Introduction India’s journey toward a net-zero future by 2070 demands bold policies, massive investments, and clear intent. The Union Budget 2025–26 delivers on that promise with a major push towards renewable energy, green hydrogen, electric mobility, and sustainable infrastructure. With an allocation of ₹1.29 lakh crore for green energy and climate action, this is India’s greenest budget yet.
This article breaks down key announcements, tracks budgetary trends over five years, and uncovers the economic opportunities in India’s green transition.
Key Budget Allocations and Announcements
- Green Energy Budget
- 2024–25 (RE): ₹1.09 lakh crore
- 2025–26 (BE): ₹1.29 lakh crore
- Growth: ₹20,000 crore (~18.3%)
- National Green Hydrogen Mission
- ₹19,500 crore allocated to scale electrolyzer manufacturing and pilot hydrogen valleys
- Goal: Produce 5 MMT of green hydrogen annually by 2030
- Solar and Wind Power Expansion
- ₹36,000 crore for PM Surya Ghar Yojana (rooftop solar for 1 crore homes)
- 25 GW new solar parks; repowering of wind farms in Gujarat, Tamil Nadu
- EV and Battery Ecosystem
- ₹24,000 crore in incentives under FAME III for EV adoption
- Battery storage capacity target: 50 GWh by 2028
- Green Credit Program
- ₹7000 crore for incentivizing afforestation, clean water bodies, and community solar
Five-Year Budget Comparison: Green Energy and Environment
| Year | Green Budget Outlay | YoY Growth | Focus Areas |
| 2021–22 | ₸75,000 crore | — | Solar parks, EV subsidies |
| 2022–23 | ₸91,000 crore | +21.3% | National Hydrogen Mission launched |
| 2023–24 | ₹1.01 lakh crore | +11% | Offshore wind, Li-ion R&D |
| 2024–25 | ₹1.09 lakh crore | +7.9% | Green bonds, urban climate resilience |
| 2025–26 | ₹1.29 lakh crore | +18.3% | Hydrogen scale-up, rural solar, EVs |
Cumulative Growth (5 years): ~72% increase
Why This Budget Is a Game Changer
- Green Hydrogen Focus: India joins global leaders with serious hydrogen investment and export ambitions.
- Decentralized Solar Power: Rooftop solar empowers households to save up to ₹2,000/year in energy bills.
- EV Push in Public Transport: States to get incentives for converting 30% of city bus fleets to EVs.
Real-World Example: ReNew Power’s Green Hydrogen Pilot
ReNew Power has set up a pilot 20 MW green hydrogen facility in Rajasthan, supported by earlier subsidies. With this budget’s funding, it plans to scale production to 200 MW, creating 500+ skilled jobs and attracting FDI partnerships with Japan and Germany.
Challenges and Areas to Watch
- Grid Modernization: Renewable integration needs smart grids and storage.
- Land Conflicts: Large-scale solar/wind projects face opposition in tribal/rural areas.
- Technology Dependence: Need to reduce import dependence on Chinese solar modules and Li-ion cells.
Opportunities for Stakeholders
- Startups: Energy analytics, battery tech, hydrogen logistics
- Households: Subsidized rooftop solar under PM Surya Ghar Yojana
- MSMEs: Green loans for energy-efficient operations and cleaner transport
Conclusion: Powering Progress, Sustainably
The 2025–26 budget makes it clear — India’s energy growth will not come at the cost of its environment. With strong financial backing, regulatory support, and vision, the country is moving from pilot projects to planet-scale solutions.
As Environment Minister Bhupender Yadav noted, “This budget is not just for energy — it is for our ecological and economic security.”
Green energy is no longer a choice. It’s our competitive advantage, and Budget 2025–26 just plugged it into high gear.
