Going into this year’s Budget, the energy and renewable sector was looking for stronger 𝗱𝗶𝗿𝗲𝗰𝘁 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗮𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻𝘀 toward grid modernisation, transmission infrastructure, battery energy storage deployment, green hydrogen incentives, and long-term financing clarity. Industry also anticipated sharper fiscal support for domestic solar manufacturing and strategic moves to secure rare/critical mineral supply chains.

𝗪𝗵𝗮𝘁 𝗲𝗺𝗲𝗿𝗴𝗲𝗱 was a more calibrated, policy-led approach rather than large headline spending. Key “hits” include 𝗰𝘂𝘀𝘁𝗼𝗺𝘀 𝗱𝘂𝘁𝘆 𝗰𝘂𝘁𝘀 𝗳𝗼𝗿 𝗹𝗶𝘁𝗵𝗶𝘂𝗺-𝗶𝗼𝗻 𝗮𝗻𝗱 𝗕𝗘𝗦𝗦 𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴, relief on 𝘀𝗼𝗹𝗮𝗿 𝗴𝗹𝗮𝘀𝘀 𝗶𝗻𝗽𝘂𝘁𝘀, 𝗱𝘂𝘁𝘆 𝗲𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗰𝗿𝗶𝘁𝗶𝗰𝗮𝗹 𝗺𝗶𝗻𝗲𝗿𝗮𝗹 𝗽𝗿𝗼𝗰𝗲𝘀𝘀𝗶𝗻𝗴, continued support for nuclear energy, excise relief on 𝗯𝗶𝗼𝗴𝗮𝘀-𝗯𝗹𝗲𝗻𝗱𝗲𝗱 𝗖𝗡𝗚, and a notable ₹𝟮𝟬,𝟬𝟬𝟬 𝗰𝗿𝗼𝗿𝗲 𝗼𝘂𝘁𝗹𝗮𝘆 𝗼𝘃𝗲𝗿 𝗳𝗶𝘃𝗲 𝘆𝗲𝗮𝗿𝘀 𝗳𝗼𝗿 𝗖𝗖𝗨𝗦.

The “miss” from an industry lens, is the limited direct allocation towards grid and transmission expansion.

𝗢𝘃𝗲𝗿𝗮𝗹𝗹: The Budget signals a shift toward 𝗺𝗮𝗻𝘂𝗳𝗮𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗹𝗼𝗰𝗮𝗹𝗶𝘀𝗮𝘁𝗶𝗼𝗻, 𝘀𝘁𝗼𝗿𝗮𝗴𝗲, 𝗮𝗻𝗱 𝗺𝗶𝗻𝗲𝗿𝗮𝗹 𝘀𝗲𝗰𝘂𝗿𝗶𝘁𝘆 𝘄𝗶𝘁𝗵 𝘁𝗮𝗿𝗴𝗲𝘁𝗲𝗱 𝗹𝗼𝘄-𝗰𝗮𝗿𝗯𝗼𝗻 𝗳𝘂𝗻𝗱𝗶𝗻𝗴, rather than broad infrastructure capex or new capacity targets.