The Union Budget 2025 underscores a strong commitment to clean energy and manufacturing as part of India’s vision for sustainable economic growth and energy independence. The government has introduced a series of reforms, incentives, and investments to drive domestic production, boost renewable energy capacity, and attract private-sector participation.
Key Announcements
1. National Manufacturing Mission
- A new National Manufacturing Mission will promote small, medium, and large-scale industries.
- Focus areas include clean tech manufacturing, electronics, and automotive components.
- Provides policy support, execution roadmaps, and a monitoring framework.
2. Expansion of Clean Tech Manufacturing
- To align with India’s climate-friendly development goals, the government will support clean energy technology production.
- Sectors benefiting from incentives include:
- Solar PV cell manufacturing
- EV batteries, motors, and controllers
- Green hydrogen electrolysis technology
- Wind turbine manufacturing
- Ultra-high voltage transmission equipment
- Grid-scale energy storage solutions
3. Small Modular Reactors (SMRs) for Nuclear Energy
- A ₹20,000 crore investment has been allocated for research and development of Small Modular Reactors (SMRs).
- Five indigenously developed SMRs will be operational by 2033.
- These reactors will ensure a stable and clean energy source for India’s future power needs.
4. Expansion of Nuclear Energy Capacity
- India aims to develop 100 GW of nuclear energy by 2047.
- Private sector participation will be encouraged through amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.
5. Exemptions for Lithium-Ion Battery Manufacturing
- Full exemption of Basic Customs Duty (BCD)on:
- 35 capital goods for EV battery production.
- 28 capital goods for mobile phone battery manufacturing.
- This will boost domestic lithium-ion battery production, making India self-reliant in energy storage solutions.
6. Expansion of Urea Production for Agricultural Self-Reliance
- To reduce fertilizer imports, the government will set up a new urea production plant in Assam with an annual capacity of 12.7 lakh metric tons.
- This will ensure agriculture remains supported with locally produced fertilizers.
Impact of These Initiatives
1. Boost to Domestic Clean Tech Industry
- Higher investment in renewable energy infrastructure.
- Growth in local manufacturing capabilities, reducing dependence on imports.
- Encourages technological innovation and sustainability.
2. Strengthening India's Energy Security
- Nuclear energy expansion will provide a stable, carbon-free energy source.
- Grid-scale storage solutions will improve energy reliability.
- Support for electric vehicle (EV) infrastructure will accelerate India’s transition to green mobility.
3. Economic Growth & Job Creation
- Expansion in nuclear, solar, and battery industries will generate new employment opportunities.
- Encouragement of private sector participation will bring new investments and boost industrial competitiveness.
4. Environmental Benefits
- Reduced carbon emissions through increased renewable and nuclear energy adoption.
- Encourages green manufacturing with clean energy technologies.
