Budget 2025: Experts Expect Spur In India's Renewable Growth

The 2025 Budget brought forward by Union Finance Minister Nirmala Sitharaman raised new hopes for the Indian solar sector. With an increase in the budgetary allocations for the overall solar sector and higher budgets for key schemes like PM Surya Ghar, PM-KUSUM and solar power transmission infrastructure, the industry is looking at a healthy growth of the industry in the new fiscal.

The announcements made in the budget also marked new hand-holding support from the government towards battery technology with exemptions on Lithium-ion battery imports, support to critical minerals among others.

Industry experts ranging from the manufacturing sector, developers and others have spoken out on the likely impact of the budget on the green industry of India ranging from solar, and wind to electric vehicle and other clean energy sectors. Following are some of the key observations made by the industry representatives–

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“The scrapping of basic customs duty on import of lithium-ion battery scrap and capital goods – or the machinery used to manufacture lithium-ion batteries – will strengthen the domestic battery storage ecosystem. The development of battery-backed renewable projects, which are expected to form over 33% of renewable power capacity additions in India over the next 3-5 fiscals, will benefit by having greater control over costs, quality and supply of battery systems.”

Ankit Hakhu, Director, Crisil Ratings Ltd

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“The thrust on infrastructure, manufacturing, healthcare, innovation along with direct tax reforms leaving more disposable income in the hands of the middle class should galvanize the economy. The Budget also prioritizes India’s clean energy ambitions by announcing policy support to boost grid storage infrastructure and production of electrolyzers, wind turbines, solar cells, batteries, and very high voltage transmission equipment. The rationalization of tariff on critical minerals and the incentives for manufacturing of Li-ion batteries are positive steps that will help strengthen the domestic manufacturing ecosystem, paving the way for Atma Nirbhar clean energy and clean tech sector and create more green jobs. This is a Budget that sets the roadmap for a resilient, progressive and Viksit Bharat. “

Rahul Munjal, Chairman and MD, Hero Future Energies

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“The allocation of ₹1,500 crore to the solar power (grid) segment in this budget reinforces India’s commitment to the renewable energy transition. The sector has witnessed consistent and significant budgetary support over the years. In recent years, solar power has been a key priority, with allocations surging from ₹2,369.13 crore in 2021-22 to ₹3,304.03 crore in 2022-23. Even in 2020-21, when the allocation stood at ₹2,449.65 crore, the sector received substantial backing. This continued investment highlights the government’s long-term vision for clean energy adoption.”

Naresh Mansukhani, CEO, Juniper Green Energy

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“Budget ‘2025’ is a welcome growth oriented budget aiming to provide transformative reforms to critical sectors of both fiscal and core development of the economy. ‘National manufacturing mission’ with continued focus on ‘Cleantech’ will further help diversify manufacturing across states, creat jobs and make a larger contribution to national GDP in coming times. Relief in personal taxation limits is again a welcome change and is expected to act as a catalyst- promote both savings and consumption in the economy, in coming times.

SK Gupta, Director and CFO, AMPIN Energy Transition

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“The Union Budget for 2025-26 reaffirms India’s commitment to clean technology manufacturing with particular focus on building India’s own ecosystem for solar PV cells, EV batteries, electrolyzers, grid scale storage, and wind turbines. While we will need to wait for the details of this announcement, it is evident that the government wants to significantly reduce dependence on imports in the coming years and boost manufacturing of clean energy equipment. This measure now needs to be backed by action on ground as the share of renewable energy in our overall energy mix rises steadily. Further, a domestic ecosystem will help India accelerate capacity addition and ensure we first attain 500 GW by 2030 and then 1800 GW by 2047. Beyond these measures to boost renewable energy sector, we also need credible measures to address challenges such as land acquisition. A comprehensive approach that includes land reforms, grid security, and faster execution of power purchase agreements is imperative to accelerate India’s clean energy transition.

