells for battery energy storage systems will now attract nil basic customs duty. Furthermore, the budget has also proposed to exclude the entire value of biogas while calculating the central excise duty payable on biogas-blended compressed natural gas. In the critical mineral space, the basic customs duty on monazite has been reduced from 2.5 per cent to nil. 

Senior Industry experts share their Budget 2026 reactions for the clean energy sector…

Rahul Munjal, Chairman and Managing Director, Hero Future Energies

I would like to congratulate the Hon’ble Finance Minister for rolling out a pragmatic yet visionary Union Budget, aimed at building a developed and self-reliant India. It sets a roadmap for inclusive, sustainable and accelerated economic growth, with a clear focus on robust infrastructure and connectivity, domestic manufacturing excellence, balanced regional growth and creation of a future-ready workforce. The government’s reform agenda marks a decisive shift from improving the ‘ease of doing business’ to accelerating ‘the speed of doing business’, through simplified regulations and technology-enabled approvals.

Targeted customs duty exemptions for lithium-ion cells, battery energy storage systems and key clean-energy manufacturing inputs will help scale domestic capacity and improve project viability. The commitment to carbon capture, utilisation and storage acknowledges the need for credible transition pathways for sectors such as power, steel, cement and refining, while long-term support for nuclear energy creates a stable framework for capital-intensive energy investments.

Sumant Sinha, Founder, Chairman and CEO, ReNew

Built like a roadmap designed for both sharp turns and long highways, the Union Budget 2026 delivers clarity and confidence in a world defined by rapid shifts and long‑term challenges. It balances the immediate need for employment generation among the youth with disciplined fiscal consolidation, ensuring stability without slowing momentum. By lowering or removing import duties on essential inputs and machinery, the Budget makes it cheaper and easier for India to build domestic manufacturing for strategic and export‑oriented products like batteries, semiconductor chips, garments, and apparels. Its focus on critical minerals, carbon capture and utilisation, and next‑generation nuclear technologies marks a decisive push into the energy‑transition future. Together, these measures signal a clear intent to build a resilient, competitive, and opportunity‑ready economy poised to lead in the next‑generation clean‑energy sectors.

Rajiv Ranjan Mishra, Managing Director, Apraava Energy

Union Budget 2026 reflects a balanced and forward‑looking approach to strengthening India’s energy ecosystem, with a clear focus on reliability, sustainability and long‑term system resilience.

Policy support for battery energy storage directly addresses priority requirements of grid reliability and renewable integration. The extension of customs duty exemptions on capital goods used for lithium‑ion cells to include BESS, along with duty relief on key inputs such as sodium antimonate for solar glass, will help improve cost structures and support the scale‑up of grid‑level storage infrastructure that is essential for a flexible power system.

The proposed Rs 200 billion outlay over five years CCUS further strengthens the transition pathway for emission‑intensive sectors such as power, steel, cement, refineries and chemicals. Enabling CCUS at scale allows critical infrastructure to decarbonise while continuing to meet growing energy and industrial demand.

Complementing these measures, the launch of India Semiconductor Mission 2.0, with an outlay of Rs 400 billion, reinforces the development of enabling technologies and domestic manufacturing capabilities that underpin modern energy systems. Taken together, the Union Budget 2026 provides a coherent and investment‑ready framework for building a reliable, future‑ready and competitive energy infrastructure.

Bikesh Ogra, Vice Chairman and Global CEO, Jakson Green Limited

This budget clearly places India on the international map as a serious long-term player in the global clean energy and manufacturing chain. The focus on capital expenditure, domestic manufacturing, critical minerals, and energy security indicates a clear shift from capacity building to global competitiveness.

From a corporate perspective, the policy consistency of infrastructure-driven growth and sustainable energy is a strong message to global investors and MNCs seeking stable, scalable, and technology-driven markets. With the diversification of global supply chains and the acceleration of energy transition globally, India is poised not only as a consumption market but also as a solutions destination for renewable energy, green manufacturing, and integrated EPC solutions.

For corporations operating at the nexus of clean energy and infrastructure, this budget has further reinforced confidence in India’s ability to deliver large-scale, export-quality, and future-ready energy solutions. 

Mahesh Girdhar, MD and CEO, EverEnviro Resource Management Pvt Ltd  

The Union Budget 2026 marks a defining step in India’s gas-based energy transition. The decision to mandate phased blending of CBG with CNG and PNG is a systems-level reform that embeds CBG into the mainstream gas ecosystem.

The exclusion of the biogas component from central excise duty on biogas-blended CNG significantly improves price competitiveness, while CBG blending delivers clear gains, lower carbon emissions, assured offtake, and stable income opportunities for farmers through agri-residue utilisation. Together, these measures provide the certainty needed to scale renewable gas infrastructure across India.

Chandra Kishore Thakur, Global CEO, Sterling and Wilson Renewable Energy Group

We feel that this budget has rightly prioritised India’s energy security, especially the increasing role of renewables towards fulfilling this objective over the long term. The relief in customs duty for the import of sodium antimonate used in the manufacture of solar glass is a step in the right direction. This move will reduce input costs for solar panel manufacturers and thereby augment domestic solar equipment production, giving an impetus to the entire sector in terms of Atmanirbharta.

