Budget 2025: India’s Focus on Clean Energy Technology
Published · 2 min read
The government of India is ramping up efforts to boost clean technology as part of its energy strategy. With a keen focus on enhancing domestic capabilities, the initiative supports sectors like solar power, electric vehicle (EV) technology, and advanced energy storage solutions. This move is in response to growing electricity demands and challenges in global supply chains.
Commitment to Green Energy and Infrastructure
In the fiscal year 2023-2024, under its G20 Presidency, India emphasized its role as a burgeoning leader in the transition to sustainable energy. The government has pinpointed infrastructure enhancement, particularly in green energy, as a critical area of focus.
India has set ambitious goals to achieve net-zero carbon emissions by 2070. Interim targets for 2030 include obtaining half of the country’s energy from non-fossil sources and reducing the emission intensity of its GDP by 45% from 2005 levels.
Enhancing Energy Storage Capacity
Stable and continuous power supply is essential for industrial growth and everyday life. Energy Storage Systems (ESS) are crucial for managing energy supply, especially from intermittent renewable sources like solar and wind. The Central Electricity Authority projects significant increases in storage needs:
- 2026-27: 82.37 GWh
- 2031-32: 411.4 GWh
The Rise of Green Hydrogen
Green hydrogen is emerging as a key component of India’s clean energy strategy. The National Green Hydrogen Mission has earmarked significant funds to promote this sector:
| Year | Funding (INR crore) |
| Up to 2029-2030 | 17,490 |
| Up to 2025-26 | 400 (for hubs and projects) |
This funding aims to build infrastructure for producing and distributing green hydrogen, starting with the development of at least two major hubs.
Key Policy Measures for 2025
The upcoming budget presents a prime opportunity for targeted policy measures to foster investment in green technologies. Some suggested policy initiatives include:
- Updating the Harmonized Master List: Incorporating Green Hydrogen Production into the list would increase foreign investments through the Foreign Venture Capital Investor (FVCI) route, making this sector more attractive due to its regulatory benefits.
- Financing Benefits: Inclusion in the list also makes projects eligible for better financing terms, helping to attract more substantial funds and improve investment feasibility.
- Tax Incentives: The government could extend beneficial tax rates under Section 115BAB to renewable energy projects, including energy storage systems. This change would promote investment in new technologies needed for India’s energy future.
These steps are crucial for India to meet its environmental goals and become a leader in the global clean energy market. The 2025 budget is not just about funding; it’s a strategic plan to ensure India’s growth is sustainable and its energy future is secure.
