changeadminQuoting Telugu poet and playwright Gurajada Appa Rao’s famous saying, ‘A country is not just its soil; a country is its people’, India’s Finance Minister presented the country’s Budget 2025-26 with the theme “Sabka Vikas” stimulating balanced growth of all regions.
India’s Budget for 2025-2026 promises continued efforts to accelerate growth, secure inclusive development, invigorate private sector investments, uplift household sentiments, and enhance the spending power of India’s rising middle class. The Budget proposes development measures focusing on the poor (Garib), Youth, farmers (Annadata) and women (Nari).
At Change Started, every year we track the Indian government’s Budgetary measures and reforms related to sustainability, the environment and addressing climate change.
Budget 2025 highlights – Environment and Climate Change
Clean Tech Manufacturing
The government announced the setting up of a National Manufacturing Mission covering small, medium and large industries by providing policy support, execution roadmaps, governance and monitoring framework for different ministries and states.
To encourage climate-friendly development, the Mission will also support Clean Tech manufacturing.
This will aim to improve domestic value addition and build an ecosystem for solar PV cells, EV batteries, motors and controllers, electrolyzers, wind turbines, high-voltage transmission equipment and grid-scale batteries.
Electric Vehicles Ecosystem
As India makes the transition to electric vehicles (EVs), the need for critical minerals is an important issue to address for the Indian government.
In the Budget 2025, to boost the manufacturing of Lithium-ion batteries in India, 35 additional capital goods for EV battery manufacturing are added to the list of exempted capital goods.
Further, to support Domestic Manufacturing and Value Addition, Basic Customs Duty (BCD) on 25 critical minerals, that are not available in India were exempted in Budget announcements in July 2024. The Budget 2025-26 fully exempts cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals.
Nuclear Energy
As the world faces challenges related to climate change, the need for reliable and sustainable energy sources has increased exponentially. Nuclear energy can play a critical role in India’s energy mix as it is more sustainable and environmentally friendly than fossil fuels.
In the Budget 2025, it was announced to set up a Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of Rs. 20,000 crore. At least 5 indigenously developed SMRs will be operationalized by 2033.
The minister in her budget speech highlighted that the development of at least 100 GW of nuclear energy by 2047 is essential for India’s energy transition efforts.
For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up.
Eco-Friendly Toys
India has a rich tradition of unique, handcrafted toys made from natural materials such as wood, clay, and fabric. These eco-friendly toys are spread across India, like Channapatna and Kinnal toys in Karnataka, Etikoppaka in Andhra Pradesh, Puppets in Gujarat and Rajasthan, and Terracotta and Clay Toys.
Building on the National Action Plan for Toys, the Budget 2025 announced the implementation of a scheme to make India a global hub for toys.
The scheme will focus on the development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys that will represent the ‘Made in India’ brand.
You can read the highlights of the Indian Budget 2023 from a Climate Change and environmental perspective.Read here.
You can read the highlights of the Indian Budget 2024 from a Climate Change and environmental perspective. Read here.
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