Last Updated on 28-01-2026 by Author
The Union Budget has outlined the government’s priorities across economic growth, infrastructure development, and sustainability, with renewable energy continuing to remain a key focus area. The measures announced are expected to influence investment decisions, policy direction, and the pace of India’s clean energy transition in the coming years.
Industry stakeholders have shared their views on the Budget’s implications for the renewable energy ecosystem, highlighting opportunities across solar, wind, energy storage, green hydrogen, and domestic manufacturing, while also pointing to areas that will require clarity and effective implementation.
Industry Reactions:
Mr. Shekhar Singal, Managing Director, Eastman Auto & Power Limited, said, “The Union Budget reinforces policy continuity for India’s energy transition by strongly backing domestic manufacturing, clean mobility, and decentralised renewable energy adoption with storage. With India expected to account for nearly 30% of global energy demand growth by 2035, the Budget’s emphasis on renewable capacity expansion, grid integration, and reliable power delivery is both timely and strategically aligned with the country’s long-term clean energy ambitions.
The exemption of basic customs duty on select capital goods, along with the addition of 35 capital goods for EV battery manufacturing, will provide a meaningful boost to domestic battery manufacturing and energy storage capabilities. In parallel, the ₹40,000-crore push for electronics manufacturing across key components such as printed circuit boards, capacitors, resistors and display modules will strengthen India’s electronics and advanced manufacturing ecosystem.
The continued focus on grid-scale renewable energy projects, alongside rooftop solar adoption under initiatives such as PM SURYA GHAR, will accelerate decentralised energy access while enhancing grid resilience. Overall, the Budget provides much-needed clarity and continuity, supporting India’s 500 GW non-fossil fuel target and enabling companies like ours to scale integrated solar-storage solutions, strengthen last-mile e-mobility infrastructure, and drive sustainable energy access across both urban and rural markets.”
Mr. Vinay Thadani, Director & CEO, GREW Solar, said, “The Union Budget 2026 reinforces Viksit Bharat and Aatmanirbharta by prioritising energy security, manufacturing, and global competitiveness. With ₹40,000 crore invested in initiatives like India Semiconductor Mission 2.0 and the development of domestic solar components, including solar glass, the government is strengthening self-reliant, technology-led industrial ecosystems. For the solar sector, this push reduces import dependence, boosts exports, drives employment, and accelerates India’s transition to clean energy. With continued reforms supporting infrastructure and ease of doing business, renewable energy manufacturing is well placed to play a key role in India’s growth story.”
Thanking the Government of India, Mr. Manish Gupta, Chairman, INA SOLAR (Insolation Energy Ltd), said, “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.”
Mr Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions Private Limited, said, “The Union Budget 2026–27 charts a decisive course for India’s evolution into a global technology leader. The enhanced capital outlay of ₹12.2 lakh crore and the launch of the India Semiconductor Mission 2.0 reaffirm the government’s commitment to deep-tech indigenisation. The ₹40,000 crore allocation for electronics component manufacturing is a strategic intervention that propels the ecosystem toward advanced engineering and value creation. The focus on establishing Rare Earth Corridors further strengthens the foundation for a secure and self-reliant supply chain. The budget’s emphasis on providing skilling programmes will encourage the youth in providing quality employment opportunities.
At Socomec, we welcome the government’s thrust on high-tech manufacturing and the ₹10,000 crore MSME Growth Fund, both of which will accelerate innovation and competitiveness across the electrical sector, driving the vision of an ‘Aatmanirbhar’ and ‘Viksit Bharat’ by 2047.”
Mr. Manjunatha D V, Founder and CMD, EMMVEE Photovoltaic Power Limited, said, “Union Budget 2026 reinforces policy stability for renewable energy and manufacturing. The focus is clearly shifting from incentives to execution, scale, and quality. For companies that have invested early in domestic solar manufacturing, this consistency provides long-term confidence and greater visibility for planning and expansion. With the policy direction firmly in place, the emphasis now is on operational excellence, cost competitiveness, and building depth across the value chain. This approach strengthens India’s position as a credible global manufacturing hub for clean energy solutions and supports sustainable, long-term growth.”
