Union Budget 2026: Industry Seeks Stronger Fiscal Support on Renewables, Storage and Domestic RE Manufacturing
As India accelerates towards its 500 GW non-fossil fuel capacity target by 2030, expectations are mounting ahead of Union Budget 2026 for stronger fiscal and policy support to scale clean energy sector. Energetica India speaks with leaders from the renewable energy and EV industry on their budget wishlist.
January 21, 2026. By Abha Rustagi
India has set a target of 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070. As of December 31, 2025, India’s total non-fossil installed capacity stands at about 266.79 GW, as per Ministry of New and Renewable Energy (MNRE) data. Solar energy contributes about 135.81 GW, followed by wind (54.51 GW) and large hydro (50.91 GW). In the next 5 years, India must add about 46.8 GW annually to reach its target. Therefore, continued budgetary support will be crucial.
Despite an 80 percent increase in allocation to INR 12,000 crore for PM Surya Ghar Yojana in the last budget, only about 24 percent of its overall target of 1 crore housegold by March 2027 has been achieved, as of December 3, 2025. A substantial increase in allocation is expected once again.
PM KUSUM 2.0 is expected to be launched around March 2026. Given the slow progress, regulatory challenges, shortage of land and rising leasing rates, targets are expected to be rationalised, and policies would be expected to address the pain points. A substantial allocation in this is also expected.
To diversify the energy basket, stabilise the grid and decarbonise hard-to-abate sectors, an increase in allocations in battery energy storage, green hydrogen, Bio Energy and green corridors is expected. In the last Budget, Green Hydrogen received INR 600 crore and bio-energy received INR 325 crore.
Moreover, focus would be on measures to address clean energy supply chain risks, in the face of growing export restrictions from China on lithium-ion battery components, artificial graphite anode materials and other critical minerals. These are crucial for India’s clean energy transition.
On this backdrop, here’s what the industry leaders told Energetica India:
Vinay Thadani, Executive Director & CEO, GREW Solar
As India enters a phase of large-scale renewable deployment, Budget 2026 needs to move beyond a sole focus on capacity addition and pay closer attention to the ecosystem that supports sustained growth. While Budget 2025 increased allocations to the renewable sector through higher MNRE funding, initiatives such as PM Surya Ghar and PM-KUSUM, and continued support for green energy corridors and distribution reforms, some gaps remain. Access to long-term, affordable financing for manufacturing and project development is still limited, particularly for emerging players. In addition, more stable and predictable policy frameworks around tariffs, incentives and project contracts would help improve investor confidence. Addressing these areas in the next budget would strengthen the foundations of India’s renewable energy growth and support a more reliable transition at scale.
Suhas Donthi, President & CEO, Emmvee Photovoltaic Power Ltd.
While Budget 2025 strongly supported deployment in residential solar, there is an opportunity to further strengthen the structural enablers required for long-term scale. Areas such as manufacturing depth, grid readiness, and access to affordable financing for manufacturing will be increasingly critical and merit greater attention going forward. As India progresses from around 260 GW today toward the ambitious 500 GW target by 2030, these elements become even more important. At the same time, sustained support for R&D in solar technologies is essential for improving efficiency, reducing costs, and building global competitiveness, also needs deeper consideration. In essence, a more holistic focus on ecosystem-level investments will be key to supporting the next phase of growth and from this budget, we look forward to such moves.
Vineet Mittal, Chairman, Avaada Group
On direct taxes, we strongly advocate zero income tax on dividends from renewable energy SPVs to their holding companies to enable efficient capital recycling and lower tariffs. Equally important is providing clarity that income earned during the construction period should be treated as a capital receipt and reduced from the project cost, which will significantly reduce litigation and improve ease of doing business. On indirect taxes, energy storage must be recognised as a core power asset. While electricity is GST-exempt, BESS and pumped storage services attract 18 percent GST with no ITC benefit. Reducing GST on storage charges to NIL will directly lower the cost of renewable power. We also seek zero BCD and IGST for at least five years on capital equipment for manufacturing solar glass, ingots, wafers, cells, modules, batteries and advanced TOPCon and HJT technologies, where imported equipment currently inflates project costs by 20–30 percent. We also request rationalisation of project finance norms, including reducing the 75 percent land acquisition requirement to 50 percent or less, and waiver of refinancing prepayment premiums.
Aditya Pyasi, CEO, IWTMA (Indian Wind Turbine Manufacturers Association)
As India accelerates its clean energy transition, the domestic wind manufacturing sector stands at a pivotal juncture, driven by the rapid deployment of 5 MW-plus turbine platforms. The forthcoming Union Budget must play a catalytic role in strengthening manufacturing capability, innovation, and competitiveness across the wind value chain. A targeted tax incentive for wind testing infrastructure is vital to address India’s limited capacity to test large blades and high-capacity drivetrains, reduce reliance on overseas facilities, and shorten product development cycles. Equally important is sustained fiscal support for R&D, as Indian manufacturers continue to localise advanced technologies to suit Indian operating conditions. Rationalising indirect tax structures for towers, blades, nacelle components, and internal assemblies will further ease cost pressures. Waiving duties on critical raw materials, correcting inverted duty structures will deepen localisation and enhance global competitiveness. With the right policy support, India’s wind sector can evolve into a resilient, innovation-led manufacturing hub.
Rupal Gupta, Founder, MD & CEO, TrueRE Oriana Power
As India enters the next phase of its clean energy transition, the forthcoming Budget is an opportunity to create long-term stability and unlock the next wave of investments in renewables. I believe purpose-built financial mechanisms, such as a dedicated renewable energy fund, a separate budget line under MSME or Startup India for non-rated but high-potential companies, and a clear policy framework enabling direct partnerships between PSUs and private developers beyond traditional tenders, will help accelerate the energy transition. A government-backed risk mitigation framework would also go a long way in addressing payment delays and market uncertainties, while boosting investor confidence. Sustained support for R&D across renewable technologies, storage, and grid integration can also help drive innovation and cost competitiveness. Finally, scaling green hydrogen through targeted funding, mandates, and viability gap support can accelerate adoption in hard-to-abate sectors. Together, these measures can strengthen India’s renewable energy ecosystem and reinforce its global clean energy leadership.
