In this special post-Budget feature, Smart Energy brings together reactions and perspectives from senior leaders across India’s clean energy and e-mobility ecosystem on Union Budget 2026. Industry stakeholders share their initial assessments of key policy announcements, allocations, and reform measures, highlighting opportunities, concerns, and expectations from the government as India accelerates its transition toward a sustainable, self-reliant, and net-zero energy future. The views expressed reflect individual perspectives of industry leaders and aim to provide readers with a nuanced understanding of how Budget 2026 is likely to shape investments, innovation, manufacturing, and execution on the ground.
“The Union Budget 2026 reinforces Viksit Bharat and Aatmanirbharta by prioritising energy security, manufacturing, and global competitiveness. With ₹40,000 crore invested in initiatives like India Semiconductor Mission 2.0 and the development of domestic solar components, including solar glass, the government is strengthening self-reliant, technology-led industrial ecosystems. For the solar sector, this push reduces import dependence, boosts exports, drives employment, and accelerates India’s transition to clean energy. With continued reforms supporting infrastructure and ease of doing business, renewable energy manufacturing is well placed to play a key role in India’s growth story”
Vinay Thadani, Director & CEO – GREW Solar
“Budget 2026 is a testament to our nation’s resilience and commitment to growth, even amidst global uncertainty. With a significant increase in capital expenditure to ₹12 lakh crore and energy spending to ₹1 lakh crore, we’re laying the foundation for a sustainable future. Focusing on renewable energy growth, grid modernization, and energy security will accelerate India’s energy transition. Atmanirbhar Bharat pushes with rationalizing policies and incentivizing innovation through PLI and tax benefits for domestic R&D and manufacturing. Bond market reforms will further boost our economic momentum. This inclusive and comprehensive budget ensures we’re on course for continued growth and prosperity”
Girish Tanti, IWTMA Chairman
“We feel that this budget has rightly prioritized India’s energy security, especially the increasing role of renewables towards fulfilling this objective over the long term.
The relief in customs duty for the import of sodium antimonate used in the manufacture of solar glass is a step in the right direction. This move will reduce input costs for solar panel manufacturers and thereby augment domestic solar equipment production, giving an impetus to the entire sector in terms of atmanirbharta.
The extending of basic customs duty exemption for capital goods used for manufacturing Lithium-Ion Cells for batteries, and to those used for manufacturing Lithium-Ion Cells for battery energy storage systems (BESS) is also a welcome decision. We must remember that BESS significantly enhances the viability of solar power by addressing its intermittency and enabling efficient energy management. BESS stores excess solar generation for use during low-production periods, thereby augmenting overall system reliability and economics in the solar industry.
With these new measures, we are certain that renewable energy will play a vital role in India’s sustainable development, powering economic growth while reducing dependence on imported fossil fuels.”
Chandra Kishore Thakur, Global CEO, Sterling and Wilson Renewable Energy Group
“Budget 2026–27 strikes balance between ambition, growth and discipline. With sustained public capex of ₹12.2 lakh crore, a clear fiscal consolidation path, and reforms like the Infrastructure Risk Guarantee Fund, it focuses on building long-term productive capacity rather than short-term stimulus. The emphasis on infrastructure, MSME scaling, transport, digital and logistics readiness sends a strong signal that India is investing for durable growth, competitiveness, and investor confidence.”
Vineet Mittal, Chairman, Avaada Group
“The Union Budget 2026–27 clearly positions manufacturing at the heart of India’s energy transition. By extending customs duty exemptions for batteries, energy storage systems, critical mineral processing, and nuclear infrastructure, the government has provided long-term policy certainty that will accelerate domestic value addition and global-scale manufacturing in India. This budget recognises that energy security, clean energy deployment, and industrial competitiveness are deeply interconnected. The strong push for solar integrated with storage, coupled with support for advanced manufacturing and R&D, reinforces India’s ambition to ‘Make in India for the World’—not just as a market for clean technologies, but as a trusted global manufacturing hub driving the energy transition.”
Dr. Chetan Shah, Chairman & Managing Director, Solex Energy Limited
“Union Budget 2026 reinforces policy stability for renewable energy and manufacturing. The focus is clearly shifting from incentives to execution, scale, and quality. For companies that have invested early in domestic solar manufacturing, this consistency provides long-term confidence and greater visibility for planning and expansion. With the policy direction firmly in place, the emphasis now is on operational excellence, cost competitiveness, and building depth across the value chain. This approach strengthens India’s position as a credible global manufacturing hub for clean energy solutions and supports sustainable, long-term growth.”
D.V. Manjunatha, Founder and CMD, Emmvee Photovoltaic Power Limited
“The Union Budget 2026 gives renewed focus on the government having capital-led growth and developing long-term national infrastructure. The Budget raises capital expenditure to ₹12.2 trillion for FY2026-27, up from ₹11.2 trillion in the previous year, reinforcing infrastructure investment as a key growth driver. The unambiguous difference between revenue spending and capital expenditure, as well as long-term commitments to the development of assets, gives infrastructure developers and manufacturers long-term visibility.
