Budget 2025-26: Clean Tech & Manufacturing Push With Tax Breaks, EV, Solar Boost

The Union Budget 2025-26 marks a pivotal moment for India’s clean technology and manufacturing sectors, introducing key initiatives to drive domestic production, sustainability, and innovation. The launch of the National Manufacturing Mission and the Clean Tech Mission under Make in India aims to accelerate the country’s shift toward self-reliance in EV batteries, solar panels, and other green technologies. Policy measures, including exemptions on critical mineral imports and frameworks for responsible waste management, will strengthen supply chains and boost India’s circular economy. Industry leaders weigh in on how these developments will impact manufacturing, resource recovery, and economic growth.

"The government has introduced multiple phenomenal fiscal measures to strengthen the clean technology ecosystem in India. The launching of the National Manufacturing Mission and the Clean Tech Mission, under the Make in India initiative, shall fast-track the production of EV batteries, solar panels, and other sustainable solutions within the country. This will curb import dependency, enable India to become more competitive in the global market, induce innovation, channel investments and create jobs while nurturing net-zero aspiration in the country. The proposal to fully exempt Basic Customs Duty (BCD) on cobalt powder and lithium-ion battery waste and other critical minerals is, rather crucially, one step toward securing raw materials for domestic production and creating a self-reliant supply chain,” says Nitin Gupta, CEO & Co-founder of Attero.

Additionally, the planned policy on recovering critical minerals from tailings will significantly benefit refining players like Attero. As India's only high-tech, end-to-end e-waste and lithium-ion battery recycler, Attero leverages its proprietary, globally patented technologies to extract over 18 critical metals in pure form, ensuring these materials are efficiently recovered and reintegrated into the manufacturing process.

“These measures will directly enhance Attero's resource recovery capabilities, drive sustainability, and support India's transition to a circular economy. Furthermore, the government's focus on strengthening the domestic electronics industry and developing a national framework for Global Capability Centers (GCCs) in Tier-2 cities will unlock new opportunities for skilled professionals, infrastructure development, and industry collaboration, further boosting demand for responsible e-waste management and recycling solutions,” Gupta added.

Nimit Aggarwal, Founder & Managing Director of EcoEx, also highlights the broader impact of these initiatives: “The introduction of the National Manufacturing Mission and the Clean Tech Mission in the Union Budget 2025-26 will boost domestic production of green technologies while fostering an enabling environment for responsible waste management and recycling. In the coming years, as clean tech manufacturing will scale greater heights, the need for an effective EPR framework along with the efficient recycling of wastes will take on a greater significance. The announcement of a Deep Tech Fund of Funds to support next-generation startups will be a good move since it will support innovation in sustainable technologies, including advanced recycling solutions and circular economy initiatives. AI will be needed to prepare the waste collection, segregation, and processing for easier navigation into India's complex waste ecosystem and to enhance the country's green transition.”

Smitha Shetty, Regional Director APAC at Achilles Information, emphasises the budget’s role in strengthening India’s global trade position: “Investments in clean technology manufacturing—solar, EV batteries, and wind turbines—mirror global sustainability trends, strengthening supply chains. Maritime and shipping sector incentives will enhance trade competitiveness. However, robust supply chain due diligence and ESG compliance are vital to mitigate risks. While this budget lays a strong foundation, its execution will determine India's success in becoming a self-reliant, globally competitive manufacturing powerhouse.”

Manish Dabkara, Chairman and Managing Director of EKI Energy Services and President of the Carbon Markets Association of India, also supports the budget, stating, "The budget announcements mark a progressive step toward India's decarbonisation goals, creating opportunities for industries working in decarbonization, sustainability services, and the broader climate economy. The Make in India National Manufacturing Mission will accelerate clean tech manufacturing, enhancing domestic capabilities in solar PV cells, EV batteries, electrolysers, and wind turbines, all of which are critical to a net-zero future."

He further highlighted that the Nuclear Energy Mission, with a ?20,000 crore investment in Small Modular Reactors (SMRs), will support clean baseload power, further reducing dependence on fossil fuels. The government's commitment to amending laws to enable private sector participation in nuclear energy opens up new investment channels for clean energy projects. Policies promoting a circular economy, such as financial incentives for shipbuilding and ship recycling, align with global sustainability goals.

By announcing the Clean Tech Mission under Make in India, the government has demonstrated its commitment to green technology to achieve Net-Zero by 2070. Supporting this vision, Abhishek Agashe, Co-founder & CEO of Elima, states, "As India strives for a Viksit Bharat by 2047, particularly in the fields of recycling and clean technology, the Union Budget 2025 marks a critical turning point. Given that India generates over 3.2 million metric tonnes of e-waste annually—a figure projected to rise by 73% between 2019 and 2023—enhancing our recycling infrastructure is essential for building a sustainable, circular economy.

A significant step forward has been taken with the reduction of basic customs duties, including a 0% duty on imports of non-ferrous scrap (such as lead, zinc, copper, brass, and lithium-ion battery scrap). This move will ensure a stable supply of raw materials for domestic processing and production, greatly strengthening India’s recycling ecosystem and directly supporting the Make in India initiative.

Agashe adds, "India's transition to a sustainable future relies heavily on its focus on clean technology production. The budget promotes innovation and enhances domestic value addition by supporting the local manufacturing of solar PV cells, EV batteries, and energy storage devices. At Elima, we believe this will empower the next generation of green enterprises, drive the growth of clean technologies, and establish the foundation for a robust recycling ecosystem. With this budget, India is reaffirming its commitment to climate-friendly development and paving the way for a cleaner, greener, and more self-reliant economy."

Anu Chaudhary, Partner and Global Head of ESG Consulting at Uniqus Consultech, adds, "The Union Budget 2025-26 decisively prioritizes clean tech manufacturing, underscoring India's unwavering commitment to climate-friendly development. By fortifying domestic value addition in critical technologies—solar PV cells, EV batteries, wind turbines, and grid-scale storage—the budget propels us forward on the path to carbon neutrality. This strategic focus aligns with the Atmanirbhar Bharat vision, ensuring that India establishes a robust manufacturing ecosystem at scale, significantly reducing reliance on imports while firmly positioning itself as a global leader in renewable energy innovation."