 The extending of basic customs duty exemption for capital goods used for manufacturing Lithium-Ion Cells for batteries, and to those used for manufacturing Lithium-Ion Cells for BESS is also a welcome decision. We must remember that BESS significantly enhances the viability of solar power by addressing its intermittency and enabling efficient energy management. BESS stores excess solar generation for use during low-production periods, thereby augmenting overall system reliability and economics in the solar industry. With these new measures, we are certain that renewable energy will play a vital role in India’s sustainable development, powering economic growth while reducing dependence on imported fossil fuels.

Naveen Khandelwal, CEO, Yanara India 

Not all budgets are designed to deliver immediate stimulus. This one is clearly about strengthening the foundations and extending an invitation for foreign partnerships. Domestically, with relief front-loaded last year, the room for near-term adjustments was limited, and the modest ~9 per cent increase in public capex reflects a deliberate commitment to fiscal consolidation rather than expansionary optics.

On the energy front, the budget opts for structural depth over spectacle, easing duties on battery storage and solar inputs, extending support for nuclear capacity, backing critical minerals, committing Rs 200 billion to CCUS across core and carbon-intensive sectors, and realigning PFC and REC. Individually modest, together they consolidate the foundations of a more resilient and domestically anchored clean-energy ecosystem.

The emphasis on opening markets to foreign investment, scaling MSMEs, and advancing critical minerals and rare-earth ecosystems should gradually lift activity across the power and manufacturing supply chains, though the impact will be incremental in the near term. In a volatile global environment, a stronger consumption push could have complemented last year’s income-tax measures, and its absence is notable.

That said, the budget rests on a base of strong growth, low inflation, and macro stability. It prioritises reform over rhetoric and resilience over short-termism. While more could have been done on demand support, the intent and direction remain positive.

Surendra K Gupta, Executive Director and CFO, AMPIN Energy Transition 

The Union Budget 2026-27 reiterates the Government’s continued focus on energy transition, with specific emphasis on renewable energy and allied sectors. While certain positive measures have been announced, this budget falls short of fully addressing key expectations of the renewable energy industry.

Key positive announcements for the renewable sector include:

1. Customs Duty Rationalisation

• Reduction of Basic Customs Duty (BCD) from 7.5 per cent to NIL on Sodium Antimonate used in the manufacture of solar glass.
• NIL BCD on specified capital goods used for manufacturing lithium-ion cells for Battery Energy Storage Systems (BESS).

2. Carbon Capture, Utilisation and Storage (CCUS)

• An outlay of Rs 200 billion over the next five years proposed for CCUS, signalling intent to support decarbonisation beyond conventional renewables.

3. Energy Sector Financing

• Proposed restructuring of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC).

Given their sectoral focus, this is expected to improve availability of long-term financing for power and renewable projects at competitive rates, subject to further clarity on the restructuring framework.

Industry expectations and outstanding issues

While the above measures are encouraging, the industry believes that certain critical issues still need to be addressed through suitable amendments in the final budgetary provisions to accelerate renewable energy deployment in the country. We request the government to consider it positively.

1. Clarity on delays in signing of PPAs and PSAs, particularly for centrally bid and state-level projects. The uncertainty is affecting investors and lender’s sentiments. We request the government to specifically address this.
2. Introduction of a dedicated PLI scheme for BESS component manufacturing to strengthen domestic supply chains.
3. Extension of ALMM applicability to solar cells, we request this to be extended for a further period of 2 years till March 2028, considering the current mismatch between the cell demand and its domestic availability.
4. Extension of the concessional 15 per cent corporate tax rate for new renewable energy manufacturing entities for a minimum of five years.

5. Reduction in GST rates on BESS and on corporate guarantees from 18 per cent to NIL, to help improve project viability.

Girish Tanti, Co-founder and Vice Chairman, Suzlon Group and Chairman, Indian Wind Turbine Manufacturers Association (IWTMA) 

Budget 2026 is a testament to our nation’s resilience and commitment to growth, even amidst global uncertainty. With a significant increase in capital expenditure to Rs 12 trillion and energy spending to Rs 1 trillion, we’re laying the foundation for a sustainable future. Focus on renewable energy growth, grid modernisation, and energy security will accelerate India’s energy transition. Atmanirbhar Bharat push with rationalising policies, and incentivising innovation through PLI and tax benefits for domestic R&D and manufacturing. Bond market reforms will further boost our economic momentum. This inclusive and comprehensive budget ensures we’re on course for continued growth and prosperity.

Shyam Sunder Jindal, Promoter, BC Jindal Group

In the Budget 2026, it is encouraging to note the Government’s focus on domestic manufacturing of lithium-ion batteries and solar glass to augment India’s goal of installing 500 GW of non-fossil energy capacity by 2030. Extending the exemption of the basic customs duty on capital goods used for manufacturing lithium-ion cells for battery energy storage systems and on sodium antimonate used in solar glass are welcome steps. This move is poised to play a constructive role in building a power sector that is capable of seamlessly catering to India’s growing energy needs while supporting the country’s clean energy transition.

Laxit Awla, CEO and Executive Director, SAEL Industries Limited 

We commend Budget 2026’s strong push to scale manufacturing and strengthen energy security which is key to a competitive, future-ready India. Measures such as customs duty exemptions for lithium-ion battery energy storage system capital goods, relief on sodium antimonate for solar glass, and targeted support for carbon capture reflect a holistic approach to the energy value chain and industrial decarbonisation.

