The Indian Wind Turbine Manufacturers Association (IWTMA) has welcomed the Union Budget 2026, describing it as a decisive step towards building a resilient, domestic-first wind manufacturing ecosystem aligned with the upcoming Approved List of Models and Manufacturers (ALMM) framework.
The Association noted that the combined impact of customs rationalisation, SEZ facilitation, manufacturing-focused policy signals and legacy support measures provides much-needed visibility and confidence to OEMs, component suppliers and project developers planning investments through 2030.
IWTMA highlighted the extension of concessional customs support for critical wind turbine components as a significant positive. The Budget has extended the 5 per cent Basic Customs Duty (BCD) on key components such as special bearings, gearboxes, yaw components, controllers and blade inputs including balsa wood and carbon fibre up to 31 March 2028. Importantly, the inclusion of forged steel rings used in the manufacture of special bearings under the same concessional duty schedule directly addresses a long-standing bottleneck in the localisation of main-shaft bearings, which are critical for ALMM-compliant wind turbine platforms.
The Association also welcomed the explicit inclusion of the wind turbine ecosystem under the National Manufacturing Mandate (NMM), calling it a strong signal that wind energy is being treated as a strategic manufacturing priority rather than only a capacity addition target. Complementing this, Budget 2026 has introduced a one-time window allowing eligible SEZ manufacturing units to sell into the Domestic Tariff Area (DTA) at concessional duty rates, subject to export-linked caps. IWTMA views these measures as mutually reinforcing, noting that SEZ-to-DTA concessional access avoids taxation on value added within SEZs and enables wind component manufacturers to deploy idle capacity for domestic demand without prohibitive duty costs. Treated as part of the NMM toolkit, this framework can catalyse new investments in high-value components such as bearings, power electronics, advanced blades and towers across both SEZs and the DTA, while maintaining a level playing field with purely domestic manufacturing units.
On the system integration front, IWTMA said the Budget’s strong push on transmission, evacuation infrastructure and energy storage would significantly support higher wind penetration. The total capital expenditure outlay is budgeted to increase to ₹12.22 lakh crore in 2026–27, with energy sector allocations rising sharply from about ₹80,000 crore in 2025–26 to over ₹1.09 lakh crore in 2026–27. These investments are expected to accelerate transmission upgrades, new evacuation corridors and distribution reforms that are essential to absorb higher levels of wind generation. In addition, the extension of customs exemptions for capital goods used in lithium-ion cell and stationary battery energy storage manufacturing is expected to lower costs for wind-solar-storage hybrid and round-the-clock renewable power solutions over time.
IWTMA also welcomed the Budget’s provision of approximately ₹500 crore to clear pending liabilities under the Generation Based Incentive (GBI) scheme for wind power projects. The Association said timely settlement of these long-pending dues would stabilise cash flows for operating assets, improve bankability and asset quality on lender balance sheets, and free up balance-sheet capacity for repowering and the development of new ALMM-compliant wind projects.
Overall, IWTMA stated that Union Budget 2026 provides a coherent and forward-looking policy framework that strengthens domestic manufacturing, supports grid integration and restores investor confidence, positioning the Indian wind sector for sustainable growth in the coming decade.
Girish Tanti, Chairman, IWTMA, said, “Budget 2026 is a testament to our nation’s resilience and commitment to growth… laying the foundation for a sustainable future. With capital expenditure rising to ₹12.2 lakh crore and strong focus on energy, grid modernisation and energy security, this budget clearly accelerates India’s energy transition.”
Aditya Pyasi, CEO, IWTMA, stated, “IWTMA welcomes the Union Budget’s commitment towards doing away with the critical bottlenecks for Wind and RE generation like the enhanced push to grid integration with higher capex provision for green energy corridors and battery integration for Wind-Solar-Hybrid projects and bringing the wind turbine ecosystem under the National Manufacturing Mandate, the government has sent a clear signal that wind is a strategic manufacturing priority, not just a capacity-addition target. The Association will also work with member OEMs and component manufacturers to map localisation pathways for critical parts—especially bearings, blades, generators and power electronics—leveraging the extended 5 per cent BCD window, SEZ manufacturing flexibility and upcoming ALMM timelines.”
