India’s Budget 2026–27 Gives Big Boost to Clean Energy and Storage Growth

India’s Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman on February 1, 2026, has laid out strong policy support and financial incentives aimed at expanding the country’s renewable energy and energy storage sectors, officials and industry experts say. The measures are designed to accelerate large-scale clean power integration, strengthen domestic manufacturing, and advance new technologies that support long-term energy security and sustainability.

The Budget extends and introduces key tax breaks and exemptions for critical components like lithium-ion battery cells and solar glass, boosting local production and reducing import reliance. A major new ₹20,000 crore Carbon Capture Utilisation and Storage (CCUS) scheme was also announced to support decarbonisation in heavy industries. The Ministry of New and Renewable Energy’s allocation saw a substantial rise, underscoring government focus on clean power deployment and storage growth.

Overall, the fiscal plan aims to support India’s transition to a cleaner energy system by encouraging renewable capacity expansion, reinforcing energy storage solutions, and fostering domestic clean-technology manufacturing.