Union Budget 2025: A Strategic Push for Solar and Renewable Energy Growth in India’s Clean Energy Transition

India’s latest Union Budget has set the stage for significant shifts in the electric vehicle (EV) and renewable energy sectors. Industry leaders and experts have weighed in on the announcements, highlighting key policy measures, incentives, and funding allocations that will impact the country’s transition to clean energy.

With a focus on strengthening EV infrastructure, promoting battery manufacturing, and advancing solar and wind energy initiatives, the budget signals the government’s continued commitment to sustainability. The push for domestic production, research and development, and financial support for green technologies has been welcomed by stakeholders, though some concerns remain about implementation and long-term feasibility.

As India moves toward a greener future, the post-budget reactions provide a valuable perspective on what lies ahead for the sector. This analysis captures the expectations, opportunities, and challenges that will shape the country’s energy transition in the coming years.

Mr. SK Gupta, Director and CFO, AMPIN Energy Transition, welcomed the growth-oriented Budget 2025, emphasizing its transformative impact on fiscal and core economic development. He highlighted the “National Manufacturing Mission” with a strong focus on clean technology, which will help diversify manufacturing across states, generate employment, and contribute significantly to GDP growth. He also noted that the relief in personal taxation limits would promote savings and consumption in the economy.

Jaideep N. Malaviya, Managing Director, Malaviya Solar Energy Consultancy, pointed out that the exemption of basic customs duty on lithium-ion battery scrap would boost recycling efforts, support the circular economy, and reduce supply vulnerabilities. However, he suggested that a Production Linked Incentive (PLI) scheme for domestic recycling of renewable energy products could have further strengthened the sector.

Dr. Amit Paithankar, Whole-Time Director & CEO, Waaree Energies Ltd., praised the budget for reinforcing India’s commitment to clean energy self-reliance. He highlighted the National Manufacturing Mission, enhanced PLI schemes, and tariff rationalization for critical minerals as key enablers for the renewable energy ecosystem. The inclusion of incentives for lithium-ion battery manufacturing and exemptions on key raw materials like cobalt and lithium will accelerate India’s position as a global energy storage hub. He also emphasized the importance of skill development initiatives such as the National Centre of Excellence in Skilling and PM Research Fellowship, which will empower the youth and enhance industrial expertise.

Naresh Mansukhani, CEO, Juniper Green Energy, viewed the Budget 2025-26 as a comprehensive roadmap for India’s clean energy transition. He noted the ambitious target of 500 GW of non-fossil fuel energy by 2030 and the government’s focus on incentivizing state-level electricity distribution reforms. He highlighted the budget allocation of ₹1,500 crore to the solar power grid segment, reflecting the government’s long-term vision for clean energy adoption. The extra borrowing allowance for states, contingent on reform implementation, was seen as a crucial step in strengthening the financial health of power distribution companies.

Anupam Kumar, Co-Founder and CEO, MiniMines Cleantech Solutions, described the budget as a transformative step towards a greener future. The exemption of Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, and other critical minerals will secure the availability of essential materials for domestic manufacturing. Additionally, the reduction of BCD on lithium batteries from 5% to 2.5% is expected to accelerate EV adoption, drive battery recycling, and increase rare metal recovery.

Shalin Sheth, Founder and Managing Director, AETL, expressed optimism about the budget’s focus on power transmission, renewable energy projects, and grid modernization. He highlighted the significance of infrastructure investments and distribution reforms, which will enhance resilience, efficiency, and connectivity in India’s energy sector. He sees great opportunities for Advait Energy Transitions Limited in this evolving energy landscape.

Girish Tanti, Vice Chairman, Suzlon, acknowledged the budget’s strategic approach towards achieving India’s renewable energy goals. He emphasized that strengthening Aatmanirbhar Bharat through clean tech, wind, solar, EV, and battery storage will drive self-reliance in manufacturing. The National Manufacturing Mission’s support for renewable energy sources is expected to surpass the 500 GW target and create nearly three million green jobs. He stressed the importance of an integrated clean energy ecosystem that combines wind, solar, batteries, and distribution reforms to achieve a cost-effective green transition.

