01/02/2026
🇮🇳 India Budget 2026–27
What’s on energy??
This Budget is not just about clean energy. It’s about energy security, industrial competitiveness, and system resilience in a volatile world.
A few signals worth paying attention to 👇
🔹 Significant support for CCUS
A clear acknowledgement that India’s energy transition will need abatement, not just substitution - especially for hard-to-abate industries.
🔹 Strengthening the solar manufacturing ecosystem
Customs duty exemptions on key inputs like sodium antimonate to reduce bottlenecks in solar glass which is often an overlooked vulnerability in the value chain.
🔹 Battery and storage push
Extending basic custom duty exemptions for capital goods used in lithium-ion cell manufacturing supports domestic battery energy storage - critical for grid stability as renewables scale.
🔹 Critical minerals: from access to processing
Duty exemptions on capital goods for mineral processing signal a move up the value chain—where real energy security will be won or lost.
🔹 Nuclear as a long-term anchor
Extending customs duty exemptions for nuclear power projects till 2035 (and across capacities) reinforces nuclear’s role in clean baseload and strategic stability.
🔹 Biogas gets a fiscal boost
Excluding biogas value from excise duty on blended CNG improves project economics for decentralized, circular energy solutions.
Finally, energy security in the 21st century isn’t just about securing energy needs. It’s about where data lives, how it’s powered, and who controls the infrastructure behind it.
🔹 A quiet but powerful signal on the digital–energy nexus
The Budget also offers tax holidays until 2047 for foreign companies providing cloud services to global customers through India-based data centres, along with a 15% safe-harbour margin for entities operating data centre services from India. This policy support ties together digital sovereignty, energy demand planning, investment certainty, and long-term competitiveness - all the way to 2047.
That’s all a good sign for the energy needs of the country and the world. Building security, competitiveness and resilience is the need of the hour. ⚡