As India prepares for its Union Budget 2025, industry leaders across various sectors have expressed their expectations for policies and initiatives that will help drive the country’s sustainable growth, especially in renewable energy. With the ongoing push towards a greener future, stakeholders believe that the budget presents a crucial opportunity for the government to introduce policies that not only boost the renewable energy sector but also address key challenges faced by industries in the energy transition.
In the renewable energy space, Juniper Green Energy’s CEO Naresh Mansukhani highlighted the importance of accelerating India’s renewable energy targets. With India aiming for 500 GW of renewable energy by 2030, Mansukhani emphasized the need to speed up installations to meet the target. He also pointed to the current Goods and Services Tax (GST) rate on renewable energy components, which adds to project costs. He called for a reduction in GST on solar panels and wind turbines, as well as a reduction in customs duties on solar components, to help make clean energy solutions more affordable. He also suggested that the budget should promote energy storage technologies like batteries, address grid stability issues, and allocate funds for advanced renewable energy research, including green hydrogen and offshore wind power.
Dushyant Chachra, CFO of SAEL, is optimistic that the upcoming Union Budget will bring forward policies that accelerate India’s green transition. He specifically pointed out the importance of increasing investments in the renewable energy sector, especially for solar and battery storage solutions, which will contribute to India’s energy transition. He suggested that India could become a global leader in sustainable energy if the budget encourages policies that support the growth of the sector.
N.P. Ramesh, COO and Co-Founder of Orb Energy has called for the restoration of 100% accelerated depreciation for solar investments. He believes that this will help businesses recover their costs faster and promote solar adoption, especially in the commercial and residential sectors. He also recommended replacing the existing subsidy system for residential solar installations with income tax incentives, which would make solar energy more accessible and simplify the subsidy process.
Udit Garg, Managing Director & CEO of Kundan Green Energy, believes the budget should focus on providing a supportive tax policy for renewable energy companies. Lowering corporate tax rates for companies in the renewable energy sector, incentivizing green hydrogen production, and reducing GST rates on solar and wind components would boost investments and innovation. Garg also emphasized the importance of creating financial instruments to manage electricity price volatility and supporting the growth of India’s corporate bond market to fund renewable energy projects.
Rajesh Ganesh, Managing Director & CEO of Bajel Projects Limited, has outlined his expectations for an increased allocation toward infrastructure in the upcoming budget. He noted that the previous Union Budget set the infrastructure capex target at a historic ₹11.1 lakh crores, and with India’s aim to become a developed nation by 2047, he anticipates even greater investments. According to him, key issues in the power sector, such as Right-of-Way (ROW) and land acquisition, need to be addressed with measures like digital land banks and time-bound clearances. Additionally, to help lower project costs, a reduction in import duties on essential equipment like transformers and circuit breakers is expected. Ganesh also emphasized the need for more financial support for distribution companies (Discoms), suggesting that the Revamped Distribution Sector Scheme (RDSS) should be further augmented.
Similarly, Sanchit Sekhwal Goyal, Director of Su-Kam Power Systems Limited, expressed his hope for the budget to include incentives for renewable energy adoption, particularly subsidies for solar energy. He also called for greater allocation of funds to research and development in energy storage solutions, which would play a critical role in managing renewable energy production. Goyal also hopes that the budget will include incentives to boost India’s energy independence.
Dr. Miniya Chatterji, CEO of Sustain Labs Paris, outlined how the Union Budget 2025 could serve as a major opportunity to push for sustainable growth across industries. She emphasized the need for incentives to expand renewable energy capacity, including green hydrogen initiatives, and increased support for climate-resilient agriculture and water management. She also stressed the importance of climate education, noting that for other climate-related initiatives to succeed, India must focus on educating the future workforce on sustainability. Chatterji hopes the budget will also support small and medium enterprises (SMEs) that are working towards meeting global sustainability standards.
Atul Mudaliar, Director of Systems Change at Climate Group India, echoed the need for a focus on green cement in the infrastructure development plans. He highlighted the projected ₹1.25 trillion capital expenditure in the infrastructure sector by fiscal year 2026-27, noting that integrating green cement and concrete into the Pradhan Mantri Gati Shakti master plan could contribute significantly to India’s sustainability goals.
The pre-budget expectations reflect a consensus among industry leaders that India’s renewable energy sector needs significant support to achieve its ambitious targets. From reducing taxes and import duties to promoting research and development, these expectations focus on making renewable energy more affordable and accessible. Additionally, strengthening domestic manufacturing, particularly in solar components, is seen as key to reducing dependence on imports and fostering self-reliance.
The government has an opportunity to not only support India’s green energy transition but also address the financial and logistical challenges that have hindered progress. By offering fiscal support, streamlining procedures, and promoting innovation, the Union Budget 2025 could provide the necessary push for India to solidify its position as a global leader in renewable energy.
As India prepares for the Union Budget 2025, the renewable energy sector’s hopes for supportive policies are high. These initiatives could drive India’s energy transition, create economic opportunities, and contribute to the nation’s sustainability goals. With the right policies in place, India can move closer to its target of 500 GW of renewable energy by 2030, while positioning itself as a global exporter of green technologies. The budget presents a unique opportunity to accelerate India’s journey toward a cleaner, greener future.