Srivatsan Iyer, Global CEO, Hero Future Energies
The government has laid a strong foundation for India’s renewable energy sector through consistent policy support and sustained capacity addition. To further strengthen the sector, the upcoming Union Budget must announce additional measures aligned with India’s climate commitments and global competitiveness. Priority should be given to incentivising investments in green hydrogen, grid-scale energy storage, modernisation of transmission infrastructure, and introducing targeted PLIs or tax incentives to enhance energy security and build alternative material ecosystems. Together, these steps can reduce risk, improve grid reliability, and enable renewables to scale in a more efficient and commercially sustainable manner.
Samrath S Kochar, Founder and CEO, Trontek Electronics Ltd.
As India advances its clean-energy and e-mobility vision, the upcoming Budget is an opportunity to accelerate momentum in advanced battery manufacturing and energy-storage technologies. Policy measures that promote localisation of critical components, incentivise R&D for next-generation chemistries, and establish a clear framework for battery recycling and second-life deployment will be instrumental in strengthening India’s energy-security roadmap. We also look forward to continued policy encouragement for EV adoption, particularly in the two- and three-wheeler segments, and a stronger integration of storage solutions within the renewable-energy value chain. A stable, long-term policy regime supported by targeted manufacturing incentives under ‘Make in India’ can help position India as a global hub for lithium-ion batteries and sustainable energy solutions.
Manish Dabkara, Chairman and MD, EKI Energy Services, President, Carbon Markets Association of India
Budget 2026-27 is an opportunity for India to move from climate ambition to climate execution. Our net-zero pathway demands that green priorities are not confined to vision statements but embedded into the mechanics of public finance. Introducing a comprehensive Climate Financing Statement, linked to a clear national climate taxonomy, would allow policymakers and markets alike to see how budgetary allocations truly support mitigation, adaptation and hard-to-abate sectors. This level of fiscal clarity is essential to build trust, prevent greenwashing and attract long-term ESG capital. But transparency alone will not deliver the transition. The budget must also strengthen the engines of green growth. Continued support for renewable energy, grid resilience and energy storage, including incentives for domestic battery manufacturing, is critical to securing clean energy supply chains and reducing import dependence. Targeted measures for green manufacturing, EV mobility and sustainable buildings can further integrate climate action into the real economy and job creation. India’s carbon markets should be nurtured as a parallel pillar, with policy certainty that encourages high-integrity projects and enables private capital to complement public finance in delivering emission reductions and removals at scale.
Piyush Goyal, Co-Founder & CEO, Volks Energie
While Budget 2025 focused on momentum building, the focus now must be on the removal of operational bottlenecks. A clear example of such an area is energy storage. With storage requirements expected to grow exponentially in line with the generational capacity, the viability gap funding announcement shall require an overhaul. What the industry now looks forward to is a clear and viable deployment roadmap which also incorporates use cases, tender timelines and offtake mechanisms. What has been a clear miss in the renewable and energy conversation and policies has been the focus on the demand side efficiency. Cooling accounts for close to 40 percent electricity consumption in commercial buildings. Incentivising the integration of high-efficiency HVAC systems, which are integrated with solar and storage, will work towards a reduction in peak demand and lower energy bills.
Chandra Kishore Thakur, Global CEO, Sterling and Wilson Renewable Energy Group
As we look ahead to the Union Budget 2026, the renewable energy sector anticipates measures that streamline regulatory approvals and land acquisition processes for large-scale projects. Enhanced budgetary support for transmission line development and evacuation infrastructure will be essential to align execution timelines with national targets. A policy focus on single-window clearances and dedicated transmission funding will support MNRE's drive towards 500 GW by 2030, bridging existing gaps in connectivity and infrastructure planning.
Shreya Mishra, CEO, SolarSquare
India has 26 crore homes with an electricity connection, and the residential segment accounts for one-fourth of the country’s electricity consumption. In 2024, India announced a subsidy scheme to solarise one crore homes, out of which 30 lakh homes are expected to be covered by March 2026. My hope with this Budget is that the subsidy is extended to another 50 lakh to one crore homes —this time for solar paired with batteries. This would be transformative in making India energy-independent and help the country move away from free electricity politics, towards a more sustainable model where people make their own free electricity.
Akshat Jain, CEO, KLK Ventures
As India looks ahead to the Union Budget FY2026, the renewable energy sector expects strong policy continuity and enhanced incentives to accelerate the nation’s clean energy transition. Increased support for solar infrastructure, domestic manufacturing, and grid-scale as well as decentralised solutions will be critical to achieving India’s sustainability and energy security goals. Budgetary focus on ease of doing business, financing access for MSMEs, and innovation in energy storage and smart grids can further strengthen industry growth. A stable, forward-looking policy framework will empower companies to scale solar adoption and drive long-term environmental and economic impact.
Jaideep N. Malaviya, MD, Malaviya Solar Energy Consultancy
Frequent tariff changes by electric utilities and regulatory hurdles are creating uncertainty for rooftop PV consumers. The budget must allocate more funds to utilities to protect the consumers from such uncertainties. Also, the government must constitute a Ministry of Circular Economy to tackle the mounting waste resources, allocating a suitable budget to regulate.
Harry Bajaj, Founder and CEO, Mobec Innovation
We seek some more forward-looking incentives (Production Linked Incentives) for the battery recycling industry, as the first lot of e-vehicles (especially commercial) are going to hit their end-of-life cycle soon. All their batteries would need to be recycled/repurposed in a sustainable manner, else they will just end up in landfills, increasing carbon footprints. This needs to be extended to lithium, cobalt and nickel and rare earth minerals as well.
Anurag Choudhary, CMD and CEO, Himadri Speciality Chemical Ltd.
Increasing geopolitical tensions have intensified global competition for critical minerals, making access to resources such as lithium, cobalt, nickel, and rare earth elements central to future progress. With global supply chains highly concentrated and China holding the lion’s share of processing and refining capacity, it is imperative for India to ensure a stable domestic supply and greater control over the exploration, processing, refining, and recycling of these materials. Focused policy support and targeted investments will be required to reduce import dependency and strengthen supply-chain resilience. Long-term availability and stability can be achieved only through advanced technology-led alternatives, localisation, and strategic partnerships. I expect Budget 2026 to be proactive, building upon previous allocations and strengthening support across these areas to enable a self-reliant, competitive, and sustainable clean energy ecosystem in line with the vision of Atmanirbhar Bharat.
