
India’s 2025 Union Budget marks a transformative moment in the nation’s journey toward clean energy, unveiling a comprehensive vision that blends nuclear power ambitions, manufacturing prowess, and sustainable development. Finance Minister Nirmala Sitharaman’s announcements reveal a carefully crafted strategy to position India as a global clean energy leader while ensuring energy security and environmental sustainability.
At the heart of this transformation lies an ambitious Nuclear Energy Mission, aiming to boost India’s nuclear power capacity from the current 8 GW to a remarkable 100 GW by 2047. This is backed by a substantial `20,000 crore commitment and thoughtful regulatory reforms to the Atomic Energy Act and Civil Liability for Nuclear Damage Act. The mission places special emphasis on Small Modular Reactors. These innovative reactors, generating up to 300 megawatts per unit, represent the future of nuclear technology.
The manufacturing sector emerges as another powerhouse in clean energy strategy. Building on the July 2024 Budget’s customs duty exemptions for 25 critical minerals, the new budget expands this list to include cobalt powder, lithium-ion battery scrap, lead, zinc, and 12 other crucial minerals. This creates a robust ecosystem for manufacturing clean energy components – from solar PV cells and EV batteries to wind turbines.
The electric vehicle sector receives particular attention through strategic customs exemptions for manufacturing equipment. By adding 35 new capital goods for EV battery manufacturing and 28 for mobile phone batteries to the exemption list, the government aims to make electric vehicles more affordable and accessible. This localization of critical components is expected to lower production costs, spur technological innovation, and create high-tech employment opportunities for India’s youth.
Power sector reforms form the third pillar of this clean energy revolution. The budget introduces comprehensive measures to enhance sustainability, efficiency, and financial stability in power distribution. States implementing these reforms receive an attractive incentive – additional borrowing allowance of 0.5% of their Gross State Domestic Product, creating a powerful motivation for modernizing power infrastructure.
The effects of these initiatives extend far beyond the energy sector. The focus on domestic manufacturing strengthens India’s self-reliance while creating new industrial clusters and employment opportunities. The emphasis on clean technology positions India as a potential global leader in renewable energy, while the power sector reforms ensure that the benefits of clean energy reach every corner of the country. This budget creates a solid foundation for energy transition.