New Delhi, Feb 01 : In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman announced a significant boost for the solar energy sector, allocating ₹20,000 crore to the PM Surya Ghar Muft Bijli Yojana, marking an 80% increase from the previous year’s ₹11,100 crore.
The government also introduced a Manufacturing Mission to enhance domestic production of clean technologies. This initiative aims to bolster the manufacturing ecosystem for solar photovoltaic (PV) cells, electric vehicle (EV) batteries, motors, controllers, electrolyzers, wind turbines, high-voltage transmission equipment, and grid-scale batteries.
These measures align with India’s target of achieving 500 GW of non-fossil fuel power by 2030, up from the current 209 GW. The Economic Survey FY25 highlighted the nation’s dependence on China for renewable manufacturing materials, underscoring the importance of strengthening domestic capabilities.
Sanjay Kumar ED, Manjari Foundation, noted that the budget focuses on making domestic manufacturing and exports competitive, which would create new jobs, drive economic growth, and facilitate a stable energy transition also highlighted the government’s commitment to meeting rising energy demands while adhering to climate goals.
To further support local production, the government has removed basic customs duties on critical minerals such as cobalt powder, lithium-ion battery scrap, lead, and zinc. This measure is expected to lower input costs, secure raw material supply chains, and promote job creation in the renewable energy sector.