Mr. Suhas Donthi, CEO, EMMVEE Photovoltaic Power Limited, said, “Union Budget 2026 sends a clear and confident signal of stability and continuity. By staying the course on fiscal discipline, sustained public capex, and ease of doing business, the government has reinforced the predictability that capital-intensive sectors like renewable energy manufacturing need to plan, invest, and scale with confidence. The consistency in tax policy and clarity in the operating framework provide strong visibility for long-term decision-making.
The continued emphasis on energy transition, demand creation, and infrastructure readiness reflects a firm commitment to India’s clean-energy ambitions. As the focus shifts to execution, access to capital, and building deeper domestic value chains, India is well-positioned to strengthen its manufacturing competitiveness and establish itself as a reliable global hub for energy and industrial solutions.”
Mr. Kalpesh Kalthia, CMD, Kosol Energie, said, “The Union Budget 2026–27 reinforces India’s commitment to a clean energy future. Allocations for the renewable sector have been significantly strengthened, with the Ministry of New & Renewable Energy receiving ₹32,914.7 crore and dedicated support for solar initiatives at ₹30,539 crore, demonstrating more than 30 % growth in targeted fiscal backing for solar deployment, grid integration, and decentralised energy projects.
Equally noteworthy is the long-term tax incentive for data centres — a tax holiday up to 2047 for global cloud and AI players building Indian data infrastructure — which can accelerate demand for low-cost renewable power. Data centres are among the most electricity-intensive users, and with renewables now the most economically competitive source of power, this move creates a structural tailwind for solar adoption across the digital economy. A strategic push reinforcing India’s clean energy ambitions and long-term sustainable growth.”
Mr. Shantanu Sirsath, Managing Director & Co-Founder, Bhasu Energy Systems LLP, said, “Union Budget 2026 reinforces a stable and forward-looking approach for the renewable energy sector. The continued focus on domestic manufacturing, infrastructure development, and ease of doing business will directly benefit EPC players and distributors by improving supply-chain confidence and execution efficiency. These measures are well-aligned with India’s long-term clean energy and energy security objectives.”
Mr. Pawan Kumar Garg, Chairman & Joint Managing Director, Fujiyama Power System Ltd, said, “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.”
Mr Girish Tanti, Indian Wind Turbine Manufacturers Association (IWTMA) Chairman, said, “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 ₹12 lakh crore and energy spending to ₹1 lakh crore, we’re laying the foundation for a sustainable future. Focusing on renewable energy growth, grid modernisation, and energy security will accelerate India’s energy transition. Atmanirbhar Bharat pushes with rationalizing policies and incentivizing 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”.
Mr Manish Garg, CEO, Interarch Building Solutions Limited, said, “Union Budget 2026 lays down a compelling roadmap for India’s growth, with a clear emphasis on strengthening infrastructure and bolstering manufacturing. The sustained capital expenditure on key infrastructure projects and amplified support for domestic manufacturing ecosystems will enhance industrial competitiveness, reinforce supply chains, and unlock new opportunities for job creation. We also welcome the Government’s announcement of India Semiconductor Mission 2.0, which will deepen India’s capabilities in advanced chip and electronics manufacturing and position India as a critical player in the global tech ecosystem. Such forward-looking measures are essential for accelerating India’s journey toward economic resilience and global leadership.”
Mr. Dibakar Roy, CEO, Aster E-Technologies, said, “Union Budget 2026 sends a strong signal of continuity and intent toward strengthening India’s clean energy and manufacturing ecosystem. The sustained focus on domestic manufacturing, technology-led infrastructure, and ease of doing business will accelerate investments across solar PV, energy storage, and advanced testing capabilities. For solution providers like Aster E Technologies, this reinforces confidence in India’s transition toward high-quality, globally competitive renewable manufacturing.”
Mr. Rajiv Ranjan Mishra, Managing Director, Apraava Energy, said, “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 battery energy storage systems (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 ₹20,000 crore outlay over five years for Carbon Capture, Utilisation and Storage (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 ₹40,000 crore, 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.”