Nikhil Agarwal, President, CJ Darcl Logistics Ltd.
The Union Budget 2026–27 should focus on strengthening the logistics ecosystem through execution-led reforms with clear carbon-reduction outcomes. Faster multimodal integration, particularly greater rail and coastal share supported by efficient first- and last-mile connectivity, can significantly lower logistics costs while delivering meaningful reductions in carbon emissions. A critical priority must be the driver ecosystem. Investments in driver training, upskilling, safety, and high-quality rest infrastructure, linked to performance and efficiency incentives, will improve reliability and address the growing shortage of skilled drivers. The Budget can also play a catalytic role by introducing outcome-based incentives linked to measurable carbon emission reductions in logistics operations. Encouraging the adoption of alternative fuels and electric mobility, along with investments in charging and refuelling infrastructure, will enable fleet operators to transition sustainably without compromising economics.
Sameer Gupta, Chairman, Jakson Group
We see merit in a continued expansion of the Production-Linked Incentive framework to support large-scale manufacturing across India’s solar value chain, particularly in upstream segments such as ingots and wafers. Deeper integration across balance-of-system components, energy storage, and hybrid and distributed solutions will further strengthen domestic capability and reduce import dependence. At the same time, sustained investment in modernising transmission and distribution infrastructure, including interstate corridors, smart grids, digital forecasting, and storage-linked evacuation, will be essential to support higher renewable capacity and ensure reliable grid operations. Improved access to long-term, affordable green finance, including tax-efficient Green Bonds, alongside targeted support for green hydrogen and green ammonia, can accelerate adoption across sectors. Together, these measures can help ensure that the Made in India label becomes synonymous with efficient, reliable, and globally competitive clean energy solutions.
Gyanesh Chaudhary, Chairman and Managing Director, Vikram Solar
Budget 2026 must take an integrated approach- strengthening Energy Storage Obligations through fiscal incentives, extending PLI coverage to future-ready technologies and critical minerals, and supporting digital energy platforms to manage demand efficiently, ease grid stress, and unlock new value streams for both producers and consumers. Further, it is critical to invest in skill development for the clean energy ecosystem, including enhanced funding for solar manufacturing skill programmes and the integration of specialised solar curricula across technical institutes and ITIs, to ensure workforce readiness keeps pace with rapid capacity expansion. Equally important is the rationalisation of SEZ–DTA norms, specifically removing customs duty on value addition. It is long overdue and essential to restore competitiveness, support manufacturers navigating global trade disruptions, and ensure India’s clean energy manufacturing ambitions remain export-oriented and resilient.
Simarpreet Singh, Executive Director & CEO, Hartek Group
Budget 2026 must be the ‘Infrastructure Budget’ for India’s power sector. As renewable capacity scales rapidly, the real bottleneck has shifted to whether our grids, storage systems and execution capabilities are ready to absorb and move clean power reliably. As India looks to Budget 2026, the priority must move beyond capacity creation to building a grid that can actually store, transmit and balance renewable energy at scale. Budget 2026 must recognise grid strength, energy storage, skilled manpower and domestic manufacturing as strategic enablers of India’s energy transition, not peripheral add-ons. Only then can renewable scale translate into stable, bankable and sustainable outcomes. The Budget must respond with decisive investments in grid modernisation. On the manufacturing front, extending Production-Linked Incentive schemes across the entire solar value chain and key grid equipment will reduce import dependence and strengthen India’s energy security.
Raj Kumar Medimi, Executive Director, Trinity Cleantech
As India accelerates its journey toward becoming a USD 5 trillion economy, the upcoming Union Budget presents a critical opportunity to strengthen the country’s power and energy infrastructure at the grassroots level. We expect the Budget to place sharper emphasis on transmission and distribution (T&D) upgrades, reduction of technical losses, and large-scale modernisation of transformers and substations, which form the backbone of reliable power delivery. For domestic manufacturers, policy continuity through schemes like PLI, coupled with stricter quality benchmarks and stronger enforcement against sub-standard imports, will be key to creating a level playing field. Incentivising high-efficiency, low-loss transformers and supporting indigenously manufactured electrical equipment can significantly reduce long-term system costs for DISCOMs.
Sanjay Choudhari, Chairman, SBL Energy
The forthcoming Union Budget 2026 calls for a transformative opportunity to substantially boost India's infrastructure and mining sectors. We strongly anticipate strong initiatives that indicate significant capital investment into large-scale projects, incentivise the adoption of innovative green technology, and rationalise duties on critical materials to reduce cost constraints. Besides this, streamlined regulatory frameworks, like single-window approvals, are critical for promoting ease of doing business and unlocking private investment. Such forward-thinking changes would spur innovation, boost global competitiveness, and establish India as a leader in long-term industrial growth. A visionary budget would not only stimulate economic growth but would also strengthen the country's commitment to resilience, self-reliance, and environmental care.
Ravi Mehra, MD, Uno Minda
As India prepares for Union Budget 2026–27, the auto component sector looks forward to a policy framework that accelerates manufacturing competitiveness, innovation, and exports. Extending and deepening the PLI-Auto scheme to include EV subsystems, such as sensors, semiconductors, and advanced electronics, will be critical to strengthening domestic value addition. We also see strong merit in higher R&D incentives, a dedicated innovation fund for automotive electronics and clean mobility technologies, and faster tax dispute resolution mechanisms to unlock capital for growth. We also expect better ease of doing business by rationalising GST and customs duties, resolving inverted duty structures, and offering a stable, predictable tax regime, which will further enhance ease of doing business. With focused support on exports, talent attraction, and technology-led compliance, the Budget can play a pivotal role in positioning India as a global hub for future-ready automotive and mobility solutions.