The Budget focuses on the capital formation, monitoring of outcomes and medium-term fiscal planning, which provides a stable policy environment in the energy transition in India. The fiscal deficit is targeted at 4.3 % of GDP for FY2026-27, underscoring continued fiscal stability alongside investment push. The emphasis to productive capital spending and accountability will facilitate grid modernization, a field that is well aligned with the ability of Skipper to supply power equipment, grid enabling systems and advanced engineering solutions.”
Sharan Bansal, Director, Skipper Limited
“There are planned incentives for lithium and nickel processing including ~15 % capital subsidy for new processing plants aimed at strengthening supply chains for battery and storage technologies. The government has also continued the approach of customs duty reductions on critical minerals and related materials, helping lower input costs for green technologies. Additionally, a ₹20,000 crore incentive scheme for carbon capture and storage technologies was unveiled, underscoring the focus on broad decarbonisation pathways.”
Faruk G. Patel, Founder, Chairman & Managing Director, KP Group
“The priority accorded to renewable energy in the Union Budget 2026–27 is a strong and forward-looking step towards India’s sustainable development. By placing solar power, domestic manufacturing, energy storage and grid integration at the centre of the clean-energy transition, the Budget provides long-term policy clarity for the sector. BCD exemptions on critical inputs for solar panels, battery storage, biogas and other clean-energy inputs will make green energy more affordable while giving fresh momentum to domestic manufacturing and local value addition.
The expansion of the PM Surya Ghar Muft Bijli Yojana will accelerate rooftop solar adoption and ensure access to clean, affordable power for millions of households, while initiatives like PM-KUSUM will enhance farmers’ energy self-reliance and income. The focus on storage, grid infrastructure and manufacturing reflects the government’s vision to position India as a global renewable energy leader. This Budget strongly reinforces India’s 500 GW non-fossil capacity target by 2030 and its Net-Zero goal for 2070. Together, these reforms propel India closer to the goal of Viksit Bharat, supported by a resilient and energy- secure economy. As a responsible solar manufacturer, we remain committed to contributing actively to this national mission.”
Manish Gupta, Chairman, INA Solar
“The Union Budget 2026–27 reinforces India’s commitment to a clean energy future. Allocations for the renewable sector have been significantly strengthened, with the Ministry of New & Renewable Energy receiving ₹32,914.7 crore and dedicated support for solar initiatives at ₹30,539 crore, demonstrating more than 30% growth in targeted fiscal backing for solar deployment, grid integration, and decentralised energy projects. Equally noteworthy is the long-term tax incentive for data centres — a tax holiday up to 2047 for global cloud and AI players building Indian data infrastructure — which can accelerate demand for low-cost renewable power. Data centres are among the most electricity-intensive users, and with renewables now the most economically competitive source of power, this move creates a structural tailwind for solar adoption across the digital economy.
Kalpesh Kalthia, CMD – Kosol Energie
“The ₹20,000 crore allocation for Carbon Capture & CCUS in the Union Budget sends a strong signal for India’s low-carbon future. By accelerating CCUS adoption, the budget strengthens industrial competitiveness, enhances energy security, and unlocks new pathways for sustainable exports. Equally encouraging is the enhanced allocation of ₹5,000 crore for the PM-KUSUM Scheme, aimed at accelerating decentralised solar adoption and empowering farmers, alongside a significant increase in funding for the PM Surya Ghar: Muft Bijli Yojana to ₹22,000 crore, reinforcing the government’s commitment to affordable clean energy access for households. Another major boost for the clean energy ecosystem is the removal of Basic Customs Duty (BCD) on capital equipment for BESS manufacturing, a critical step towards building a robust domestic energy storage value chain and supporting grid-scale renewable integration. At IB Solar, we see this as a defining moment—where progressive policy, innovation, and climate responsibility converge to shape the next phase of India’s industrial and energy transformation.”
Abhinav Mahajan, Director, IB Solar
“Budget 2026–27 marks a significant moment for India’s agriculture and rural economy by combining fiscal discipline with sustained public investment. By containing the fiscal deficit at 4.4% of GDP while continuing high capital expenditure, the government has created policy certainty for long-term schemes supporting irrigation, renewable energy, and rural infrastructure. The renewed focus on increasing farmer incomes through productivity enhancement, technology adoption, and water efficiency is particularly important for a sector that contributes nearly 18% of India’s GDP and employs over 45% of the workforce. Efficient irrigation remains one of the strongest levers to boost farm incomes, especially in water-stressed regions where groundwater depletion and erratic rainfall have increased production risks.”
Vivek Gupta, Chairman and Managing Director of Oswal Pumps
“We welcome the Union Budget 2026–27 and appreciate the government’s continued focus on infrastructure-led growth across physical and digital assets. The policy direction and long-term visibility provided in this Budget create a strong foundation for sustained investment in the infrastructure sector.