Mr. Yashodhan Ramteke, Chief Executive Officer & Director, EcoGuard Global, said, “With the Union Budget announcing a commitment of ₹20,000 crores over five years to Carbon Capture, Utilisation and Storage (CCUS), we see a major shift in the way the country is planning to address the challenge of decarbonisation in sectors such as power, steel, cement, refineries, and chemicals. The scheme has the potential to take CCUS from the pilot stage to a viable industrial solution, which would be beneficial in reducing transition risk in the country’s journey towards the development of its domestic carbon market. Post the renewable energy push that resulted in achieving our NDC targets earlier than anticipated, the next focus area naturally flows into CCUS which will help the country to decarbonize its hard to abate sectors.
This move also provides a strong base to the green economy of the country by allowing the reduction of emissions without impacting the level of industrial output, which is critical to maintaining the country’s global competitiveness. With the country increasingly aligning itself to the European Union’s carbon standards, investments in CCUS, MRV technologies, and outcome-based incentives would make the country’s industry not only ‘decarbonisation-ready’ but also ‘market-aligned,’ which would be critical to the country’s Net Zero ambitions.”
Dr. Faruk G. Patel, Founder, Chairman, and Managing Director, KP Group, said, “We welcome the Union Budget 2026 and the significant steps taken to strengthen India’s clean energy ecosystem. The proposal for dedicated rare earth corridors across Odisha, Andhra Pradesh, Tamil Nadu and Kerala is a positive move towards securing critical minerals essential for renewables, EVs and high-tech manufacturing. Incentives for lithium and nickel processing, including capital subsidies for new processing plants, along with continued customs duty reductions on critical minerals and related materials, will help strengthen domestic supply chains and reduce input costs for green technologies. The ₹20,000 crore incentive scheme for carbon capture and storage further underscores the government’s commitment to advancing broad-based decarbonisation pathways.”
Mr Amod Anand, Co-Founder & Director, LOOM SOLAR PVT. LTD., said, “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.”
Mr. Vineet Agarwal, Managing Director, TCI Group (Transport Corporation of India Limited), said, “The Union Budget 2026–27 sends a strong and reassuring signal on India’s manufacturing-led growth agenda. By maintaining fiscal discipline with a deficit of 4.3% while scaling capital expenditure to ₹12.2 lakh crore, the Government has reinforced confidence in long-term investments, capacity creation, and a stable, predictable policy environment that strengthens ease of doing business. The Budget’s sharp focus on logistics and industrial infrastructure will be a major enabler of manufacturing scale-up.
Dedicated freight corridors, expansion of national waterways, high-speed rail connectivity, investments in ship-repair ecosystems, and a ₹10,000-crore push for container manufacturing will significantly reduce logistics costs and build a robust ecosystem for capital goods and supporting industries.
These measures will strengthen MSMEs, crowd in private investment, and generate large-scale employment across manufacturing, logistics, and tourism-linked services. Equally important is the forward-looking emphasis on advanced manufacturing through ISM 2.0, semiconductors, data centres, and AI-led digital platforms. Together, these initiatives lay the foundation for resilient, technology-driven supply chains and position India as a globally competitive hub for manufacturing, trade, tourism, and job creation—aligned with the broader vision of Viksit Bharat.”
Mr. Tanmoy Duari, CEO, Axitec Energy India Pvt. Ltd., said, “We welcome the Union Budget 2026 as a pragmatic and forward-looking fiscal blueprint for India’s energy transition. The allocation of ₹1,775 crore 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.”
Mr. Shyam Sunder Jindal, Promoter, BC Jindal Group, said, “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.”
Mr. Satyanarayana Baratam, Chief Financial Officer & Director, Bondada Group, said, “The Budget provides a clear operational framework for the next phase of expansion, driven by accelerated infrastructure creation, improved renewable energy economics, and rising demand from sectors such as data centres and advanced manufacturing. The emphasis on rail connectivity and the growth of Tier II and III hubs aligns perfectly with our execution-driven approach in power, solar, and industrial infrastructure. A key benefit is the reduced import duty on solar glass, which will lower project costs and accelerate the deployment of renewable energy projects, thereby improving their overall feasibility. These initiatives, taken together, boost scalability, strengthen domestic supply chains, and facilitate quicker on-ground execution. We view this as a critical juncture, where clear policy converges with opportunity, enabling us to broaden our presence and make a significant contribution to Bharat’s upcoming era of sustainable, infrastructure-driven growth.”
