BUDGET 2026: India's Renewable Energy Sector Leaders Respond To Budget

Union Finance Minister Nirmala Sitharaman today presented the Union Budget 2026 before the Parliament. Several leaders from the Indian renewable sector have responded to the provisions made by the government. This comes at a time when the government announced a hand-holding support for solar manufacturing, a boost to the BESS projects, special emphasis on critical minerals and rare earth matters. The government has also increased allocation for solar projects in the country. 

Following are some of the key responses from the industry leaders. 

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"Built like a roadmap designed for both sharp turns and long highways, the Union Budget 2026 delivers clarity and confidence in a world defined by rapid shifts and long‑term challenges. It balances the immediate need for employment generation among the youth with disciplined fiscal consolidation, ensuring stability without slowing momentum. By lowering or removing import duties on essential inputs and machinery, the Budget makes it cheaper and easier for India to build domestic manufacturing for strategic and export‑oriented products like batteries, semiconductor chips, garments, and apparels. Its focus on critical minerals, carbon capture and utilization, and next‑generation nuclear technologies marks a decisive push into the energy‑transition future. Together, these measures signal a clear intent to build a resilient, competitive, and opportunity‑ready economy poised to lead in next‑generation clean‑energy sectors."

Sumant Sinha, Founder, Chairman & CEO, ReNew

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“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 

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“I would like to congratulate the Hon’ble Finance Minister for rolling out a pragmatic yet visionary Union Budget, aimed at building a developed and self-reliant India. It sets a roadmap for inclusive, sustainable and accelerated economic growth, with a clear focus on robust infrastructure and connectivity, domestic manufacturing excellence, balanced regional growth and creation of a future-ready workforce. The government’s reform agenda marks a decisive shift from improving the ‘ease of doing business’ to accelerating ‘the speed of doing business’, through simplified regulations and technology-enabled approvals. Targeted customs duty exemptions for lithium-ion cells, battery energy storage systems and key clean-energy manufacturing inputs will help scale domestic capacity and improve project viability."

Rahul Munjal, Chairman and Managing Director of Hero Future Energies

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“Disciplined Swadeshi, as articulated in the Economic Survey and carried decisively into Union Budget 2026, is not about inward-looking protectionism but about building domestic capabilities that are globally competitive, efficient, and resilient. As the Survey underscores that import substitution needs to be strategic and disciplined, not a blanket rule, the Budget reflects this philosophy through calibrated incentives, duty rationalisation, and focused capital allocation. This approach is most evident in renewable energy, where the Budget has extended customs-duty exemptions on critical inputs such as sodium antimonate used in solar glass and lithium-ion components for battery energy storage systems, alongside support for carbon-capture technologies. By reducing input costs while encouraging domestic manufacturing, the Budget enables India’s clean-energy transition to be indigenously powered, globally competitive, and aligned with long-term energy security. This will help strengthen India’s industrial base while staying integrated with global trade, technology, and value chains, and ensuring that self-reliance is anchored in productivity rather than protectionism.”

Shashank Sharma, Founder - Chairman & CEO, Sunsure Energy

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“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

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“By locking in long-term domestic demand through a record ₹12.21 lakh crore capital expenditure outlay and a nearly 29% increase for the PM Surya Ghar Muft Bijli Yojana, the government has created much-needed visibility for large-scale investments across the solar value chain. The extension of customs duty exemptions for lithium-ion cell manufacturing to battery energy storage systems directly strengthens both energy transition and energy security, while the exemption on critical inputs such as sodium antimonate for solar glass will improve cost competitiveness and accelerate domestic capacity creation in a strategically vital segment."

Prashant Mathur, CEO, Saatvik Green Energy

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“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

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"This is a forward-looking budget with an eye on improving long-term energy security and domesticmanufacturing industry competitiveness across different parts of the energy sector. Specifically for solar, the big increase in funds allocation for PM-Surya Ghar and KUSUM schemes to Rs. 27,000 crores would be a major help for domestic manufacturers. The government has listened to the industry and announced a provision to develop hi-tech tooling capability for precision equipment and capital goods, which will help to reduce reliance on other countries. Import duty waivers on equipment used for battery storage manufacturing and critical mineral processing are expected to reduce cost of domestically manufactured products. Other significant measures include substantial financial support for developing new technologies like carbon capture and nuclear energy."

Vinay Rustagi, CBO, Premier Energies

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“The Finance Minister has taken a balanced approach to growth amid a challenging global environment through comprehensive reforms in Taxation, the Power Sector, Urban Development, Mining, the Financial Sector, and Regulatory frameworks. A particularly impactful measure is the extension of Basic Customs Duty (BCD) exemption to capital goods used in manufacturing Lithium-Ion Cells for battery energy storage systems. This policy will create a multiplier effect, accelerating the adoption of clean energy solutions across India's manufacturing sector.”