The tax holiday for foreign cloud service providers using Indian data centres is equally significant, catalysing investment and growth while driving demand for reliable, affordable, and clean power. SAEL has consistently advocated a vertically integrated solar and energy storage ecosystem to build domestic capability and self-reliance in clean energy.

Simarpreet Singh, Executive Director and CEO, Hartek Group

The Union Budget 2026-27 signals that India’s energy transition will be driven by stronger capabilities, not just added capacity. The focus on industry-linked skilling will help build a workforce ready for the expanding renewable and power infrastructure ecosystem. Measures to strengthen domestic solar manufacturing, including duty exemptions on critical inputs like solar glass and sodium antimonate, will reduce import dependence and improve supply chain resilience. Bringing customs duty to NIL on capital goods for lithium-ion cell manufacturing will further accelerate energy storage adoption, which is crucial for grid stability and renewable integration. Together, these steps provide long-term clarity and confidence for investments across power transmission, renewables and energy storage.

Devansh Jain, Executive Director, INOXGFL Group  

The continued policy support for battery energy storage systems, including customs duty exemptions for lithium-ion cell manufacturing, along with duty relief for key solar manufacturing inputs, will play a critical role in strengthening grid stability and accelerating large-scale renewable integration. These measures are particularly relevant for developers and manufacturers working to build end-to-end domestic clean-energy value chains. 

The Budget’s Rs 200 billion allocation for CCUS further complements India’s transition by offering a pragmatic decarbonisation pathway for energy-intensive industries, while preserving industrial competitiveness and energy security. Overall, the Budget reflects a balanced and forward-looking energy vision—one that combines clean energy deployment with infrastructure expansion, manufacturing depth and self-reliance. We commend the government for laying a strong and credible foundation to support India’s long-term clean energy growth and industrial transformation.

 Deepak Acharya, CEO, INOX India Limited

The Union Budget 2026-27 sets an ambitious stage for India’s emergence as a powerhouse of advanced manufacturing and next-generation energy systems. By prioritising long-term capital investment and accelerating the build-out of national infrastructure, the Budget lays the foundation for India to lead in technologies that will define global industry for decades. The Budget’s sustained focus on energy through increased support for infrastructure, technology, and critical industrial sectors reinforces India’s commitment to expanding reliable, low-carbon capacity while accelerating the shift toward cleaner fuels and future-ready technologies. These measures create a stable policy environment for investments in areas such as cryogenics, clean fuels, renewable energy components and high-value industrial equipment.

The enhanced fiscal space created through substantial resource transfers to states Rs 25.43 trillion in FY27 will further enable state governments to advance clean-energy projects, industrial corridors, and large-scale infrastructure that support India’s growing energy and manufacturing needs. Overall, the Budget strikes a prudent balance between fiscal responsibility, structural reforms and targeted public investment. It lays a strong foundation for accelerating India’s energy transition, scaling advanced manufacturing, and building resilient infrastructure areas.

Kushagra Nandan, Co-Founder, LNK Energy

The Union Budget 2026 takes another step to further India’s renewable energy ambitions by backing policy intent with clearly defined schemes, targets, and outlays. On the manufacturing side, the Budget sharpens its strategic focus and will provide a good boost to Renewables manufacturing.

The exemption of Basic Customs Duty on sodium antimonate used in solar glass manufacturing addresses a critical input constraint, while the extension of BCD exemption on capital goods used for manufacturing Lithium-Ion cells to Battery Energy Storage Systems supports domestic capability creation in energy storage manufacturing.

While exemptions continue for critical components such as EVA/PoE encapsulants, backsheets, and copper used in photovoltaic ribbons, the scheduled lapse of certain silicon-related exemptions from April 1, 2026, sends an important signal for manufacturers to accelerate domestic capacity creation and supply-chain readiness. These measures provide long-term direction for investors looking to build scale and depth in India’s solar manufacturing value chain.

In parallel, the decision to exclude the full value of biogas when calculating excise duty on biogas-blended CNG is a practical step to improve affordability and accelerate adoption of sustainable fuels.

The Solar Power (Grid) scheme, with an allocation of Rs 17.75 billion, targets the commissioning of 7,000 MW through Solar Parks and 1,100 MW through CPSU-led projects, providing visibility on utility-scale capacity addition. Similarly, strengthening the PM-KUSUM scheme with an outlay of Rs 50 billion will energise decentralised and agricultural solar adoption.

From a financing perspective, the proposed restructuring of Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to improve credit disbursement and efficiency is a positive development. Faster and more predictable flow of capital from these institutions can materially support renewable energy developers and manufacturers alike.

The Budget also makes provision for enabling infrastructure. The Green Energy Corridor allocation of Rs 5.99 billion, aimed at constructing additional intra-state transmission lines, is designed to facilitate the integration of more renewable energy capacity.

Taken together, these measures reflect a more execution-oriented approach by linking capacity targets, manufacturing scale, and enabling infrastructure. The focus now must be on timely implementation, so that these clearly articulated outlays and outcomes translate into competitive domestic manufacturing, reliable capacity addition, and sustained growth across the renewable energy ecosystem. 