Satyen J. Mamtora, CEO and MD of Transformers and Rectifiers (India) Ltd. (TARIL)
India’s energy transition will require a stronger and more resilient grid. Ahead of Union Budget 2026, we look forward to a sharper focus on transmission expansion, faster approvals and a single-window mechanism to address right-of-way delays. Increased support for energy storage and timely structural reforms will be crucial to enable large-scale renewable integration. A consistent policy push on grid modernisation and indigenous manufacturing of critical equipment such as transformers and storage systems will strengthen energy security, enhance competitiveness, and accelerate India’s progress towards its clean energy goals.
Shobit Rai, Co-Founder and MD, Prozeal Green Energy
India has added renewable capacity at a record speed, yet, less than a tenth of our power system today is supported by large-scale storage. “As renewable penetration rises, the budget must acknowledge that energy transition is no longer about generation alone; it is about reliability. Prioritising grid-scale storage, green hydrogen, and flexible infrastructure will determine whether clean power can replace fossil fuels at scale. Targeted incentives for domestic manufacturing of electrolysers, batteries, and power electronics can significantly reduce import dependence. A budget that aligns power, industry, and infrastructure will define India’s ability to lead, not just participate, in the global energy transition.
Neerav Nanavaty, CEO, BluPine Energy
India’s renewable energy sector delivered a strong step-up in 2025, with accelerated wind and solar additions taking total installed renewable capacity beyond 247 GW. This progress reflects sharper execution across land acquisition, right of way, permitting, and grid-linked infrastructure, supported by improving centre–state coordination. The recent pre-budget consultations have further underlined a clear policy intent to strengthen infrastructure, enable equitable funding, and sustain long-term growth. As capacity continues to scale, focused investments in transmission and evacuation infrastructure will help maintain momentum. Strategic grid expansion, hybrid project configurations, and the increasing deployment of BESS are enhancing reliability and dispatchability. Along with faster conversion of bids into power purchase agreements and power sale agreements, these developments are boosting investor confidence and positioning India’s renewable ecosystem for resilient, infrastructure-ready growth through 2026 and beyond.
Kaushik Tanti, Chief Operating Officer, REPLUS
The Ministry of Power approved a new VGF scheme for 30 GWh BESS capacity in June 2025, allocating Rs 5,400 crores from the PSDF fund. We expect Ministry of Power to allocate similar VGF funds to support additional set up of 100 GWh BESS capacity. Under Atma Nirbhar Bharat initiatives extend PLI scheme for Battery energy storage ecosystem, including manufacturing of anode, cathode and BESS. As we approach the Union Budget, the industry looks forward to continued support for India’s clean energy transition. We urge an expansion of the existing VGF framework for BESS to enable large-scale grid storage and renewable integration. With FAME II concluding, a successor EV incentive framework is essential to sustain adoption, especially in mass-market segments. Overall, continued focus on clean, reliable, and affordable energy will be critical to achieving India’s long-term energy and climate goals.
Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd.
As India accelerates towards its 500 GW non-fossil fuel target, Budget 2026 presents a critical opportunity to further strengthen domestic solar module manufacturing. While initiatives like PLI have laid a strong foundation, the next phase must focus on long-term competitiveness. We urge the government to extend and deepen incentives for fully integrated manufacturing, from ingots and wafers to high-efficiency modules, along with rationalised customs duties on critical raw materials not available domestically. Additionally, access to low-cost, long-tenure financing and infrastructure support for manufacturing clusters will be vital to scale capacities and reduce cost pressures. Budgetary support for R&D, advanced technologies such as TOPCon and HJT, and skilling programs will help Indian manufacturers compete globally while ensuring quality and reliability. At AXITEC Energy India, we believe a stable and forward-looking policy framework in Budget 2026 can transform India from a manufacturing alternative into a global hub for high-efficiency solar modules.
Yogesh Kudale, Co-Founder & CEO, TAYPRO
The Union budget for 2026 is expected to be a game-changer for the clean energy sector, considering the government’s previous priorities of enhancing domestic renewable energy capacity. From schemes that strengthen renewable technology companies and empower them to scale to supporting technological developments such as high-tech automation, robotics and patented binary solutions, we also expect the government policies to be clear and simplified, as well as the introduction of a fast-track approval mechanism and an aligned funding framework. Preference to the areas of sustainable technology, local production and industry-specific acceleration on the budgetary side will certainly play a major role in the process of innovation-driven growth and opening of markets. Moreover, the provision of tax benefits for patented technologies and the creation of specialised funds can make the investor community more receptive. Lastly, the burgeoning of the green employment sector due to the growth in renewables would be a significant contribution to the smart utilisation of resources and, at the same time, place India in the forefront of the race for the next generation of renewable energy innovations.
Megha Arora, Partner, CMS IndusLaw
India has achieved a significant milestone in FY 2025-26 by reaching 50 percent of its cumulative installed electricity capacity from non-fossil fuel sources, 5 years ahead of the 2030 target under its Nationally Determined Contribution to the Paris Agreement. With scale largely achieved, the Union Budget 2026–27 is expected to shift focus towards strengthening the sustainability, reliability, and resilience of the Indian power sector.Key expectations include enhanced budgetary and policy support for energy storage systems (ESS) and transmission infrastructure. ESS is critical to address the variability of renewable energy and maintain grid stability. Parallelly, targeted investments in transmission networks are necessary to address curtailment challenges in renewable-rich regions. Expectations remain for further momentum in nuclear energy, supported by the National Nuclear Mission and the SHANTI Act, as part of India’s non-fossil energy strategy.
Shreevardhan Sinha, Senior Partner, ESG, Desai & Diwanji
India’s renewable energy scale-up is no longer constrained by ambition, but by capital efficiency and regulatory clarity. Budget 2026 should focus on providing tax certainty for hybrid and storage-linked renewable projects, enabling fiscal incentives for domestic manufacturing of clean-energy components, and clarifying the treatment of long-duration power purchase agreements. Aligning tax policy with grid integration, energy storage, and transition finance will be critical to sustaining investor confidence and accelerating India’s clean-energy transition.
Jitendra Kumar Agarwal, Joint Managing Director, Genus Power Infrastructures Ltd.