Manan Thakkar,  Co-Founder & Managing Director,  Prozeal Green Energy Limited

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“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

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"This budget clearly places India on the international map as a serious long-term player in the global clean energy and manufacturing chain. The focus on capital expenditure, domestic manufacturing, critical minerals, and energy security indicates a clear shift from capacity building to global competitiveness. From a corporate perspective, the policy consistency of infrastructure-driven growth and sustainable energy is a strong message to global investors and MNCs seeking stable, scalable, and technology-driven markets. With the diversification of global supply chains and the acceleration of energy transition globally, India is poised not only as a consumption market but also as a solutions destination for renewable energy, green manufacturing, and integrated EPC solutions.
For corporations operating at the nexus of clean energy and infrastructure, this budget has further reinforced confidence in India’s ability to deliver large-scale, export-quality, and future-ready energy solutions."

Bikesh Ogra, Vice Chairman and Global CEO of Jakson Green Limited

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“The Union Budget 2026–27, presented by the Hon’ble Finance Minister Smt. Nirmala Sitharaman on 1 February 2026, marks a decisive step in strengthening India’s renewable energy ecosystem and domestic clean-tech manufacturing. Notably, the exemption of basic customs duty on sodium antimonate used in the manufacture of solar glass will materially reduce input costs for solar manufacturers and enhance the competitiveness of India’s solar value chain. In addition, the extension of basic customs duty exemptions on capital goods used for manufacturing lithium-ion cells to include Battery Energy Storage Systems (BESS) is a timely and strategic move."

Karthik Raju, Executive Director, Atria Renewable  Pvt Ltd

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“The Union Budget 2026 reflects a balanced and forward‑looking approach to strengthening India’s energy ecosystem, with a clear focus on reliability, sustainability and long‑term system resilience.
Policy support for battery energy storage directly addresses priority requirements of grid reliability and renewable integration. The extension of customs duty exemptions on capital goods used for lithium‑ion cells to include battery energy storage systems (BESS), along with duty relief on key inputs such as sodium antimonate for solar glass, will help improve cost structures and support the scale‑up of grid‑level storage infrastructure that is essential for a flexible power system."

— Rajiv Ranjan Mishra, Managing Director, Apraava Energy

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“The Union Budget 2026–27 reaffirms the government’s commitment to clean energy, power reliability and last-mile infrastructure. Continued focus on renewable energy, energy transition and infrastructure financing creates a favourable environment for decentralised and hybrid power solutions, particularly in underserved and high-growth regions. The emphasis on sustainable growth, MSME support and infrastructure-led development opens up significant opportunities for reliable power deployment across telecom, rural enterprises and emerging industrial clusters. This Budget strengthens the foundation for scalable, resilient and low-carbon power systems that are essential for inclusive economic growth.”

Rohit Chandra, Co-Founder & CEO, OMC Power

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“The Union Budget reinforces policy continuity for India’s energy transition by strongly backing domestic manufacturing, clean mobility, and decentralized renewable energy adoption with storage. With India expected to account for nearly 30% of global energy demand growth by 2035, the Budget’s emphasis on renewable capacity expansion, grid integration, and reliable power delivery is both timely and strategically aligned with the country’s long-term clean energy ambitions.  The exemption of basic customs duty on select capital goods, along with the addition of 35 capital goods for EV battery manufacturing, will provide a meaningful boost to domestic battery manufacturing and energy storage capabilities. In parallel, the ₹40,000-crore push for electronics manufacturing across key components such as printed circuit boards, capacitors, resistors and display modules will strengthen India’s electronics and advanced manufacturing ecosystem."

Shekhar Singal, Managing Director, Eastman Auto & Power Limited

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"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, Managing Director of Oswal Pumps

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"Union Budget 2026-27 outlines a clear growth-oriented roadmap with public capital expenditure increased to ₹12.2 lakh crore, reflecting the government’s continued focus on energy and infrastructure-led development. The introduction of the Infrastructure Risk Guarantee Fund, along with greater use of REITs and asset monetisation mechanisms, is expected to enhance investor confidence and support more efficient project execution. The emphasis on domestic manufacturing, energy security, and future-oriented technologies, including the allocation of ₹20,000 crore for carbon capture, contributes to strengthening India’s long-term economic resilience. Commitments towards freight corridors, inland waterways, high-speed rail corridors, and City Economic Regions indicate a structured approach to improving transport, logistics, urban infrastructure, and industrial connectivity. With focused attention on capacity building, employment generation, and the development of Tier II and Tier III cities, the Budget supports broad-based and inclusive growth.”

