Industry Bodies Praise Budget 2025’s Push for Clean Tech and Green Transition in India

Finance Minister Nirmala Sitharaman announced the "National Manufacturing Mission" to support clean technology (cleantech), furthering India’s “Make in India” ambition during her record eighth consecutive budget presentation in the Parliament on February 1.  

FM Sitharaman shared that the government aims to set up a National Manufacturing covering small, medium and large industries to advance “Make in India” by providing policy support, execution roadmaps and governance framework for central ministries and states.  

“Given our commitment to climate-friendly development, the mission will also support clean tech manufacturing. It aims to improve domestic value addition and build our ecosystem for solar PV cells, electric vehicle (EV) batteries, motors and controllers, electrolysers, wind turbines, very high voltage transmission equipment and grid scale batteries,” FM Sitharaman shared while presenting the Union Budget 2025-26.

The government already provides production-linked incentives (PLI) for sectors like solar modules, electrolysers and EV batteries, with a 10 GW incentive for grid-scale batteries expected soon.

According to official data by Ministry of New and Renewable Energy, India aims to achieve 500 GW of green energy capacity by 2030 to meet its climate goals and energy needs. The country has pledged to reduce emissions intensity by 45% by 2030 and ensure that 50% of its power comes from non-fossil sources.

Read More: India’s Green Energy Transition: Ambitious Plans, Complex Challenges

A Step Toward Fostering A Sustainable Future

Industry bodies in the electric vehicle sector have commended Budget 2025’s National Manufacturing Mission, hailing its support for clean tech and sustainable growth through the domestic production of EV batteries, solar panels and green energy technologies.

Govind Sankaranarayanan, Co-Founder and COO of Ecofy, called the announcement of the National Manufacturing Mission a significant step toward accelerating India’s green transition. “By boosting domestic production of EV batteries and solar panels, this initiative will reduce reliance on imports, while also driving innovation and create sustainable jobs,” Sankaranarayanan said.

“We applaud the government’s vision for fostering a self-reliant and sustainable clean tech ecosystem in India,” Sankaranarayanan added.

Devndra Chawla, CEO and MD, GreenCell Mobility, also expressed his support. “GreenCell Mobility applauds the Government of India for its steadfast commitment to advancing the EV sector and fostering a sustainable future. The set up of National Manufacturing Mission and exemption on capital goods will accelerate domestic clean tech manufacturing, enhance EV battery production, and strengthen India’s renewable energy ecosystem,” Chawla stated.

He also stressed the importance of a robust EV infrastructure for industry growth and seamless integration of electric mass mobility. “The government's focus on connectivity and tourism infrastructure, along with income tax relief, will boost economic activity by increasing disposable income for the middle class,” Chawla added.

Sudhir Mehta Founder and Chairman EKA Mobility emphaised that the Finance Minister’s initiatives, including the National Manufacturing Mission and strategic exemptions on critical minerals for EV battery production, are crucial steps toward strengthening the cleantech ecosystem.

“Importantly, the budget exempts 12 more minerals, cobalt powder, lead, zinc, lithium-ion battery trash, and other essential inputs from Basic Customs Duty (BCD). There has also been a noticeable increase in the manufacturing of 35 new EV capital products. These programmes demonstrate a strong commitment to sustainability, innovation, and greater industrial competitiveness, setting the framework for transformative progress in a variety of critical sectors. The Budget 2025 accelerates the transition to a more sustainable and environmentally conscious future,” concluded Mehta.