Rupal Gupta, Founder, Managing Director and Chief Executive Officer, TrueRE Oriana Power

Budget 2026-27 marks an important inflection point in India’s energy transition by formally recognising that decarbonisation cannot rely on renewable power alone but must also address emissions from hard-to-abate sectors through credible carbon management solutions.

The proposed Rs 200 billion multi-year outlay for CCUS is a significant and timely intervention. It signals a shift from viewing carbon purely as a liability to treating it as a managed resource, particularly for sectors such as power, cement, steel and refining. If implemented through cluster-based deployment and clear utilisation pathways, CCUS can become a foundational pillar of India’s industrial decarbonisation strategy rather than a niche technology experiment.

Equally important are the Budget’s enabling measures that strengthen the surrounding ecosystem. Customs duty rationalisation for lithium-ion cells used in battery energy storage systems, along with support for critical solar and wind manufacturing inputs, will help improve grid stability and cost competitiveness as renewable penetration deepens. The proposed restructuring of PFC and REC to improve credit velocity can further ease financing constraints for large, long-gestation clean energy projects.

However, to fully unlock private capital at scale, sharper execution frameworks are still needed, particularly around payment security for renewable PPAs and clarity on how CCUS projects will be contracted, certified and monetised. Clear standards for measurement, reporting and long-term offtake will be critical to making CCUS bankable. Also, a clearer demand-side support for green hydrogen will be critical to accelerate large-scale deployment of green hydrogen and clean fuels.

Overall, this Budget reflects a maturing energy policy lens, one that balances renewables, storage and manufacturing with carbon management.

Sanjeev Aggarwal, Founder and Executive Chairman, Hexa Climate

Budget 2026 is a decisive ‘Execution Budget’ that correctly identifies storage and finance as the twin pillars of our energy transition. The extension of customs duty exemption for BESS manufacturing is a game-changer; it signals that the government views storage not as a luxury but as essential grid infrastructure.

Furthermore, the historic capital expenditure target of Rs 12.2 trillion, combined with the restructuring of PFC and REC to improve efficiency, provides the financial backbone we need to scale. By lowering input costs for solar glass and securing the supply chain for critical minerals, this budget gives the private sector the confidence to move from planning to aggressive deployment.

Arif Aga, Director, SgurrEnergy 

The strong emphasis on capacity building through the National Centres of Excellence for Skilling—including collaborations in sectors like renewable energy—is vital for equipping the nation with the specialised workforce needed to deploy large-scale solar, wind, green hydrogen, and other clean energy projects, while optimising renewable energy generation and integration. This commitment will play a key role in achieving India’s target of 500 GW  capacity by 2030, all while ensuring cost efficiency and supporting the broader transition to a sustainable, low-carbon energy future.

Dr. Chetan Shah, Chairman and Managing Director, Solex Energy Limited

The Union Budget 2026–27 clearly positions manufacturing at the heart of India’s energy transition. By extending customs duty exemptions for batteries, energy storage systems, critical mineral processing, and nuclear infrastructure, the government has provided long-term policy certainty that will accelerate domestic value addition and global-scale manufacturing in India. This budget recognises that energy security, clean energy deployment, and industrial competitiveness are deeply interconnected. The strong push for solar integrated with storage, coupled with support for advanced manufacturing and R&D, reinforces India’s ambition to ‘Make in India for the World’—not just as a market for clean technologies, but as a trusted global manufacturing hub driving the energy transition.

Manish Gupta, Chairman, INA Solar

The priority accorded to renewable energy in the Union Budget 2026-27 is a strong and forward-looking step towards India’s sustainable development. By placing solar power, domestic manufacturing, energy storage and grid integration at the centre of the clean-energy transition, the Budget provides long-term policy clarity for the sector. BCD exemptions on critical inputs for solar panels, battery storage, biogas and other clean-energy inputs will make green energy more affordable while giving fresh momentum to domestic manufacturing and local value addition.

The expansion of the PM Surya Ghar Muft Bijli Yojana will accelerate rooftop solar adoption and ensure access to clean, affordable power for millions of households, while initiatives like PM-KUSUM will enhance farmers’ energy self-reliance and income. The focus on storage, grid infrastructure and manufacturing reflects the government’s vision to position India as a global renewable energy leader. This Budget strongly reinforces India’s 500 GW non-fossil capacity target by 2030 and its Net-Zero goal for 2070. Together, these reforms propel India closer to the goal of Viksit Bharat, supported by a resilient and energy- secure economy. As a responsible solar manufacturer, we remain committed to contributing actively to this national mission.

Anvesha Thakker, Partner and National Lead, Clean Energy, KPMG India

Much of the immediate discussion around Budget 2026 has focused on allocations and sector-specific announcements. An equally important dimension, however, lies in how the Budget is beginning to shape new sources of long term demand for clean energy and fuels.

The proposals on cloud services and data centres are a good example. By offering long-term tax certainty and safe-harbour frameworks, the Budget is clearly signalling intent to position India as a global hub for digital infrastructure. Data centres are large, predictable consumers of power with long investment horizons and rising decarbonisation pressures. If enabled with access to green power and storage, they can become anchor buyers of renewables and firm clean energy, creating strong new demand centers.