India’s smart metering journey has reached a decisive stage. Large-scale rollouts are underway across states, and the focus must now shift from intent to execution quality. The upcoming Budget can strengthen this transition by supporting certified, reliable smart meters, resilient communication networks, and deeper integration with DISCOM operations. For utilities, smart metering is about far more than technology. It is about improving billing accuracy, reducing losses, and restoring financial discipline at the last mile. Equally important is continued encouragement for domestic manufacturing, which ensures consistency in quality and long-term supply security. A well-directed Budget push will help DISCOMs build stable, scalable systems that deliver measurable outcomes for the power sector.
Rahul Gautam, Co-Founder of Exeliq Tech Solutions
The Budget should expand PLI support from capacity creation to regulatory readiness, covering battery testing, traceability and lifecycle compliance. As EV battery regulations evolve, MSMEs need credit guarantees, simplified digital compliance and export promotion support to invest in safety, certification and traceability. These measures are critical to reduce import dependence and build a credible, Atmanirbhar EV ecosystem.
Radhika Choudary, Co-founder & Director, Freyr Energy
As India moves closer to its net-zero commitments and ambitious rooftop solar targets, the upcoming Union Budget presents a critical opportunity to accelerate decentralised clean energy adoption. We hope to see continued policy support for rooftop solar through stable incentives, simplified GST structures, and enhanced financing mechanisms that make solar more accessible for households and MSMEs. Strengthening the PM Surya Ghar Muft Bijli Yojana with faster subsidy disbursements and broader awareness initiatives will be key to driving last-mile adoption. Additionally, budgetary support for domestic manufacturing, innovation-led technologies, and digital platforms can significantly improve system quality, performance monitoring, and long-term reliability. From an industry perspective, easier access to low-interest green financing, especially for residential and rural consumers, will be a game-changer. The focus should also extend to skilling, grid modernisation, and storage solutions to support the next phase of renewable growth.
Sanjeev Srivastava, Head of Industrial Automation, Delta Electronics India
Industrial automation is a key growth lever for India’s manufacturing competitiveness as the economy scales towards the USD 5 trillion milestone. Smart factories, AI-driven automation, and human-machine collaboration will be central to this transition. Ahead of the budget, stronger support for smart manufacturing incentives, R&D tax benefits, and skill-development programs will help industries adopt next-generation technologies faster. These measures will improve efficiency, lower costs, and strengthen India’s position on the global manufacturing and automation curve.
Aveg Agarwal, India Business Head, Bidgely
The launch of the India Energy Stack (IES) gives the Union Budget a pathway to move power sector reforms from asset creation to intelligence-led value creation. As India advances towards a USD 5 trillion economy and its Net Zero goals, the Budget should prioritise targeted incentives for AI-driven analytics, secure digital infrastructure and capability-building within discoms. This will enable utilities to monetise data from the 50 million smart meters already deployed under RDSS, improve demand forecasting, lower peak power procurement and reduce non-technical losses estimated at USD 10 billion annually. Anchoring reforms around measurable efficiency, financial sustainability and consumer outcomes will make electricity more reliable, truly placing ‘power to empower’ at the heart of India’s energy transition.
Shivam Sisodiya, Co-Founder & CEO, Bijliride
As India gears up for Union Budget 2026, the electric mobility ecosystem stands at a pivotal moment. Over the past few years, government intent has translated into rising consumer adoption, especially in two-wheelers and last-mile mobility. To accelerate this shift, we believe the upcoming budget must focus on targeted interventions that enable scale. First, recognising rental, subscription, and EV-as-a-service models is critical, as they make clean mobility far more accessible for gig workers and small businesses. Second, improving access to affordable capital will help EV startups manage vehicle procurement and infrastructure investments more efficiently. Third, deeper support for charging and battery-swapping infrastructure at the neighbourhood and city level will reduce operational friction. Lastly, encouraging domestic manufacturing through tax incentives and localisation benefits will strengthen India’s EV value chain. With the right policy continuity, India has the opportunity to move from intent to execution and make sustainable mobility truly mainstream.
Sangeeta Srivastava, Executive Director, Godavari Biorefineries Ltd.
Having successfully achieved E20 blending ahead of schedule, India now faces a productive surplus that requires urgent demand-side policy innovation. Budget 2026 should focus on incentivising E100-ready infrastructure and accelerating the mandate for Sustainable Aviation Fuel (SAF) to absorb this additional ethanol capacity. It will lead to a strategic shift toward ethanol-to-chemicals and high-value bio-based derivatives is essential. This budget must provide the fiscal framework to transition from fuel blending to a global leadership role in the Sustainable Chemical economy.
Aveen Padmaprabha – Business Head of Industrial Quality Solutions at ZEISS Group, India
The upcoming budget offers a critical opportunity to advance India’s automotive component manufacturing sector, aligning with the 'Make in India' vision and strengthening the country’s position in the global supply chain. Strategic reforms, such as rationalising GST rates, introducing targeted incentives for EV component production, and expanding support under PLI schemes, can significantly enhance domestic manufacturing capabilities while reducing reliance on imports. Addressing challenges like high import duties and cess credits will be vital to improving cost competitiveness and fostering local sourcing. With the right policy framework, India has the potential to become a global hub for innovative, high-quality automotive components, driving sustainable economic growth and reinforcing its role in the international market.
Samrath S Kochar, Founder and CEO at Trontek Electronics Ltd.
As India advances its clean-energy and e-mobility vision, the upcoming Budget is an opportunity to accelerate momentum in advanced battery manufacturing and energy-storage technologies. Policy measures that promote localisation of critical components, incentivise R&D for next-generation chemistries, and establish a clear framework for battery recycling and second-life deployment will be instrumental in strengthening India’s energy-security roadmap. We also look forward to continued policy encouragement for EV adoption, particularly in the two- and three-wheeler segments, and a stronger integration of storage solutions within the renewable-energy value chain. A stable, long-term policy regime supported by targeted manufacturing incentives under ‘Make in India’ can help position India as a global hub for lithium-ion batteries and sustainable energy solutions.
