India’s Budget 2026 Offers Duty Cuts to Speed Up Clean Energy Transition

The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, introduces significant customs duty exemptions to drive investment in nuclear power, battery energy storage systems (BESS), and related clean energy technologies, the government said. These measures are aimed at lowering costs for key equipment imports and accelerating India’s shift away from fossil fuels toward a more sustainable energy mix.

Under the new budget proposals, the basic customs duty (BCD) exemption on imports of equipment for nuclear power projects has been extended until 2035 and broadened to include all nuclear plants regardless of size. The aim is to reduce the expense of nuclear infrastructure and support India’s long-term ambition to expand atomic energy capacity as a low-carbon power source.

The budget also expands the duty exemption on capital goods used in manufacturing lithium-ion cells to now cover those for Battery Energy Storage Systems, a key technology for storing renewable electricity and stabilising the power grid. Separately, basic customs duty on sodium antimonate, a material used in making solar glass, has been removed to help cut costs in solar panel production.

Officials noted that these tax incentives are designed to make domestic clean energy manufacturing more competitive, attract investment, and support India’s push to produce and integrate more renewable and low-carbon power, in line with national climate and energy goals.