Mr. Mayur Vastarpara, Director, Sunora Solar PV Module, said, “The Union Budget 2026 sends a strong and reassuring signal for India’s renewable energy ecosystem, particularly for decentralised and rooftop solar. The continued focus on solar deployment, domestic manufacturing, and long-term policy stability strengthens the economic case for solar adoption. For households and businesses alike, solar is increasingly becoming a tool for predictable energy costs, improved cash flows, and long-term financial resilience rather than just short-term savings.”
Mr. Ridham Patel, Director, Sunora Solar PV Module, noted that the Budget opens new opportunities for innovation and scale. “Support for energy storage, grid integration, and clean-energy manufacturing reflects the government’s understanding of future power requirements. Advances in solar technology, combined with supportive policy, allow companies like Sunora Solar to deliver reliable, efficient, and future-ready energy solutions. This Budget creates the right environment for technology-led growth across India’s clean-energy value chain.”
Mr Devansh Jain, Executive Director, INOXGFL Group, said, “We thank the Government of India led by Hon’ble Prime Minister Shri Narendra Modi, and Hon’ble Finance Minister Shrimati Nirmala Sitharaman for presenting the Union Budget.
The Union Budget 2026–27 underscores the Government of India’s sustained commitment to building a resilient, low-carbon energy system—an approach that closely aligns with INOXGFL Group’s integrated clean energy strategy across renewables, manufacturing and infrastructure.
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 ₹20,000 crore allocation for carbon capture, utilisation and storage (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.”
Mr. Saurabh Marda, Co-Founder & Managing Director, Freyr Energy Services Pvt Ltd, said, “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 2.5 lakh households—we’re 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.”
Mr. Rahul Munjal, CMD, Hero Future Energies, said, “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.”
Mr. Jalaj Hariiom Gupta, Managing Director, Montra Electric, said, “This year’s Union Budget lays a strong foundation for India’s clean mobility and advanced manufacturing ambitions. From supporting lithium-ion cell manufacturing and rare earth processing to strengthening semiconductor and electronics ecosystems through ISM 2.0 and enhanced component schemes, the government is enabling a truly integrated EV supply chain. These initiatives will help deepen localisation, develop skilled talent, and reinforce India’s position as a global hub for sustainable mobility and high-technology manufacturing.”
Mr. Hiren Pravin Shah, Managing Director, CEO, Replus – A Subsidiary of Bhilwara Energy Ltd, said, “Union Budget 2026 marks a decisive inflection point for India’s battery and BESS ecosystem by shifting the narrative from mere capacity creation to system readiness and grid stability. The formal recognition of BESS as infrastructure assets, combined with faster VGF payouts, GST rationalisation across advanced chemistries, and zero-duty access to critical machinery and minerals, materially improves project bankability and developer liquidity. Equally important is the clear push towards upstream localisation through ACC-PLI 2.0 and circular economy measures like the Battery Aadhaar, which will strengthen domestic supply chains and reduce import dependence. The inclusion of storage under PM Surya Ghar 2.0 further unlocks a large residential market, signalling that energy storage is now central to India’s clean energy transition rather than a peripheral add-on.”
Mr. Suthram Srinivas, Senior Vice President, Kshema Power India, said, “The Union Budget 2026–27 takes a meaningful step toward strengthening India’s clean energy supply chains. By building on the ₹7,280 crore scheme approved in November 2025, the government has clearly signalled its intent to develop a strong domestic ecosystem for rare earth elements and permanent magnet manufacturing, which are essential for wind energy and electric mobility. Encouraging local production of high efficiency permanent magnets will help reduce import dependence and make renewable energy infrastructure more cost competitive.
Alongside this, the continuation of customs duty concessions and exemptions on lithium ion battery materials and cells reinforces the government’s commitment to supporting the clean technology ecosystem. These measures are expected to ease cost pressures, improve supply reliability, and accelerate the transition to cleaner energy solutions.
For us at Kshema, this policy direction brings greater clarity and confidence. It strengthens the ecosystem we operate in, supports scalable execution, and enables us to contribute meaningfully to India’s long term Net Zero 2070 journey.”