Tarun Singh, VP and Market Leader India, AVEVA
India is entering a decisive phase in its energy journey, where rapid economic growth, large-scale electrification, renewable expansion, and AI-driven demand from industries and data centres are converging simultaneously. According to the International Energy Agency’s World Energy Outlook, India is set to be the world’s largest driver of energy demand growth through 2035, with total energy demand increasing by more than 15 exajoules, nearly matching the combined demand growth of China and Southeast Asia and electricity demand projected to grow by around 80 percent by 2035, the fastest rate among major economies. While generation capacity is scaling well and India is on track to achieve 500 GW of non-fossil fuel capacity by 2030, the real challenge and opportunity lies in modernising grids and distribution to make them intelligent, resilient, and financially sustainable. The future growth roadmap for India’s energy sector depends on digitally connecting generation, grids, and consumers, using real-time data, AI-driven forecasting, and digital twins to reduce losses, integrate renewables reliably, and plan demand proactively.
Akshay Hiranandani, CEO, Serentica Renewables
India’s clean energy transition is moving from capacity addition to reliable, round-the-clock green power delivery. With 31.25 GW of non-fossil capacity added this year, investor interest and execution on the ground remain strong. However, instances of curtailment at certain pooling stations due to transmission constraints, despite full asset availability, highlight the need to accelerate grid-strengthening efforts already underway. As we step into 2026, the focus must shift grid integration and reliability. For renewables to compete effectively with thermal power, sustained policy and budgetary support must be complemented by targeted budgetary support for grid capacity building. Grid India, as the custodian of grid operations, needs advanced tools and technologies to manage rising renewable penetration. Investments in STATCOMs, grid-forming inverters, dynamic line rating and grid-forming batteries will be critical to enhance power flows in high renewable zones while preserving system resilience. Energy storage will be central to the next phase. From an operational standpoint, the intermittency of renewables requires batteries to be deployed as grid assets, not just as commercial storage projects. Sudden wind gusts or cloud cover can cause sharp, large-area generation swings, requiring fast responding resources to stabilise the system. Battery systems under Grid India’s control can support frequency regulation, manage ramping requirements and meet evening peak demand. To enable this at scale, Viability Gap Funding for grid-connected battery assets will be essential. Such support can unlock the next phase of growth in storage deployment, strengthen grid operations in high renewable-penetration zones and ensure reliable, 24/7 integration of renewable power.
Nitin Chitkara, CEO, MMCM
As India moves towards becoming a developed nation, circularity must be treated as core economic infrastructure, not a side policy. True superpower status will not be defined only by financial growth, but also by clean air, clean water, and resource efficiency. This Budget presents a critical opportunity to accelerate a high-circularity ecosystem by rationalising GST on products and services pertaining to recycled materials, an example being the government-issued Certificates of Deposit on end-of-life vehicles. Incentivising formal, traceable recycling will not only strengthen domestic supply chains but also position India as an emerging environmental superpower.
Yashodhan Ramteke, CEO, EcoGuard
India’s hardest-to-abate sectors such as steel, cement, aluminium, chemicals, and power are at the centre of the country’s carbon market transition, but they are also absorbing disproportionate technology, capital, and data risks in the early years of compliance. These industries are being pushed to invest in efficiency upgrades, process changes, and emissions measurement well before carbon prices are fully visible or stable. That creates pressure. Time-bound fiscal incentives tied to verified emissions cuts, strong MRV deployment, and outcome-based decarbonisation support can close this gap. The goal is simple. Early movers should not be punished for acting first. Decarbonisation should reinforce industrial competitiveness rather than erode it.
Ankur Khaitan, Managing Director and CEO, TACC
As India approaches Union Budget 2026, the clean energy transition must move from demand stimulation to deep manufacturing self-reliance in critical battery materials. While EV adoption under allied policies is accelerating, true energy security will come from domestic control over the full cell component supply chain, including anodes and advanced materials. Amid growing global trade fragmentation and tariff risks, building resilient and circular value chains within India is now a strategic imperative. Equally important is a mission-driven focus on Research & Development from applied research to rapid commercialisation of next-generation materials including silicon and graphene, which can fundamentally reshape industries. With aligned policy frameworks, sustained R&D support, and targeted incentives, India can move beyond import substitution and emerge as a global hub for advanced technology development and manufacturing in the battery and green space. We remain optimistic that Union Budget 2026 will take decisive steps in that direction.
Devansh Jain, Executive Director, INOXGFL Group
As India accelerates its clean-energy transition, INOXGFL Group’s focus has been on strengthening the foundations of a truly integrated renewable-energy ecosystem. Some of the key steps which we have taken over the past couple of years to build a stronger, more resilient organisation include the expansion of our solar and wind manufacturing footprint across India and globally, scaling our renewable power generation capacity organically and through acquisitions across multiple geographies as well as simplifying our renewable business structure. Supportive and consistent government policies have played a vital role in this journey. Regulatory clarity has given the renewable industry the confidence to innovate, collaborate, and execute large projects, fortifying ’Make in India’ and ‘Aatmanirbhar Bharat’. We hope that this favourable macro environment will continue, because policy continuity is what ultimately turns ambition into reality. As we look ahead, including to the upcoming Union Budget FY27 — our expectation is that the focus on clean energy remains positive, especially around increasing transmission capacity, enabling grid flexibility, storage, and resolving ongoing issues, leading to capacity addition growth required to achieve our 2030 target of 500 GW of installed renewable capacity.
As we approach Union Budget 2026-27—a milestone coinciding with the second anniversary of the PM Surya Ghar Muft Bijli Yojana—we have a defining opportunity to transition from solar awareness to seamless, large-scale execution. While the scheme has already achieved nearly 27 percent of its 10-million-household target, this progress is just the tip of the iceberg. According to CEEW, India has a realistic residential rooftop potential of 118 GW, accounting for current consumption levels. To bridge the gap and tap into immense potential, the upcoming Budget must prioritise additional fund allocations alongside a strategic focus on grid modernisation and deeper digital integration between state DISCOMs and the National Portal, combined with a decisive plan to resolve Domestic Content Requirement (DCR) supply chain bottlenecks. This will help in truly democratising clean energy for every Indian rooftop.
