The Union Budget 2025 has received strong industry support for its emphasis on clean energy, domestic manufacturing, and infrastructure development. The budget, presented to Parliament by Finance Minister Nirmala Sitharaman last week, has introduced several initiatives under the National Manufacturing Mission focused on strengthening India’s role in the global renewable energy supply chain.

Industry leaders have welcomed these measures, highlighting their potential to drive investments, job creation, and energy security.

Renewable Energy Expansion

The budget’s focus on expanding India’s clean energy capacity and infrastructure development has been widely appreciated.

Vignesh Nandakumar, CEO Asia, Enfinity Global, commended the government’s commitment to domestic manufacturing of solar cells, modules, wind turbines, and grid-scale batteries, stating that these efforts will accelerate India’s progress toward its 500 GW renewable energy target. He also highlighted the importance of grid strengthening for seamless renewable energy integration.

Rajiv Ranjan Mishra, Managing Director, Apraava, highlighted the boost to intra-state transmission capacity and electricity distribution reforms as crucial steps toward a more sustainable power sector. He emphasized that additional borrowing allowances for states will expedite energy sector modernization.

Naresh Mansukhani, CEO of Juniper Green Energy, emphasized that the allocation of ₹15 billion (~$172.10 million) to solar power projects (grid), combined with state incentives, will strengthen clean energy infrastructure in India. He also noted the increasing solar budget allocations as evidence of India’s long-term vision for renewable energy.

Sameer Gupta, Chairman of Jakson Group, noted that the budget’s ₹10 trillion (~$114.73 billion) commitment to new projects under the Asset Monetization Plan 2025-30 and ₹1.5 trillion (~$17.21 billion) for state capital expenditure would enhance India’s energy and infrastructure capabilities. He further stressed the role of infrastructure development in driving economic growth.

Strengthening Domestic Manufacturing

The National Manufacturing Mission, focused on clean technology manufacturing, has received enthusiastic support from industry leaders.

N.P. Ramesh, COO and Co-Founder, Orb Energy, praised the initiative for accelerating the domestic production of solar cells, EV storage batteries, and other renewable technologies, reinforcing India’s global supply chain position. He also pointed out that Industry 4.0 will create exciting opportunities for youth in cleantech innovation.

Simarpreet Singh, CEO, Hartek Group, underscored the significance of indigenous production of high-voltage transmission equipment and deep-tech funding in positioning India as a leader in clean energy solutions. He stated that investments in deep-tech innovation would drive breakthroughs in solar and energy storage.

Pratik Agarwal, Managing Director, Sterlite Power, highlighted the focus on manufacturing high-voltage transmission equipment as a strategic move to bridge the global deficit and establish India as a leader in this segment. He emphasized that transmission and distribution remain the weakest links in India’s power sector.

Anmol Singh Jaggi, Chief Managing Director, Gensol Engineering, stated that the mission provides the necessary policy certainty and execution framework for India’s long-term sustainability goals. He noted that cleantech manufacturing thrives on strategic government support.

Abani Jha, CFO, Saatvik Green Energy, welcomed the support for domestic manufacturing of solar cells and modules, noting that reducing import dependency aligns with India’s self-reliance vision. He also emphasized that indigenous solar technology will be instrumental in India’s energy transition.

Amit Paithankar, Whole-Time Director and CEO, Waaree Energies hailed the announcement of the National Manufacturing Mission, along with enhanced PLI programs and tariff rationalization for critical minerals, will support the rapid growth of the entire renewable energy ecosystem.

Battery Storage and Grid Integration

Recognizing the pivotal role of energy storage in renewable adoption, the budget includes measures to strengthen battery manufacturing and grid integration.

Nishant Sood, Managing Director, Candi Solar, called for additional duty-based support to further scale battery storage, essential for maximizing solar energy adoption. He stressed that storage solutions must expand alongside solar deployment.

Vignesh lauded the reduction of basic customs duty (BCD) on lithium-ion batteries, stating that it will facilitate the deployment of energy storage solutions alongside renewables. He also noted that storage and renewables must progress together for a seamless energy transition.

Naresh emphasized the necessity of a resilient power infrastructure, particularly for regions like Rajasthan, Gujarat, and Uttar Pradesh, where solar energy adoption is rapidly growing. He pointed out that improved transmission networks will ensure reliability and efficiency.

Paithankar noted that the inclusion of lithium-ion battery manufacturing incentives and duty exemptions on key raw materials like cobalt and lithium will accelerate India’s emergence as a global hub for energy storage solutions, furthering the EV and solar industries.

DISCOM Reforms

The budget prioritizes electricity distribution and financial stability of distribution companies (DISCOMs), ensuring efficient power delivery and grid modernization.

Mishra noted that incentives for States to improve distribution and transmission capacity will enhance the operational efficiency and financial health of power distribution companies. He also highlighted that the regulatory reforms would make the power sector more investment-friendly.

Girish Tanti, Vice Chairman, Suzlon, highlighted the necessity of an integrated energy ecosystem, combining wind, solar, batteries, and distribution reforms for a cost-effective clean energy transition. He stressed that national security depends on building local expertise in these industries.