The Union Budget for FY 2026-2027 presents a forward-looking roadmap aligned with India’s vision of Viksit Bharat and to target above 7% growth rate. The budget introduces transformative reforms across six strategic domains that will enhance the nation’s growth potential and global competitiveness over the next five years.
The Finance Minister has taken a balanced approach to growth amid a challenging global environment through comprehensive reforms in Taxation, the Power Sector, Urban Development, Mining, the Financial Sector, and Regulatory frameworks.
A particularly impactful measure is the extension of Basic Customs Duty (BCD) exemption to capital goods used in manufacturing Lithium-Ion Cells for battery energy storage systems. This policy will create a multiplier effect, accelerating the adoption of clean energy solutions across India’s manufacturing sector.”
Mr. Manan Thakkar, Co-Founder & Managing Director, Prozeal Green Energy Limited
“To sustain India’s robust economic growth, the Finance Minister has prioritised power sector reforms in the Union Budget for FY 2026-27. The proposed incentivization of electricity distribution reforms and augmentation of intra-state transmission capacity will accelerate the adoption of advanced transmission infrastructure and energy storage systems. These measures are designed to strengthen the financial health and operational capacity of electricity companies. States will be allowed additional borrowing of 0.5 percent of GSDP, contingent upon implementing these reforms.
In line with India’s commitment to climate-friendly development, the government has announced the National Clean Tech Manufacturing Mission to support clean technology manufacturing across small, medium, and large industries. The mission will focus on critical sectors, including motors and controllers, electrolysers, wind turbines, very-high-voltage transmission equipment, and grid-scale batteries.
To bolster domestic manufacturing capabilities, the FM has granted an exemption from Basic Customs Duty (BCD) on imports of sodium antimonate used in solar glass production. This initiative aims to enhance domestic value addition and strengthen India’s ecosystem for solar PV cells and EV batteries.”
Mr. Shobit Rai, Co-Founder & Managing Director, Prozeal Green Energy Limited
