Union Budget 2025: India renews focus on climate resilience and energy transition
Finance Minister Nirmala Sitharaman stated that the government would provide support to domestic industries involved in manufacturing solar panels, EV batteries, wind turbines, and electrolysers.
The Union Budget for 2025-26, presented on February 1, outlined several initiatives aimed at enhancing climate resilience and advancing energy transition. These include the National Manufacturing Mission, High Yielding Seeds Mission, and Nuclear Energy Mission.
Finance Minister Nirmala Sitharaman stated that the government would provide support to domestic industries involved in manufacturing solar panels, EV batteries, wind turbines, and electrolysers. Additionally, she highlighted plans to produce 100 GW of nuclear energy by 2047. The government also intends to invest in small modular nuclear reactors (SMRs) and develop improved seeds to help farmers cope with droughts, pests, and changing weather patterns.
Sitharaman introduced a National Manufacturing Mission to support the growth of small, medium, and large industries under the ‘Make in India’ initiative. She emphasised that this mission would promote clean tech manufacturing, in line with India’s commitment to climate-friendly development. The focus of the mission would include solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, very high-voltage transmission equipment, and grid-scale batteries.
Furthermore, the government will launch a ‘National Mission on High Yielding Seeds’ to assist farmers in adapting to climate change. This mission aims to improve research and develop seeds that can yield higher outputs, resist pests, and withstand extreme weather conditions.
Sitharaman also confirmed that India is working towards generating 100 GW of nuclear energy by 2047 as part of its clean energy transition. She announced that a Nuclear Energy Mission for the research and development of Small Modular Reactors (SMRs) would be established with an outlay of ₹20,000 crore, with at least five indigenously developed SMRs set to be operational by 2033. To encourage private sector involvement, the government plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act.