 Sameer Gupta, Chairman of Jakson Group

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“Union Budget 2026 signals a strong strategic thrust towards technology-led growth and sustainable energy transformation. The launch of India Semiconductor Mission 2.0 with significant support for industry-led R&D and manufacturing is a landmark step in advancing India’s semiconductor ecosystem and strengthening our global competitiveness. At the same time, the renewed focus on solar and renewable energy value chains in the broader budget framework underscores the government’s commitment to achieving clean energy goals and enhancing energy security while reflecting the industry’s call for deeper support across solar infrastructure, grid readiness, storage, and domestic manufacturing."

Pawan Kumar Garg, Chairman & Joint Managing Director, Fujiyama Power Systems Ltd

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“The strong push on infrastructure and record capital expenditure will significantly improve ease of doing business, strengthening grid readiness and accelerating renewable energy deployment. Targeted support for MSMEs through a dedicated growth fund will deepen participation across the clean energy value chain, from manufacturing to services. The focus on rare earth corridors and advanced manufacturing is particularly critical, as it secures essential minerals for battery storage and power electronics. As data centres emerge as a key driver of India’s digital and manufacturing economy, the need for reliable, round-the-clock clean power will only intensify. In this context, customs duty exemptions for battery storage and solar manufacturing inputs will play a vital role in scaling firm renewable energy solutions that support both energy security and sustained economic growth .”  

Siddharth Bhatia, Managing Director, Oyster Renewables & AB Energia

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"Budget 2026 is directional and in spirit hits the right chords - clearly India will be the growth engine of the world for decades to come. It lays out a clear pathway for Viksit Bharat's global leadership by linking climate resilience with economic growth across the real economy and the financial system. Commitments of allocations for municipal bodies, targeted support for MSMEs, manufacturing, and skills, and measures to deepen corporate bond markets to help de-risk the transition to unlock necessary capital flows. The emphasis on clean energy, agriculture, and climate-ready infrastructure strengthens productivity, inclusion, and long-term investor confidence as India advances toward 2047."

Vivek Sen, India Ditector, Climate Policy Initiative (CPI)

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“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."

Rishi Srivasatava, Co-founder of Offgrid Energy Labs

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“Budget 2026 again seeks to reinforce the NBFC sector. In particular, the expanded MSME framework, including over ₹7 lakh crore in liquidity support through a mandatory TReDS regime for CPSE procurement, credit guarantees for invoice discounting via CGTMSE, and the creation of a secondary market for trade receivables, will materially improve cash flows and de-risk lending. We also welcome the extension of customs duty exemptions on capital goods for battery energy storage systems and key inputs such as sodium antimonate for solar glass manufacturing, which will support clean energy deployment and domestic manufacturing competitiveness."

Govind Sankaranarayanan, Co-founder & COO, Ecofy

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"The Union Budget marks a positive transition in the way India thinks about development, acknowledging that climate action, economic growth, and the resilience of our cities have a direct bearing on the lives of our citizens. The focus on sustainable infrastructure, clean energy, and climate-resilient urban transitions, coupled with a robust public capital expenditure outlay of ₹12.2 lakh crore and specific allocations for cleaner industrial transitions, is a clear indication that the government is committed to developing cities that are healthier, safer, and more livable for our citizens."

Shishir Joshi, Founder and CEO, Project Mumbai and Mumbai Climate Week 

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"The Union Budget 2026–27 sends a clear signal that India is serious about building long-term energy security on the back of renewables, storage and critical mineral value chains. The decision to extend basic customs duty exemptions on capital goods for lithium-ion cells to battery energy storage systems, and to waive duty on inputs like sodium antimonate for solar glass, will lower project costs across the solar-plus-storage stack and accelerate grid-scale as well as C&I deployments."

Anand Jain, Founder, Aerem Solutions 

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"The Union Budget 2026 marks a pivotal moment for India’s renewable energy landscape, particularly the solar sector. By reducing duties on solar panels and related components, the government aims to lower costs and accelerate solar adoption across industries and households, reinforcing the ‘Make in India’ vision. Customs duty exemptions for critical inputs such as sodium antimonate used in PV glass and capital goods for lithium-ion batteries will enhance the competitiveness of domestic manufacturing and attract greater investment across the solar value chain. Together, these measures are expected to improve affordability, strengthen supply chains, and fast-track India’s transition to clean energy—supporting long-term sustainability goals while empowering solar entrepreneurs and consumers alike." 

Akshat Jain, CEO, KLK Ventures

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“We welcome the Union Budget 2026 as a pragmatic and forward-looking fiscal blueprint for India’s energy transition. The allocation of ₹1,775 crore to the solar power (grid) segment underscores the government’s continued commitment to expanding clean energy capacity, while full exemption from Basic Customs Duty on energy transition equipment and solar glass inputs will significantly reduce costs and strengthen the competitiveness of solar manufacturing and deployment."

Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd

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