Sanchit Sekhwal Goyal, Director, Su-Kam Power Systems Ltd., welcomed the budget’s commitment to sustainable energy and employment generation. He highlighted the policy document on energy transition pathways as a crucial step towards a greener and self-reliant India. The exemption of 35 additional capital goods for EV lithium-ion battery manufacturing from customs duty is expected to boost local production and accelerate clean energy adoption.

Saurabh Kumar, Vice President – India, Global Energy Alliance for People and Planet (GEAPP), noted that the budget builds on India’s goal of becoming a global leader in renewable energy. He highlighted the National Manufacturing Mission’s role in promoting the domestic production of solar PV cells and grid-scale batteries. Additionally, he emphasized that private sector-driven research and development initiatives will be instrumental in fostering innovative solutions for a sustainable energy transition.

Abhishek Malik, Executive Director, Calcom Vision Limited, emphasized that the budget reinforces India’s commitment to domestic manufacturing, sustainability, and global competitiveness. The renewed focus on Make in India, export promotion, and ease of doing business will strengthen the manufacturing ecosystem. Policy support for solar PV cells, electrolyzers, and grid-scale batteries aligns with Calcom Vision’s mission of expanding energy-efficient solutions. The establishment of the National Centres of Excellence for Skilling will further enhance India’s talent pool in clean energy manufacturing.

Rajinder Kaul, Chairman and Managing Director, Sharika Enterprises, praised the budget’s emphasis on renewable energy, solar power, and infrastructure development. He noted that the government’s commitment to expanding clean energy solutions will align with Sharika Enterprises’ vision for a sustainable future. The budget’s focus on MSME support and infrastructure enhancement will drive economic growth and innovation in the renewable energy sector.

The budget reveals a strong commitment to advancing India’s transition to clean energy, with a focus on electric vehicles (EVs), renewable energy, and green technologies. The policy measures outlined reflect a multifaceted approach to achieving energy self-reliance and fostering sustainable growth. Industry experts have largely welcomed the government’s emphasis on boosting domestic manufacturing, especially in critical sectors such as lithium-ion batteries, solar, wind, and electric vehicles. Key provisions like tax exemptions, duty reductions, and increased funding for infrastructure, manufacturing, and research indicate a long-term strategy to promote India as a global leader in clean energy. The Budget has been positively received for addressing the financial health of power distribution companies and providing necessary incentives for the renewable energy industry to scale. However, while the framework looks promising, stakeholders have called for clearer roadmaps, policy stability, and stronger implementation to fully harness these opportunities.

The Union Budget 2025 is a pivotal moment for India’s clean energy transition, with its strategic focus on various elements of the renewable energy sector, from EVs to solar and wind power. The provision of financial support and incentives, such as duty exemptions on critical minerals and batteries, positions India to strengthen its supply chains for green technologies. The Budget’s emphasis on the “National Manufacturing Mission” is particularly significant, as it aims to position India as a global hub for clean energy manufacturing. These moves align with India’s broader goals of achieving 500 GW of non-fossil fuel energy by 2030. Industry leaders have highlighted the importance of skill development initiatives and the establishment of Centres of Excellence, which will provide India with the necessary expertise to support this ambitious transition. However, while the policy measures offer hope, experts have urged the government to maintain consistency in policy formulation and ensure that the measures translate into tangible growth for the sector.

The Union Budget 2025 lays the foundation for a transformative shift in India’s energy landscape, driven by investments in clean energy technologies, manufacturing, and infrastructure. The allocation of resources to boost EV adoption, support renewable energy growth, and promote domestic production of critical raw materials is commendable. Industry leaders have expressed cautious optimism, emphasizing the need for sustained policy stability and clear implementation strategies to ensure long-term success. The focus on enhancing India’s manufacturing capabilities, particularly in solar, EV, and battery sectors, not only aims to fulfill domestic energy needs but also places India on track to become a global leader in the clean energy transition. While challenges related to policy execution and roadmaps remain, the budget has undeniably set the stage for a greener, self-reliant, and sustainable energy future for India. The success of these initiatives will depend on effective coordination between the government, industry, and other stakeholders.