Budget Marks Watershed Moment for India's Clean Energy Transition, Say Experts

India's Budget 2025 Aims to Increase Clean Energy, EVs, Critical Minerals
Union Finance Minister Nirmala Sitharaman presented the Budget 2025 on Saturday with a new ₹20,000 crore nuclear mission to give vital duty exemptions to get clean energy and electric vehicles going and initiate sourcing of critical minerals. All important measures are being initiated in driving domestic manufacturing, advocating renewable energy, and bolstering energy security.
Important Highlights
Nuclear Energy Investment
For the amount of ₹20,000 crore this nuclear mission has some changes in Atomic Energy Act and Civil Liability for Nuclear Damage Act for private sector participation in it. It is expected that it will eventually lead to some research and development in nuclear power so that the energy security of India is increased.
Duty Exemptions for EVs and Clean Energy

Exemptions have also been provided on import duty for lithium-ion battery waste, cobalt powder, and other essential mineral wastes that will be useful for the development of local EV and battery production. Import of 63 more capital goods in the assembly of the domestic EV and mobile battery would be exempted from import duty.

Boosting Renewable Energy Infrastructure

The budget also emphasizes the requirement for investment, which has been taken care of with off-shore winds, green hydrogen, and hybrid renewable energy projects. Such schemes will develop innovation, job opportunities, and higher economic activities for the sector.
National Manufacturing Mission

It aims at domestic manufacture of pollution-free technologies: photovoltaic solar cells, wind turbines, high-voltage transmission equipment etc. In these, "Make in India" will give fillip to indigenization replacing imports.
Reforms in the Power Sector

This also came with incentives that encourage states to modernize their distribution and transmission infrastructure of power in a way that renewable sources get integrated into the grid. Besides, the PPP model came in to support increasing investments into the renewable energy sector.
Investment in Critical Minerals

Access will, therefore, be focused on some of these key minerals such as lithium and cobalt used in batteries that power electric vehicles, clean energy, and other emerging technologies. Greater exploration, mining, and processing of the respective minerals are contemplated to enhance our independence away from imports. Infrastructure and Clean Tech Startups

It aims at 10% increase in capital expenditure on infrastructure. The government reiterated its commitment to developing world-class infrastructure. Most recently, it planned the start-ups and MSMEs related to clean technology. Scaling up manufacturing of solar cells

It supports domestic solar cell manufacturing, as Production-Linked Incentive nudges this push. This is in line with India's objective to produce 500 GW of renewable energy by 2030.
Electricity distribution and EV battery production

The government has increased the number of 35 capital goods items for duty exemption to be used in promoting domestic production of lithium-ion batteries, which is critical to the rise of EVs. It also focuses on enhancement of the capacity of the transmission network for renewable energy and for the propagation of EVs.

Impact on the Clean Energy Sector of India

According to industry experts, the measures taken in Budget 2025 are very well apt for the entire renewable energy and EV ecosystem in India. Manufacturing incentives, critical minerals, and reforms in the power sector are going to form a firm foundation for transitioning to energy and sustainable development.