The 20-year tax holiday for data centres and cloud infrastructure, along with measures such as safe harbour norms for IT and data centre services, is a significant step that will accelerate investments in large-scale data centre development across the country. This is expected to drive substantial demand for EPC capabilities in power, cooling, civil, and integrated infrastructure, creating meaningful opportunities for companies like ours.
At the same time, initiatives such as the Infrastructure Risk Guarantee Fund, new dedicated freight corridors connecting the East and West, the Purvodaya integrated East Coast industrial corridor, seven high-speed rail corridors, the India Semiconductor Mission 2.0, revival of legacy industrial clusters, and the scheme for enhancement of construction and infrastructure equipment collectively expand the execution landscape for mid-sized EPC players. Vikran Engineering sees this Budget as an opportunity to actively participate in building both India’s physical infrastructure and its next-generation digital backbone.”
Rakesh Markhedkar, CMD, Vikran Engineering Limited
“The restructuring of REC and PFC is a welcome step that could strengthen financing for solar projects. These institutions play a critical role in enabling consumer solar adoption—many of our residential customers access loans through NBFCs and banks that ultimately source capital from REC and PFC. Improved operational efficiency and lending capacity at these institutions should translate to better access and terms for consumer solar financing.
The customs duty exemption on solar glass manufacturing inputs, along with the continued support for Battery Energy Storage Systems, reinforces the government’s commitment to building a robust domestic clean energy ecosystem. Combined with the PM Surya Ghar program’s momentum – now serving 2.5 lakh households—we’re seeing strong tailwinds for distributed solar adoption in India.
At Freyr Energy, we’re focused on leveraging these policy supports to make solar more accessible and affordable for the millions of Indian households ready to make the switch to clean energy.”
Saurabh Marda, Co-Founder & Managing Director, Freyr Energy
“The Budget’s emphasis on electronics manufacturing and semiconductor capacity is a positive step for India’s EV charging and renewable energy ecosystem. Strengthening domestic electronics and component manufacturing can unlock large-scale employment while reducing import dependence—manufacturing rooftop solar inverters within India alone could generate an estimated 50–60 lakh jobs over the next three years. That said, semiconductors form only about 10% of the overall value chain. To achieve meaningful self-reliance, India must also invest in advanced components such as SiC MOSFETs, which are emerging as the ‘semiconductors of the future’ for energy, EV and grid applications. Today, import dependency across these critical technologies remains high. Bridging this gap will be essential if India is to move from being an assembly hub to a global technology leader in clean energy and mobility. Building deep-tech capabilities will require a shift beyond incentive-led approaches towards soft loans and long-term financing, as such technologies demand significant upfront capital and sustained investment.:
Navneet Daga, Co-founder & CEO, Zenergize
“The Union Budget 2026–27 reflects a clear shift towards treating advanced manufacturing and energy storage as long-term national capabilities rather than short-term interventions. Measures such as the extension of basic customs duty exemptions for capital goods used in battery energy storage systems, alongside duty relief for capital goods required for critical minerals processing, directly address structural cost and capability challenges within the storage manufacturing ecosystem.
What stands out is the continuity in approach. Initiatives like India Semiconductor Mission 2.0 and the emphasis on multi-year manufacturing ecosystem development signal policy intent beyond annual cycles. For companies building stationary energy storage technologies in India, this level of consistency is essential to commit capital, deepen material innovation and scale domestic manufacturing with confidence.”
Rishi Srivasatava, Co-founder of Offgrid Energy Labs, Offgrid Energy Labs
‘’We commend Budget 2026’s strong push to scale manufacturing and strengthen energy security which is key to a competitive, future-ready India. Measures such as customs duty exemptions for lithium-ion battery energy storage system capital goods, relief on sodium antimonate for solar glass, and targeted support for carbon capture reflect a holistic approach to the energy value chain and industrial decarbonisation.
The tax holiday for foreign cloud service providers using Indian data centres is equally significant, catalysing investment and growth while driving demand for reliable, affordable, and clean power. SAEL has consistently advocated a vertically integrated solar and energy storage ecosystem to build domestic capability and self-reliance in clean energy.”
Laxit Awla, CEO & Executive Director, SAEL Industries Ltd.
“The Union Budget 2026–27 sends a strong and practical signal for India’s clean energy transition by reinforcing the foundations of the solar and storage ecosystem. Duty exemptions on key inputs like sodium antimonate for solar glass and the inclusion of BESS capital goods under customs duty exemptions help ease upstream costs and strengthen domestic competitiveness – a signal that storage is now recognised as a core power asset, not an add-on.
While direct EPC subsidies were limited, these measures reduce execution risk and improve cost visibility, creating much-needed investment certainty across the value chain. By backing stronger domestic supply chains and integrated solar-plus-storage deployment, the budget advances a resilient, end-to-end energy ecosystem, and positions India to scale sustainably toward its long-term clean power goals.”
Ankit Patel – Founder, Hypotenuse Energy