Mr. Gaurav Aggarwal, co-founder of GoodEnough Energy, said, “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.”
Dr. Avishek Kumar, Founder, Sunkonnect Pte Ltd and Global Climate Tech Entrepreneur, said, “We welcome the Union Budget 2026 as a positive step for India-based renewable energy companies. The record ₹12.21 lakh crore capital expenditure outlay and 29% increase for PM Surya Ghar create good visibility for solar investments and domestic manufacturing scale-up. The customs duty rationalisation to 20% on solar cells and modules, along with BCD exemption on sodium antimonate for solar glass, will support local production capabilities. However, while the reduction in BCD will help manage local production, it may not significantly reduce costs; further measures will be needed to improve affordability.
The Infrastructure Risk Guarantee Fund will help unlock debt financing for grid-scale BESS projects, while the extension of duty exemptions to lithium-ion cell manufacturing positions India to build a more self-reliant battery ecosystem. Full exemptions on battery waste and critical minerals like cobalt powder further strengthen domestic supply chains.”
Mr. Laxit Awla, CEO and Executive Director, SAEL Limited, said, “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.”
Mr. Shivam Sisodiya, CEO & Co-Founder of Bijliride, said, “Budget 2026 takes a decisive step toward strengthening India’s EV and energy storage ecosystem by addressing both supply-side resilience and demand-led adoption. Continued customs duty exemptions on capital goods and lithium-ion cells, along with support for battery storage systems, will significantly lower cost barriers and accelerate fleet-scale electrification. Investments in electronic components, rare earth processing, and container manufacturing will further stabilise supply chains and support export readiness. The addition of electric buses to public transport underscores the government’s commitment to clean mobility at scale, creating strong momentum for shared, rental, and technology-led EV solutions across urban India.”
Mr Prashant Mathur, CEO, Saatvik Solar, said, “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 ₹12.21 lakh crore capital expenditure outlay and a nearly 29% 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.”
Mr Yogesh Kudale, Co-founder and CEO of Taypro Private Limited, said, “Budget 2026 is an optimistic step in the right direction to create a robust and future-ready energy ecosystem in India. The restructuring of PFC and REC shows a clear focus on enhancing the efficiency of institutions and creating deeper liquidity for private investment in large-scale renewable energy projects. The introduction of the Infrastructure Risk Guarantee Fund is also very encouraging, as it significantly reduces risks associated with long gestation power projects and can attract long-term global funds into the sector.
Equally significant is the emphasis on the transition to dispatchable renewable energy, with a major thrust on storage and grid modernisation. This is the groundwork needed to transition from clean energy aspirations to clean energy delivery. The enhanced capital outlay of ₹12.2 lakh crore, particularly in the area of transmission and green corridors, will be a major catalyst in this regard. Finally, the opening up of opportunities in nuclear energy and green hydrogen is a sign of a very progressive approach to energy security and independence.”
Mr. Subhrakant Panda, Managing Director, Indian Metals & Ferro Alloys Ltd, said, “Finance Minister Nirmala Sitharaman has presented a record ninth consecutive Budget, which is citizen-centric and replete with measures to improve the life of ordinary Indians.
She has sent a clear message about her intent to support growth momentum through a continued thrust on infrastructure development. The government’s move to earmark ₹12.2 lakh crore, nearly 8.8% higher than the previous budget, for the development of roads, bridges, ports and other infrastructure projects is a welcome step and will significantly boost economic activity. Moreover, by meeting the fiscal glide path, the Budget is anchored in credibility.
The FM’s proposal to establish dedicated rare earth corridors across four mineral-rich states, including Odisha, with the aim of reducing import dependence and strengthening domestic capabilities, is a positive development that will support critical sectors such as green energy, electronics, defence, and electric mobility. Moreover, the removal of basic customs duties on capital goods used in critical mineral processing is a timely and pragmatic step.
Overall, the government’s move to accelerate economic growth by focusing on seven strategic sectors, rejuvenating legacy industries, and creating champion MSMEs reflects a forward-looking approach to accelerating economic growth.”