Radhika Kalia, Managing Director, RLG Systems India
I expect that the Union Budget 2026 does not rely heavily on incremental tax tweaks and communicates a coherent reforms narrative that lowers barriers for long-horizon, sustainability-linked capital. In the waste and circular-economy domains, the binding constraint more than just intent is the cost of patient capital, permitting speed, and predictable compliance architecture. I hope the budget signals sustainability outcomes at scale, and mainstreams climate and circular finance tools such as a Green Bank or Climate Finance Facility to de-risk private investment in recycling, resource recovery, and clean infrastructure. These initiatives must also be paired with targeted R&D incentives for waste-processing technologies. Globally, assessments show circular-economy strategies can cut a large share of emissions, even around 40 percent by 2050 when focused on key materials. So, finance combined with execution capacity assumes significance as a national competitiveness issue.
Nitin Gupta, Co-Founder & CEO, Attero
As India approaches the Union Budget 2026, there is a strong opportunity to firmly position critical minerals, recycling and rare earth elements as strategic enablers of long-term economic and industrial self-reliance. Recycling today is not only about sustainability, it is about material security. India continues to rely heavily on imports for lithium, cobalt, nickel and rare earths that power electric mobility, clean energy, electronics and defence. Building native recycling, refining and recovery capabilities are some practical ways to reduce this dependence and create resilient, domestic supply chains. E-waste, end-of-life batteries and industrial scrap represent a strategic resource base that can be unlocked at scale through technology. Budget 2026 can accelerate this transition by recognising recycling and advanced materials recovery as core industrial infrastructure, enabling easier access to long-term capital and encouraging Indian deep-tech innovation in automation, robotics and process engineering. Targeted fiscal incentives for advanced recycling technologies, rare earth processing and downstream manufacturing will help Indian startups and scale-ups compete globally. With the government’s growing mission-level focus on critical minerals, this budget has the potential to convert intent into impact, strengthening Atmanirbhar Bharat and advancing a truly circular economy.
Vaibhav Kaushik, Co-Founder & CEO, Nawgati
As India looks at the future of mobility and energy through the Union Budget 2026, the conversation must move beyond how many chargers or stations we build, to how efficiently we operate the infrastructure we already have. Whether it is EV charging networks or CNG stations, the real gap today is not capacity, but coordination. Globally, energy systems that combine physical infrastructure with real-time digital optimisation have shown significant efficiency gains by reducing congestion, downtime, and operational blind spots, without adding new assets. In India, fragmented data and reactive decision-making continue to result in wasted energy, higher operating costs, and avoidable emissions.The next phase of India’s energy transition will be defined not by asset creation alone, but by how intelligently we run them. Budgetary support for automation, interoperability, and data-driven operations can ensure that every rupee invested in clean energy delivers maximum impact on the ground.
Sravan K Appana, CEO, iGo Wise Mobility
To enable mass adoption of light electric vehicles, Budget 2026 must shift focus from short-term subsidies to long-term ecosystem building. Priority should be given to R&D and New Product Development, with dedicated multi-year funding for vehicle dynamics, safety systems, lightweight architectures and new mobility formats. Innovation cannot emerge without sustained support beyond prototypes. Policy must actively enable new vehicle categories, especially sub-500 kg urban vehicles, by moving away from wheel-based regulation toward function- and performance-based frameworks. Significant CMVR and RTO simplification is required to remove ambiguity, ensure uniform national interpretation and reduce compliance friction. Road safety must be engineering-led, emphasising stability, road-grip and vehicle dynamics rather than only helmet enforcement or sensor mandates. Service quality and long-term reliability should be incentivised through service-linked incentives, faster consumer complaint resolution and transparent reliability ratings to build public trust. Finally, the INR 500 Cr PM e-Drive allocation for electric Type-A ambulances should be operationalised urgently to accelerate first-responder electrification and real-world EV validation.
Kunal Gupta, Co-founder & CEO, EMotorad
The Union Budget comes at a critical juncture for India’s electric mobility journey. While consumer adoption of EVs is accelerating, the next phase of growth will depend on deeper manufacturing support, supply-chain localisation, and demand-side confidence. We expect the Budget to continue its focus on clean mobility through stable policy frameworks, targeted incentives for electric bicycles and light EVs, and stronger support for domestic component manufacturing, especially batteries and motors. Rationalisation of GST on EV accessories and components would further strengthen affordability and scale. Additionally, greater investment in cycling and last-mile infrastructure can unlock the full potential of electric cycles as a sustainable, mass-market mobility solution. At EMotorad, we believe electric bicycles can play a pivotal role in reducing urban congestion, lowering carbon emissions, and enabling inclusive mobility. A forward-looking Budget that balances fiscal prudence with long-term sustainability goals can significantly accelerate India’s transition to cleaner, healthier transportation.
Kushagra Nandan, Co-Founder, LNK Energy
The Government has been very supportive of the Renewable sector. While existing policies have successfully driven capacity expansion and catalysed domestic manufacturing, sustained investor confidence is built on policy stability and assured payment mechanisms. Hence, the Government should continue with the schemes that drive investments in manufacturing and provide payments security for the RE generators. Also, as the generation continues to scale, greater emphasis must be placed on sprucing up grid infrastructure and enabling long-duration storage solutions. Without these systemic enablers, the ability to absorb higher volumes of renewable energy could become a limiting factor.
Arun Sharma, CEO, Resonia Ltd.
Ahead of Budget 2026, the industry’s primary expectation is anchored in two words: predictability and speed. What is needed is a long-term financial roadmap for interstate transmission investments, supported by time-bound approvals and clearer TBCB and SBD frameworks—ensuring the grid evolves not as a bottleneck, but as a catalyst for growth. At the same time, it is important to recognise that a “larger” grid is not necessarily a “stronger” one. Integrating record levels of renewable energy will require a dedicated budget window for grid-strengthening assets, particularly STATCOMs, synchronous condensers, and storage at renewable-rich nodes. These investments offer the most practical and cost-effective way to add resilience and system inertia while transmission capacity continues to expand. Finally, the approach to grid expansion must shift from isolated, year-on-year projects to a transparent, multi-year program that offers long-term visibility to all stakeholders. Moving towards single-window integration, time-bound clearances, and standardised TBCB and SBD norms will be critical to keeping capital, OEM capacity, and technical talent aligned across the value chain. The time has come to make grid development a “no-surprises” program, one that matches the scale and ambition of India’s national energy vision.