The proposal to establish dedicated chemical parks reinforces this demand-side opportunity. While the Budget does not explicitly describe these as green, there is scope—if they are planned thoughtfully-to design them as integrated, low-emission industrial clusters. Such parks could anchor sustained demand not only for renewable power, but also for clean intermediates such as green ammonia and green methanol across multiple downstream value chains. Embedding clean energy procurement and CCU into park design would allow decarbonisation to be built into industrial infrastructure, rather than retrofitted later at higher cost.

Taken together, data centres and chemical parks point to a quieter but important shift in how demand for clean energy can be created-one that complements supply-side policy and deserves closer attention.

Manan Thakkar, Co-Founder and Managing Director, Prozeal Green Energy Limited

The Union Budget for FY 2026-2027 presents a forward-looking roadmap aligned with India’s vision of Viksit Bharat and to target above 7 per cent growth rate. The budget introduces transformative reforms across six strategic domains that will enhance the nation’s growth potential and global competitiveness over the next five years. The Finance Minister has taken a balanced approach to growth amid a challenging global environment through comprehensive reforms in taxation, the power sector, urban development, mining, the financial sector, and regulatory frameworks. A particularly impactful measure is the extension of BCD exemption to capital goods used in manufacturing Lithium-Ion Cells for battery energy storage systems. This policy will create a multiplier effect, accelerating the adoption of clean energy solutions across India’s manufacturing sector.

Prashant Mathur, CEO, Saatvik Green Energy Limited

This Budget 2026 sends a strong and well-balanced signal for India’s clean-energy manufacturing ecosystem and marks a major step forward for India’s solar manufacturing story. By locking in long-term domestic demand through a record Rs 12.21 trillion capital expenditure outlay and a nearly 29 per cent increase for the PM Surya Ghar Muft Bijli Yojana, the government has created much-needed visibility for large-scale investments across the solar value chain. The extension of customs duty exemptions for lithium-ion cell manufacturing to battery energy storage systems directly strengthens both energy transition and energy security, while the exemption on critical inputs such as sodium antimonate for solar glass will improve cost competitiveness and accelerate domestic capacity creation in a strategically vital segment.

At the same time, rationalisation of customs exemptions and correction of duty inversions signal a shift from protection to performance supporting domestic manufacturing while enhancing export competitiveness. The continued focus on carbon capture technologies and long-term support for nuclear power underline a technology-agnostic approach to decarbonisation. For manufacturers like us, this clarity is a green light to scale to multi-GW capacities, invest in deep backward integration, and position India as a credible China+1 alternative and a globally competitive, export-ready clean-energy manufacturing hub.

Saurabh Marda, Co-Founder and Managing Director, Freyr Energy

The restructuring of REC and PFC is a welcome step that could strengthen financing for solar projects. These institutions play a critical role in enabling consumer solar adoption—many of our residential customers access loans through NBFCs and banks that ultimately source capital from REC and PFC. Improved operational efficiency and lending capacity at these institutions should translate to better access and terms for consumer solar financing.

The customs duty exemption on solar glass manufacturing inputs, along with the continued support for Battery Energy Storage Systems, reinforces the government’s commitment to building a robust domestic clean energy ecosystem. Combined with the PM Surya Ghar program’s momentum now serving 250,000 households—we are seeing strong tailwinds for distributed solar adoption in India.

At Freyr Energy, we’re focused on leveraging these policy supports to make solar more accessible and affordable for the millions of Indian households ready to make the switch to clean energy.

Gaurav Aggarwal, Co-Founder, GoodEnough Energy

Union Budget 2026 delivers a strong policy push for India’s battery energy storage and domestic manufacturing ambitions. The extension of Basic Customs Duty exemption on capital goods for lithium-ion cell manufacturing to include BESS projects, coupled with full exemption on lithium-ion battery waste and scrap, will significantly reduce capital expenditure and accelerate local manufacturing. The newly introduced Infrastructure Risk Guarantee Fund is particularly encouraging; it will enhance project viability and unlock crucial debt financing for grid-scale BESS deployments nationwide. This Budget positions manufacturing at the heart of India’s energy transition. This aligns directly with our strategic roadmap to accelerate affordable, reliable, and sustainable energy solutions across India as we remain optimistic about the country’s trajectory toward a resilient, decarbonised energy future.

Benjamin Lin, President, Delta Electronics India

This Budget brings together multiple strands of India’s manufacturing and technology growth story in a balanced and forward-looking manner. The Rs 400 billion allocation for India Semiconductor Mission 2.0 and the enhanced outlay for electronics components manufacturing point to a clear focus on scale, depth, and ecosystem development. When seen alongside targeted support for MSMEs through a Rs 100 billion growth fund, the policy framework addresses both large-scale manufacturing and the strength of the supplier base. By aligning capital support with capability building and innovation, the Budget creates a solid foundation for sustainable, technology-led growth and reinforces India’s ambition to emerge as a globally competitive electronics manufacturing hub.