Parag Sharma, CEO & Founder of O2 Power & President at WIPPA

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“While there is continued focus on domestic manufacturing of generation and storage equipment, there is new-found mention of high-voltage transmission equipment. Given that there are global deficits in this product category, focusing on this sub-segment is a very sound move. India can strive to displace its neighbours and become a global champion in high-voltage transmission equipment. Last, the focus on distribution reforms and intrastate transmission is extremely welcome. India’s power sector is doing quite well when it comes to generation and inter-state transmission. It’s the last mile Transmission & Distribution (T&D) that needs the most attention.”

Pratik Agarwal, Managing Director, Sterlite Power and Chairman, Serentica Renewables

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“Enhanced focus on renewable energy includes a variety of incentives for green hydrogen and domestic manufacturing of electrolyzers, solar PVs, and energy storage solutions. This will make India atmanirbhar in energy and strengthen our energy security in the long run. The budget’s allocation towards grid modernization and clean energy infrastructure is particularly encouraging, as it will pave the way for a more resilient and efficient energy ecosystem.”

Rupal Gupta, Co-founder, MD, & CEO, Oriana Power

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“The National Manufacturing Mission is a transformative initiative that will create a more agile and competitive ecosystem for businesses. This mission is set to rapidly scale India’s domestic capabilities in solar PV cells, EV batteries, electrolyzers, and grid-scale batteries. We welcome the government’s budget, which prioritizes these critical pillars of India’s long-term sustainability and global leadership in clean energy. Clean tech manufacturing thrives on policy certainty and strategic support, and this Mission provides both, backed by a robust execution and monitoring framework.”

Anmol Singh Jaggi, Chairman and MD, Gensol Engineering Ltd

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“We applaud the government’s commitment to the ‘Make in India’ initiative and the new clean tech manufacturing policy, which will augment development of solar PV cells, batteries, and other sustainable technologies locally in India. reforms to improve electricity distribution and transmission, along with incentives for states to modernize infrastructure, will empower power companies nationwide.”

Dushyant Chachra, CFO, SAEL

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“The government’s commitment to fostering a robust ecosystem for manufacturing EV batteries, solar PV cells, electrolyzers, and grid-scale batteries is a crucial step toward strengthening India’s energy security while supporting sustainable growth. By prioritizing clean tech manufacturing, the budget lays a solid foundation for a greener, more self-reliant future.”

Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd

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“The Union Budget 2025 lays the groundwork for accelerating India’s clean energy transition and building a robust domestic manufacturing ecosystem. The announcement of a National Manufacturing Mission with execution and policy support for clean-tech manufacturing is a much-needed boost that will enhance India’s competitiveness in the global renewable energy supply chain. The government’s continued focus on strengthening domestic manufacturing of solar cells, modules, and grid-scale batteries aligns with Saatvik Green Energy’s vision of making India self-reliant in solar technology and reducing dependency on imports.”

Abani Jha, CFO, Saatvik Green Energy

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“The initiative to promote solar cell manufacturing in the Union Budget 2025 is a strategic step towards creating a robust manufacturing ecosystem in India, supported by the Production-Linked Incentive (PLI) scheme. This initiative will have a two-fold impact. Firstly, it will enhance India’s self-reliance in solar cell production, aligning with the government’s vision of Atmanirbhar Bharat. Secondly, it will significantly accelerate the country’s progress towards achieving its ambitious 500-gigawatt renewable energy target by 2030. By promoting in-house module assembly and cell manufacturing, India can reduce its dependence on imports and develop a sustainable renewable energy ecosystem.”

Varchasvi Gagal, MD & CEO of Datta Power Infra

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“The Union Budget 2025 reinforces India’s Net Zero 2070 commitment with key measures to strengthen the clean-tech manufacturing ecosystem. The exemption of Basic Customs Duty (BCD) on critical EV minerals and duty-free status for 35 battery components will secure the supply chain, lower costs, and accelerate EV adoption. Support for MSMEs through capital access reforms and compliance ease will drive innovation and India’s global manufacturing ambitions. Additionally, tax incentives for green investments and startup-friendly policies will boost clean-tech growth, aligning with the ‘Make in India, Make for the World’ vision.”

