The boost to capital spending in this year’s defence budget underscores emphasis on modernization, indigenization and readiness.

Budget 2026 reinforces this vision by strengthening district hospitals and expanding emergency and trauma care capacity

By signalling policy support for these creative and live entertainment sectors, the Budget acknowledges their growing economic contribution.

Stronger digital and logistics rails help products move faster and more efficiently

 Budget sets the context for the next phase of India’s technology journey

With improved roads, rail links, airports, and public utilities, Tier 2 and Tier 3 markets will become attractive to developers and homebuyers

The thrust on new age sectors, including AI integration and technology deployment across manufacturing and supply chains, further enhances India’s competitiveness and growth potential 

Budget 2026–27 reflects a constructive policy dialogue between government and stakeholders

SGBs remain tax-free if held to maturity, while capital gains from secondary market trades or early redemption are now taxable.

Scheme to help achieve export target of $100 billion by 2030, says MATEXIL Chairman Shaleen Toshniwal

India’s renewable energy industry is urging the government to use Union Budget 2026 to unlock stalled projects, lower financing costs, and accelerate domestic manufacturing across solar, storage, and grid infrastructure.

From pv magazine India

The upcoming budget must prioritize in-house technology and equipment development, provide clarity on delayed power purchase agreements (PPAs) and power sale agreements (PSAs), increase budgetary allocation and policy support for Green Energy Corridors, introduce production-linked incentives for battery energy storage system (BESS) manufacturing, establish an Approved List of BESS Integrators (ALBI), lower the cost of capital through priority sector lending, extend ALMM for solar cells, and continue the ISTS waiver, among other measures.

1. Focus on In-House Technology & Equipment Development

The government should place strong emphasis on in-house development of cutting-edge solar technologies, enabling India to achieve self-reliance in a shorter timeframe and indigenize next-generation technologies.

In addition to this critical, solar, cell & module manufacturing equipment should be brought und er the PLI framework. This support may subsequently be extended in a phased and structured manner to wafer and ingot manufacturing equipment. India already possesses strong equipment manufacturing capabilities across multiple industrial sectors. Leveraging these capabilities, coupled with indigenous technology development, can rapidly position India as a globally competitive and self-reliant solar manufacturing hub.

2. Clarity on Delayed PPAs and PSAs

As of January 2026, over 45 GW of renewable energy capacity in India is facing large delays in signing Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs), with developers. This uncertainty has raised serious concerns among investors and lenders. The industry requests the government to provide clear confirmation in the budget that these PPAs and PSAs will be signed expeditiously. Such assurance will significantly improve sectoral sentiments and catalyse increased inflows of both equity and debt into India’s renewable energy sector.

3. Strengthening Green Transmission Infrastructure

The industry appreciates the increased budgetary allocation and policy focus on Green Energy Corridors. Continued emphasis with higher allocations and faster execution is critical to ensure timely grid connectivity for upcoming renewable capacity.

Additionally, procedures and guidelines at the state level for grid connectivity and charging infrastructure should be further streamlined to ensure faster approvals, seamless evacuation, and immediate power injection upon physical commissioning of projects.

4. PLI for BESS Manufacturing

“Solar and BESS Manufacturing” to be re-categorized into “Infrastructure” category of RBI for ease of financing and re-financing. A dedicated PLI scheme for BESS manufacturing—similar to solar—should be introduced, encouraging local integration of components such as Containers, HVAC systems, Cabling, Fire-fighting systems. Only Lithium-ion cells, which are currently not manufactured at scale in India, should be permitted for import under this scheme.

5. Approved List of BESS Integrators (ALBI)

An Approved List of BESS Integrators, on the lines of ALMM for solar modules, should be introduced. This will ensure grid-connected BESS assets meet quality and safety standards, minimize systemic risks to the electricity grid and Improve investor and lender confidence.

6. Lower Cost of Capital & Priority Sector Lending

India is estimated to require USD 200+ billion in investments by 2030 to meet its clean energy targets. Access to competitively priced capital will be critical. The industry requests the inclusion of renewable energy projects under Priority Sector Lending and Re-introduction of lower TDS rates on interest for ECBs and Rupee-denominated bonds. These measures will materially reduce financing costs and accelerate project deployment.

7. Extension of ALMM for Solar Cells

Considering manufacturing of solar cells in the country is still picking up and with an increasing demand for Solar cells &supply demand mismatch, government should consider exceeding its target to introduce ALCM for cells for a further period of 2 years.

8. Extension of ISTS Waiver

Interstate charges on power transmission through ISTS connectivity are waived till 2025. This should be further extended over the next 5 years to give a steeper boost to C&I segment which has large ISTS opportunities.

9. Concessional Corporate Tax Rate for Manufacturing

The concessional 15% income tax rate for new manufacturing entities in the renewable energy sector should be reintroduced in Budget 2026 and to be extended for a minimum of five years.

10. Exclusion from Deemed Dividend Tax

Renewable energy companies should be excluded from deemed dividend tax provisions in cases where loans or advances are provided by SPVs to shareholders. This will enable optimal capital utilization within project groups.

11. Reduction of GST on BESS

Lower GST on BESS and related products from existing18% to 5%. BESS enables grid stability and allows more RE to be integrated into the grid. Lower GST will accelerate adoption, encourage domestic manufacturing, support job creation, exports, and emissions reduction.

12. GST Exemption on Corporate Guarantees

Exemption of GST on Corporate Guarantee for renewable energy companies wherein Corporate Guarantee is provided by Holding Company to lenders in respect of funding obtained by SPVs.

The Union Budget 2026-27 aims at strengthening clean energy development, clean technology manufacturing, lithium-ion battery production, and tariff rationalisation. There has been a significant increase in budgetary allocations for the Ministry of New and Renewable [...]

The post Budget 2026 Reactions: Views of clean energy industry stakeholders appeared first on Renewable Watch.

India’s 2026 Union Budget promotes the energy storage sector by offering fiscal incentives for lithium-ion battery manufacturing. The extension of customs duty exemptions for related equipment aims to reduce production costs, improve viability, and attract investments. This policy supports renewable energy integration and positions India as a competitive hub in battery technology.

The post Union Budget 2026 Strengthens India’s Grid Storage Ecosystem with Targeted Push for Lithium-Ion BESS Manufacturing appeared first on SolarQuarter.

The country’s standing among the world’s worst performing stock markets this year fuelled expectations of steps to revive earnings and lure back global funds

Capital expenditure remains a key pillar, with overall government capex projected to grow 11 per cent in FY27

The allocation for the Lok Sabha has been pegged at ₹1,009 crore, which includes grants-in-aid for Sansad TV.

Modi’s spending plan promised new outlays on infrastructure and an 18% hike in defense expenditure — a bulwark against the challenge posed by dual rivals China and Pakistan

Budget strikes a balance between reducing the debt-to-GDP ratio and maintaining a gradual pace of fiscal consolidation, the report observes

Fitch has a BBB- sovereign rating for India, while Moody’s rates it Baaa3. S&P upgraded India to BBB in 2025 for its first such upgrade in 18 years