Shubham Vishvakarma, Founder and Chief of Process Engineering, Metastable Materials
Policy wise, India has made solid progress on battery recycling and critical mineral recovery front in the past year or so. Budget 2026 can strengthen India’s battery recycling sector by addressing a few gaps. It can better reflect the different roles across the recycling chain, where collection and dismantling are essential, but deeper, end-to-end recycling delivers the final material value. EPR already drives compliance; the opportunity is to more clearly recognise higher-quality recycling outcomes within that framework. Eg. it can incentivise producers to fulfil EPR through audited R3/R4 recyclers by recognising greater recycling outcomes. Additionally, while recyclers make refined secondary metals and metal salts, the budget can support the development of a downstream industry that converts these secondary materials into battery precursors or CAM for domestic use. Together, these steps can turn recycling from a compliance activity into a dependable source of critical minerals for India’s battery ecosystem.
Shashank Sharma, Founder, Chairman and CEO, Sunsure Energy
The current VGF disbursement framework for BESS spreads payments over three years. We believe the disbursement window should be compressed into a single year, with the entire VGF released within six months of COD, once the project has successfully met all technical performance tests specified in the tender conditions. Specifically, we propose that 90 percent of the VGF — beyond the 10 percent released at financial closure — should be disbursed at COD itself, supported by a three-year bank guarantee, instead of the current staggered payout structure. This would materially improve project cash flows without diluting performance safeguards.
In addition, VGF support for Standalone BESS should also be extended to existing utility-scale solar projects, where storage can immediately improve power scheduling, enhance grid stability and system value by preventing curtailments.
Another critical issue is the need to rationalise the taxation and duty structure for BESS and its components. BESS should be carved out as a distinct category with a preferential Basic Customs Duty and cess framework, and GST should be aligned at 5 percent, in line with solar. These changes are essential to unlock scale, improve project economics, and enable storage deployment at the speed the power system now requires.
Ankush Malik, CEO, Juniper Green Energy
As India works towards Viksit Bharat by 2047, Budget 2026 is a timely chance to strengthen the renewable energy ecosystem. The focus must shift from just adding capacity to building a reliable system supported by domestic manufacturing, a strong grid, and scalable energy storage. The sector continues to face challenges such as high financing costs, supply-chain risks, and growing pressure on the grid. As renewable capacity increases, reliability becomes critical. Matching thermal power will require long-term policy clarity and steady investments in grid infrastructure. Grid India must be strengthened with modern tools and systems to manage higher renewable penetration smoothly and safely.
Energy storage will be key to making renewables dependable. Weather-related fluctuations can cause sharp swings in power generation, but grid-scale battery storage operated as grid assets can help balance supply and demand. These systems can support frequency control, manage ramping needs, and meet evening peak demand, ensuring grid stability. To accelerate this transition, domestic manufacturing should be supported through stronger PLI schemes, lower GST on solar components, and affordable financing for integrated hubs. A dedicated fund for battery pack manufacturing will help reduce import dependence. Incentives for storage-linked procurement, simpler open-access rules, and financing for hybrid and round-the-clock projects will further strengthen energy security.
Kartik Daftari, Managing Director and CEO, Hi-Tech Radiators
With the upcoming Union Budget 2026, we see a clear opportunity to increase investments in power transmission, grid modernisation and energy storage infrastructure. As renewable capacity is scaling quickly, strengthening high-voltage networks and storage-led grid flexibility will enhance the reliability and efficiency of the energy ecosystem. Indian manufacturers can integrate deeper into international supply chains through technology-driven capacity development and localisation of critical power equipment. Similarly, streamlining regulatory procedures, expanding access to long-term financing and rationalising indirect taxes will help build businesses with ease. In order to establish India as a competitive hub for next-generation power, we want the forthcoming budget to balance industrial expansion with sustainability goals.
Udai Singh- MD & CEO, Schneider Electric Infrastructure, VP-Power Systems, Schneider Electric India
As India heads into the Union Budget, the country can take pride in the decisive progress it has made in expanding renewable energy capacity across solar and wind. Building on this strong foundation, the next phase of the energy transition must focus on ensuring that clean power is delivered efficiently and reliably to every consumer. Continued budgetary support for grid modernisation, transmission expansion, and smarter, digitally enabled distribution networks will be essential to sustaining the momentum the Government has already created. To further accelerate India’s shift towards Electricity 4.0, the Budget presents a valuable opportunity to prioritise investments that bring real-time visibility, automation, and system-wide flexibility. Demand-side efficiencies, enabled through digital metering, advanced analytics, and intelligent load management—can significantly strengthen the Government’s efforts toward a more resilient, consumer-centric power sector. Making consumption smarter and more efficient will be just as critical as adding new renewable capacity. Energy storage will also play a pivotal enabling role as India deepens its clean energy transition. Battery Energy Storage Systems can enhance grid stability, address intermittency, and help manage peak demand more economically, supporting the Government’s vision of a modern, reliable power system.
Anand S. Kabra, Chairman and Managing Director, Kabra Extrusiontechnik and GEON
The upcoming Budget comes at a critical moment for India’s energy landscape. With the green transition gaining momentum, the industry expects policy measures that not only accelerate adoption but also strengthen the domestic ecosystem for clean energy technologies. Support for energy storage, electric mobility, and advanced electronics will be essential to ensure that India is not just a consumer of future technologies but a global contributor to them. Equally important is a policy framework that encourages innovation, improves ease of doing business, and enables sustainable manufacturing at scale. If aligned well, the Budget can act as a catalyst for long-term growth, positioning India as a leader in sustainable and technology-driven industries.
Mahesh Girdhar, MD and CEO, EverEnviro Resource Management Pvt Ltd.
This Budget is an opportunity to make CBG a bankable pillar of India’s circular economy. Clear feedstock pricing and allocation, revenue parity based on energy equivalence with ethanol, and premium pricing over fossil fuels are critical to unlock investment and climate finance at scale. Pricing frameworks that more accurately reflect CBG’s energy, environmental, and agronomic value can materially improve project viability and enable the structured monetisation of by-products, such as fermented organic fertilisers.
please contact: contact@energetica-india.net.
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