Siddharth Bhatia, Managing Director, Oyster Renewables & AB Energia

Union Budget 2026 lays out a clear growth roadmap anchored in the three Kartavyas of infrastructure expansion, domestic capability building and long-term security. The strong push on infrastructure and record capital expenditure will significantly improve ease of doing business, strengthening grid readiness and accelerating renewable energy deployment. Targeted support for MSMEs through a dedicated growth fund will deepen participation across the clean energy value chain, from manufacturing to services. The focus on rare earth corridors and advanced manufacturing is particularly critical, as it secures essential minerals for battery storage and power electronics. As data centres emerge as a key driver of India’s digital and manufacturing economy, the need for reliable, round-the-clock clean power will only intensify. In this context, customs duty exemptions for battery storage and solar manufacturing inputs will play a vital role in scaling firm renewable energy solutions that support both energy security and sustained economic growth.

Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructures Limited

Union Budget 2026-27 reinforces India’s medium-term growth trajectory by combining fiscal consolidation with a sustained public capex outlay of Rs 12.2 trillion, providing long-term visibility for infrastructure and energy investments. From an energy perspective, the Budget’s focus on system resilience is particularly relevant. As renewable capacity scales rapidly, grid-scale BESS will be essential to manage variability and ensure dependable power delivery. Extending basic customs duty exemption to capital goods used for manufacturing battery energy storage systems is a material step toward accelerating deployment and lowering system costs. Energy diversification is further strengthened through customs relief for solar manufacturing inputs and a Rs 200 billion, five-year commitment for CCUS. At scale, this reinforces the need for reliable, technology-enabled power systems to anchor India’s evolving industrial base and energy ambitions.

Suhas Baxi, Co-founder and CEO, BiofuelCircle

I see the Union Budget 2026 as a strong step forward for climate and clean energy growth in India. The focus on rural ecosystems and technology driven agriculture, particularly initiatives like Bharat Vistar, will help farmers make better decisions, reduce risks, and strengthen value chains. Support for MSMEs and rural networks will further strengthen the resilience of agri supply systems. Importantly, the excise duty relief on CBG blended natural gas, along with the policy push for CBG adoption, improves project viability and sends a strong investment signal for the bioenergy sector. 

Gahan Singh, Partner, Khaitan & Co

Public capital expenditure has been increased to Rs 12.2 trillion from Rs 11.2 trillion, reinforcing the Government’s focus on infrastructure-led growth. The grant of partial credit guarantees to financiers, mitigating risks associated with large-scale projects, has the potential to unlock significant private investment and accelerate the development of critical infrastructure.

Clean and secure energy remains a key priority. The extension of basic customs duty exemptions for goods used in nuclear power projects till 2035 aligns well with the SHANTI Act, 2025. Duty exemptions for capital goods used in lithium-ion battery manufacturing, including battery energy storage systems, and inputs such as sodium antimonate for solar glass will further strengthen domestic clean energy manufacturing. In addition, excluding the entire value of biogas from excise duty on biogas-blended CNG provides a meaningful boost to alternative fuels.

The Budget also advances India’s decarbonisation agenda, with an outlay of Rs 200 billion over five years for CCUS technologies. The total energy sector allocation of approximately Rs 1.09 trillion will support renewables, alternative fuels and clean energy initiatives.

Further, proposals such as rare earth corridors to secure critical mineral supply chains and investments in sustainable transport, including seven high-speed rail corridors, underline the Government’s commitment to a low-carbon, future-ready economy.

Teymur Abasguliyev, CEO, Nayara Energy

The Union Budget 2026 sends a strong signal of continuity and confidence for India’s industrial and energy future. The emphasis on logistics efficiency, policy stability, and technology-led reforms will materially improve project execution across the energy value chain and provide greater certainty for long-term investments. 

Clarity on energy transition pathways, support for refining–petrochemical integration, and incentives for export-oriented downstream manufacturing are particularly encouraging and will help accelerate private sector participation. Combined with sustained capital expenditure, long-term infrastructure financing, and focused skilling initiatives, these measures will enhance global competitiveness, deepen industrial ecosystems, and enable sustainable job creation.

We also welcome the continued focus on MSMEs and emerging energy transition areas such as CCUS and critical mineral corridors, which are essential for strengthening energy security and building resilient supply chains in an increasingly volatile global environment. 

Amod Anand, Co-Founder and Director, Loom Solar 

The announcements around ISM 2.0, electronics manufacturing, critical minerals, and rare earth corridors signal a fundamental shift in India’s clean energy trajectory. For the solar sector, this goes far beyond capacity expansion toward building deep technological sovereignty. India is moving from being a hardware assembler to owning critical layers of the energy-tech IP stack—control systems, forecasting platforms, and grid software that power modern solar and storage ecosystems.

The rare earth corridors address a hidden but critical solar bottleneck by securing access to materials essential for high-efficiency motors, power electronics, and advanced energy systems, significantly reducing strategic dependence on China. Complementing this, customs duty exemptions for critical mineral processing, lithium-ion cell manufacturing for storage, and inputs like sodium antimonate for solar glass strengthen domestic value chains across materials, components, and technology—forming the backbone of India’s long-term energy transition and energy security infrastructure.

Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd

 We welcome the Union Budget 2026 as a pragmatic and forward-looking fiscal blueprint for India’s energy transition. The allocation of Rs 17.75 billion to the solar power (grid) segment underscores the government’s continued commitment to expanding clean energy capacity, while full exemption from Basic Customs Duty on energy transition equipment and solar glass inputs will significantly reduce costs and strengthen the competitiveness of solar manufacturing and deployment.

