“As India accelerates its growth momentum with the tax reforms of CY2025 and the forthcoming Union Budget, the nation is poised for all-around progress in manufacturing, digital adoption, and a leadership role in renewable energy.
India’s renewable journey has been remarkable in terms of capacity addition. Yet the next budget must confront a critical reality: generation alone does not ensure transition. Renewables already account for over 40% of installed power capacity, but grid-scale energy storage remains negligible compared to the requirements of a high-renewables system. Without storage, flexibility, and firm green power, clean energy cannot fully displace fossil fuels. Strategic budgetary support for battery energy storage systems, pumped hydro, and green hydrogen is essential to convert intermittent power into reliable, round-the-clock, industrial-grade energy.
Equally vital is strengthening domestic manufacturing. India continues to import a significant share of electrolysers, battery cells, and power electronics—components that will define the next decade of energy infrastructure. Targeted incentives and long-term policy clarity can accelerate local manufacturing, reduce foreign exchange risks, and generate high-quality employment.
As renewable penetration deepens, the budget must recognise that the energy transition is no longer about generation alone; it is about reliability. A budget that aligns power, industry, and infrastructure will define India’s ability to lead, not just participate, in the global energy transition.”
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