Union Budgets began reflecting greater climate concerns from 2021, in the thick of the COVID-19 pandemic, with a modest ₹4,500 crore to localise solar photovoltaic production and to reduce India’s dependence on Chinese imports. The Budget also substantially scales up the PM Surya Ghar Muft Bijli Yojana rooftop solar scheme — ₹22,000 crore in 2026-27 from ₹17,000 crore (RE) for the current year. For nuclear energy, the government has extended zero basic customs duty on imports of nuclear plant equipment until 2035. Green hydrogen, despite budgetary support, continues to see modest actual spending, highlighting the persistent gap between policy ambition and execution. Overall, India’s climate budget for 2026-27 repeats a pattern: big on intent, cautious on allocations, and uncertain in its ability to mobilise the private capital required to accelerate decarbonisation across vital sectors.

Source: The Hindu February 05, 2026 18:52 UTC