Mr. Riju Jhunjhunwala, Managing Director, LNJ Bhilwara Group, said, “The Union Budget 2026-27 reflects a strong and forward-looking commitment to sustainable growth, anchored in fiscal discipline and strategic investment. The projected fiscal deficit of 4.3 per cent of GDP and ongoing fiscal consolidation provide a stable foundation for long-term investments in the energy sector.
The increase in capital expenditure to ₹12.2 lakh crore demonstrates a clear push toward infrastructure and technology-driven development, creating an enabling environment for clean energy integration and long-term renewable projects. Key measures such as the India Semiconductor Mission 2.0 and customs duty exemptions for battery energy storage systems and solar glass directly support technology adoption and energy security, making renewable energy projects more feasible and cost-effective.
Overall, the Budget reinforces confidence in scaling clean energy solutions, strengthening energy infrastructure, and advancing India’s transition to low-carbon, resilient, and future-ready energy systems.”
Mr. Ankur Khaitan, MD & CEO, TACC Limited, said, “With India’s projected 7.4% GDP growth and resilience in inflation and demand as key enablers. The Union Budget 2026 reinforces the government’s long-term commitment to building a robust domestic manufacturing eco system keeping India on a global growth platform with higher productivity, growth and being a powerhouse of manufacturing.
Specifically for lithium-ion battery manufacturing ecosystem, continued emphasis on manufacturing-led growth, along with the extension of basic customs duty exemptions on critical mineral processing equipment, is a positive step that lowers capital intensity and supports localisation of advanced battery materials.
The Budget’s alignment with the National Critical Mineral Mission, with an outlay of approximately ₹34,500 crore, is particularly significant. This mission builds on the Ministry of Mines’ 2023 notification identifying 30 critical minerals under the MMDR framework, including graphite, acknowledging its strategic importance for energy storage and electric mobility. However, while upstream minerals are rightly prioritised, there is further push expected towards explicit policy incentives or manufacturing support for synthetic graphite-based, battery-grade anode materials. Synthetic graphite is a foundational input for lithium-ion cells, and greater policy clarity or targeted incentives would be critical to deepen domestic value chains and ensure the long-term effectiveness of the ACC PLI scheme.
Budget 2026’s allocation of ₹20,000 crore over five years for Carbon Capture, Utilisation and Storage (CCUS) also marks an important step toward industrial decarbonisation. In this context, TACC’s graphene-enabled solutions for cement and concrete, which reduce cement consumption and embodied carbon, complement CCUS objectives by enabling low-cost, source-level CO₂ avoidance.
Overall, the Budget sets a strong direction, and we remain confident that future policy measures will place a sharper focus on advanced anode materials to fully strengthen India’s battery ecosystem and clean energy ambitions.”
Mr. Manish Dabkara, Chairman and Managing Director, EKI Energy Services Ltd (EnKing International) and President Carbon Markets Association of India – CMAI, said, “The Budget’s ₹20,000 crore outlay for Carbon Capture, Utilisation and Storage 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.
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.”
Mr. Chandra Kishore Thakur, Global CEO, Sterling and Wilson Renewable Energy Group, said, “We feel that this budget has rightly prioritized 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 battery energy storage systems (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.”
Mr. Vinay Rustagi, Chief Business Officer at Premier Energies Limited, said, “This is a forward-looking budget with an eye on improving long-term energy security and domestic manufacturing industry competitiveness across different parts of the energy sector. Specifically for solar, the big increase in funds allocation for PM-Surya Ghar and KUSUM schemes to Rs. 27,000 crores would be a major help for domestic manufacturers. The government has listened to the industry and announced a provision to develop hi-tech tooling capability for precision equipment and capital goods, which will help to reduce reliance on other countries. Import duty waivers on equipment used for battery storage manufacturing and critical mineral processing are expected to reduce cost of domestically manufactured products. Other significant measures include substantial financial support for developing new technologies like carbon capture and nuclear.”
Collectively, industry voices indicate cautious optimism, with an emphasis on policy continuity, ease of financing, and stronger coordination between government and industry. Stakeholders believe that timely execution of the proposed measures will be crucial in translating Budget intent into tangible progress for India’s renewable energy sector.