Equally significant is the strategic restructuring of REC and PFC, which will enhance financing capacity for renewable projects and unlock greater investment flows across the sector. These measures align with India’s ambitious renewable targets and provide confidence to investors, developers and manufacturing ecosystems.

As solar and renewable energy increasingly power India’s growth story, we urge policymakers to complement these budgetary initiatives with deeper incentives for energy storage, grid integration and distributed generation, which together will accelerate the transition to a resilient, affordable and sustainable energy future.

Nishant Sood, Managing Director, India, Candi Solar

The 2026 Union Budget is a meaningful step forward for India’s clean energy transition, particularly for solar and distributed generation. By significantly increasing the renewable energy alocation – including a ~30% rise in funding to nearly Rs 330 billion and expanded support for rooftop solar under the PM Surya Ghar programme – the government has reinforced its commitment to scaling solar deployment across India. Equaly important are the targeted policy measures to accelerate energy storage and strengthen the domestic solar manufacturing ecosystem, such as the extension of basic customs duty exemptions on lithium-ion cell and solar glass inputs. These moves will reduce costs, enhance competitiveness, and enable smoother integration of renewable capacity with grid needs. For the distributed solar sector and energy users, this budget delivers both clarity and opportunity – reaffirming India’s strategy of driving clean energy growth that is economicaly robust, investment-friendly, and aligned with long-term energy security and climate goals.

Pawan Kumar Garg, Chairman and Joint Managing Director, Fujiyama Power Systems Ltd

Union Budget 2026 signals a strong strategic thrust towards technology-led growth and sustainable energy transformation. The launch of India Semiconductor Mission 2.0 with significant support for industry-led R&D and manufacturing is a landmark step in advancing India’s semiconductor ecosystem and strengthening our global competitiveness. At the same time, the renewed focus on solar and renewable energy value chains in the broader budget framework underscores the government’s commitment to achieving clean energy goals and enhancing energy security while reflecting the industry’s call for deeper support across solar infrastructure, grid readiness, storage, and domestic manufacturing. These combined priorities will not only accelerate India’s technology and sustainability ambitions but also unlock meaningful opportunities for innovation and industrial growth. We are optimistic about contributing to this dual momentum in semiconductors and the clean energy transition.

Dr. Faruk G. Patel, Founder, Chairman and Managing Director, KP Group

Ahead of the Union Budget 2026, KP Group strongly advocated for enhanced policy support and incentives for renewables, energy storage, grid infrastructure and critical minerals a backbone of India’s clean energy value chain. We emphasised the need for continued tax rationalisation, targeted duty incentives on key inputs, and strengthened supply-chain support to reduce import reliance and boost domestic manufacturing. These pre-Budget expectations reflected broader industry calls for clarity and competitiveness in global clean-tech markets.

The Budget has taken significant steps in that direction. Among key announcements, dedicated rare earth corridors were proposed across Odisha, Andhra Pradesh, Tamil Nadu and Kerala to secure critical minerals essential for renewables, EVs and high-tech manufacturing. There are planned incentives for lithium and nickel processing  including ~15 per cent capital subsidy for new processing plants aimed at strengthening supply chains for battery and storage technologies. The government has also continued the approach of customs duty reductions on critical minerals and related materials, helping lower input costs for green technologies. Additionally, a Rs 200 billion incentive scheme for carbon capture and storage technologies was unveiled, underscoring the focus on broad decarbonisation pathways.

Baroruchi Mishra, Group CEO, Nauvata Energy Transition

The Rs 200 billion allocation for CCUS, underscores carbon management as an unavoidable pathway for achieving net zero, especially in the hard-to-abate sectors such as steel, cement, refining and coal-based power. A push towards a hub-based CCUS strategy which can lower unit abatement costs and accelerate early deployment is encouraging.

Enabling for CBG–CNG blending strengthens the SATAT ecosystem and directly links waste management, rural income and gas import substitution. Excise duty exemptions will make the blended fuel more cost competitive and push demand for CBG. If backed by guaranteed offtake, CBG can become India’s fastest-scaling decarbonisation lever in transport and city gas distribution.

What is still missing though is the completion of the biofuels value chain that is providing impetus to convert biomethane to bio-LNG which can be a direct substitute for imported LNG and can provide a fillip to the mushrooming of CBG plants in high feedstock areas with potential for CBG plants but not served by pipelines for transportation of CBG. Bio-LNG can be transported to demand locations in iso-containers.

On solar, wind and green hydrogen, the Budget reinforces scale and domestic value addition, but the real test will be grid integration, storage and round-the-clock power frameworks. Integrating hydrogen production with the overall industrial policy rather than confining to a “green hydrogen mission” will be key to growth of hydrogen infrastructure.

A 600 per cent increase in allocation for the Ministry of Coal to push Coal Gasification to convert significant portions of India’s abundant resources of coal to syngas (and then to hydrogen) is good news. It is a clear acknowledgement of India’s resource reality. Since this process emits high volumes of relatively pure CO2, the cost of capture is low and hence, this could also become an anchor for CCUS projects.