Mohal Lalbhai, Co-founder & Group CEO, Matter Motor

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The launch of the National Manufacturing Mission, with robust policy support for clean-tech manufacturing, marks a pivotal step in strengthening India’s role in the global renewable energy supply chain. The government’s continued commitment to expanding domestic manufacturing of solar cells, modules, and grid-scale batteries will reduce import dependency and accelerate progress toward the 500 GW renewable energy target. Additionally, the support for wind turbines and electrolysers is a welcome move that will attract investments, generate millions of green jobs, and further advance India’s clean energy transition.

Vignesh Nandakumar, CEO Asia, Enfinity Global

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“The announcement of a National Manufacturing Mission focused on clean tech manufacturing marks a pivotal moment for India’s sustainable industrial future. As a company deeply invested in green energy solutions and advanced battery technology, GEON welcomes this strategic policy support that will strengthen domestic manufacturing capabilities in EV batteries. The mission aims to improve domestic value addition and build our ecosystem for EV batteries, motors and controllers, electrolysers, wind turbines, very high voltage transmission equipment, and grid-scale batteries.

Anand Kabra, Vice Chairman and MD, GEON

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“Focus on innovation, and strengthening domestic manufacturing in critical areas such as grid-scale batteries, electrolysers, solar cells, wind turbines, and nuclear power will be instrumental in shaping India’s energy future. The establishment of five National Centres for Excellence in skilling, incentives for electricity distribution reforms, and strategic amendments to the Atomic Energy Act will further enable a robust, self-reliant energy ecosystem. By incentivizing states to drive reforms and expanding intrastate transmission capacity, we are moving toward a stronger, more efficient power sector.”

Avantika Gupta, CEO, OPG Power Ventures

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“Building on this commitment, the government has significantly increased budgetary allocations, with PME E-DRIVE receiving INR 4,000 Crores, Auto PLI being bolstered by INR 2,218 Crores, and ACC PLI benefiting from an infusion of INR 155 Crores. Since, there is no significant new funding for the SMEC next year (showcasing muted interest in the scheme by the industry), the government may consider rolling out additional incentives in the form of PLI 2.0 (like other sectors) to maintain growth in domestic EV manufacturing, targeting new entrants and startups.

Saurabh Agarwal, Partner & Automotive Tax Leader, EY India

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India’s dedication to renewable energy and manufacturing is emphasized in the Union Budget 2025-26, which places a high priority on solar, battery storage, and grid-scale electrification. An important step toward achieving energy independence is the emphasis on cleantech production of wind turbines, solar cells, and electrolysers. Further, the budget talks about building an ecosystem for high voltage transmission equipment. While the fine print is awaited, this is a welcome announcement since this may lead to the commencement of manufacturing of HVDC in India.

Simarpreet Singh, Executive Director & CEO, Hartek Group

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“The focus on boosting domestic manufacturing of key components like grid-scale batteries, electrolysers, and solar cells is a critical enabler for the renewable energy sector. This will not only reduce dependence on imports but also drive down costs, making clean energy more accessible. The government’s parallel focus on strengthening the electricity grid, including enhanced intrastate transmission capacity, is equally critical for ensuring the success of these renewable energy goals by driving operational efficiency and financial stability within the power sector.

Rajeev Kashyap, SVP and General Manager, Nextracker India, Middle East and Africa

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“The Finance Minister’s proposal to provide a full exemption of Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, scrap, and 12 other critical minerals is a major boost for the sector. This move will secure the availability of these essential materials for domestic manufacturing. Additionally, the customs duty reduction on lithium batteries will drive increased consumption, further benefiting the battery recycling industry. The reduction of BCD from 5% to 2.5% is expected to accelerate EV adoption, creating a ripple effect that will increase the demand for battery recycling and rare metal recovery. Furthermore, the tax exemption on cobalt powder will boost the sales and adoption of cobalt-based battery chemistries, opening new avenues for growth in energy storage and mobility.”

Anupam Kumar, Co-Founder and CEO, MiniMines Cleantech Solutions