Increased allocation for renewable energy by about 30 per cent (including solar and wind) underscores a stronger fiscal support to energy transition through capacity addition and integration. Customs duty exemptions on key inputs like solar glass, sodium antimonate, lithium-ion cell capital goods, and battery storage components, would help reduce module and storage costs. The challenge though is the need to increase in-country value addition on the various components of solar modules which could be less than 30 per cent now. The impetus to rooftop solar is in the right direction – grid integration will be key now.

Overall, this is a budget that tries to solve the trilemma of energy security, equity and sustainability for India in ways that could have speed up its ability to get to net zero by 2070 or earlier.

Manish Dabkara, Chairman and Managing Director, EKI Energy Services and President, Carbon Markets Association of India

The Budget’s Rs 200 billion outlay for CCUS represents a significant transition from climate intent to execution. By prioritising CCUS deployment across hard-to-abate sectors such as power, steel, cement, refineries and chemicals, the government has laid the groundwork for industrial decarbonisation at scale. This is further reinforced by complementary measures supporting critical minerals, domestic manufacturing, and energy security.

 Together, these initiatives strengthen the foundations of India’s emerging carbon markets by improving project viability, enabling credible emissions reduction pathways, and attracting private capital into climate solutions. The Budget positions sustainability not as a constraint on growth, but as an enabler of competitiveness, industrial resilience, and long-term economic stability; an approach that will be vital as India advances toward its net-zero ambitions. 

Manish Aggarwal, Partner, Deloitte India

Budget 2026 builds on the investment momentum built over the last decade by enhanced public investment outlays, while simultaneously focusing on sectors which will drive India’s march into Viksit Bharat. Initiatives taken to promote manufacturing in infrastructure space, E-mobility to promote domestic value capture and maintaining India’s position as one of leading nations on path to Energy Transition. Focus on shipping, containerisation and logistics sector including coastal shipping, which have been hitherto neglected sectors. Liberalisation of the financial sector to increase capital base, streamlining large public sector institutions, unlocking of stuck real assets of CPSEs via monetisation instruments should enhance fiscal space and promote financial inclusion. Setting up of an Infrastructure Risk Guarantee Fund will incentivise more private sector privatisation in the Infrastructure sector.

Raju Kumar, Partner and Energy Tax Leader, EY India

Energy transition as a question of Industrial resilience and system reliability, not just capacity expansion seems to be the key mantra of Budget 2026. The establishment of Rare Earth Corridors in Odisha, Andhra Pradesh, Kerala and Tamil Nadu, alongside customs-duty exemptions for capital goods used in critical-mineral processing, directly addresses input security for renewables, storage and electric mobility. The Rs 200 billion CCUS programme provides a credible pathway to decarbonise power, steel and cement, while extending customs-duty exemptions for nuclear projects till 2035 strengthens long-term baseload stability. On the tax front, exemptions for battery energy storage systems, lithium-ion cells, solar-glass inputs and biogas-blended CNG materially improve project viability. Collectively, these measures are likely to compress project costs, unlock private capital, and accelerate deployment of storage-backed renewables, while the restructuring of PFC and REC could improve credit flow and execution discipline across the power sector.

Dr. Uday Narang, Founder and Chairman, Omega Seiki Mobility 

The Union Budget 2026–27 marks a decisive shift in making India a global hub for smart and sustainable mobility. The strong push on advanced manufacturing, AI-led technologies, electronics and semiconductor expansion, rare-earth and battery supply chains, the Rs 100 billion SME Growth Fund, and higher public capex will significantly strengthen the EV ecosystem. What stands out is the focus on ease of doing business and MSME financing, which lowers cost barriers and improves supply-chain resilience. For companies like Omega Seiki Mobility, this creates the right environment to scale innovation, deepen localisation, expand charging and logistics infrastructure, and accelerate EV adoption across Tier-2 and Tier-3 markets. Together, these measures position India not just as a large EV market, but as a competitive global export base for clean, tech-driven mobility solutions.

Anujesh Dwivedi, Partner, Deloitte India

Budget 2026’s proposals signal a sharper push to mobilise capital and localise supply chains for the energy transition. The proposed restructuring of PFC and REC is aimed at readying them for the larger electricity-sector investments needed to support GDP growth alongside transition goals. BCD exemptions on imported capital goods for manufacturing lithium-ion cells for batteries and BESS, for critical minerals processing, and on sodium antimonate for solar glass manufacturing reinforce the focus on scaling domestic clean-tech equipment. Extending BCD exemption on goods required for nuclear power plants until 2035 should improve near-to-medium-term project competitiveness. The Rs 200 billion, five-year outlay for CCUS across power, steel, cement, refineries and chemicals will accelerate decarbonisation and help protect export competitiveness amid CBAM. Support for mineral-rich states to build rare-earth corridors will reduce import dependence for solar cells and lithium-ion batteries.

Anu Chaudhary, Partner, Global Head – Sustainability and Climate Consulting, Uniqus

This marks a decisive shift from climate intent to implementation. The scheme aims to scale up CCUS technologies across hard-to-abate sectors including power, steel, cement, refineries, and chemicals — industries that are critical to India’s industrial growth but difficult to decarbonise.

With Rs 5 billion allocated in FY27 as part of the first phase and a PPP-led implementation model, the initiative could anchor India’s broader energy security and decarbonisation strategy across power, fuels, and hydrogen.