MR. ANKIT PATEL

Q.How will the government ensure that the proposed incentives for renewable energy manufacturers lead to actual growth in domestic production and job creation?

Past budgets introduced various initiatives, schemes, and incentives that have benefited the renewable energy sector. The Production Linked Incentive (PLI) scheme for solar photovoltaic (PV) modules, introduced in 2020, saw allocations of INR 19,500 crore in 2022 and INR 16,394.75 crore in 2023. Extending schemes like PLI and expanding the Approved List of Models and Manufacturers (ALMM) to include more Indian manufacturers will undoubtedly drive domestic production and eventually lead to job creation. To achieve substantial results, the government must ensure strategic implementation and effective monitoring of these initiatives. Additionally, it needs to introduce stricter anti-dumping measures to protect domestic manufacturers and foster healthy competition in the Indian market. For job creation, skill development is crucial. The government should invest in and promote worldclass training programs and institutions. Aligning vocational training initiatives with industry demands and equipping the workforce with specialized skills in solar EPC, operations, instrumentation & control (I&C), and maintenance will be highly beneficial.

Q.What steps are being taken to address the challenges of integrating renewable energy into India’s current grid infrastructure, which frequently struggles with stability and reliability?

India has committed to ambitious renewable energy targets, necessitating substantial steps in multiple areas. Grid connectivity and stability remain major challenges in the renewable energy sector. Strengthening transmission infrastructure and enhancing energy storage solutions are key priorities for a robust and modernized grid network. The Green Energy Corridor project, along with increased investments in battery and pumped hydro storage, will help manage the intermittency of solar and wind power. Advancing digitalization, incorporating AI-backed forecasting models, and developing real-time load management systems can significantly improve grid stability. Strengthening interstate transmission networks to facilitate seamless integration of renewable energy into the national grid is also crucial. Encouraging and incentivizing private-sector participation would further enhance grid resilience.

Q. Will there be a detailed roadmap or timeline for the growth of largescale renewable energy projects, especially in underdeveloped regions where such infrastructure is most needed?

To drive large-scale renewable energy adoption in underdeveloped regions, the government needs a clear, strategic roadmap. This could include statewise capacity addition targets and prioritization of areas with high solar and wind potential. A recent India Ratings & Research report maintains a stable outlook for renewable energy, particularly solar and wind projects, in FY26. With national energy demand expected to grow by 5%–5.5% YoY in FY25, and an anticipated 22–25 GW increase in solar capacity alone, financial stability and continuous domestic and foreign investments are critical. India’s favourable growth trajectory and power policies continue to attract investor interest, particularly in the C&I sector. To sustain this momentum, the Government has introduced a streamlined and actionable policy framework, offering progressive energy policies, fiscal incentives such as tax benefits and subsidies, and facilitating larger FDI inflows. Additionally, co-financing largescale renewable projects across various regions has proven to be a game-changer

Q.Do you believe this budget aligns with industry expectations and current economic needs?

The Union Budget 2025 emphasizes sustainable development and clean-tech manufacturing. It aims to enhance domestic value addition while fostering a progressive ecosystem for solar PV cells, EV batteries and other renewable energy components. However, to fully meet industry expectations, key challenges such as regulatory clarity, efficient policy execution, improved financing accessibility, and stable investments needs to be interested at implementation-level. While continued support through PLIs and fiscal incentives is encouraging, a well-defined roadmap for utility-scale renewable projects and energy storage, along with stronger public-private partnerships for GW-scale projects, would instill greater investor confidence. Further reforms in net metering policies and hybrid energy solutions could significantly strengthen the sector’s growth trajectory. Although the budget moves in the right direction, stronger execution mechanisms are needed to align policies with industry needs.

Q.What are your expectations for the market and economy following this announcement?

With favorable policies already in place, we anticipate increased investments in renewable energy, particularly in solar and wind projects. Continued support for local manufacturing through PLI expansion and related initiatives is expected to drive significant growth in India’s domestic renewable market and the export of renewable products and services. Given the growing awareness and interest in renewable adoption, particularly in the C&I sector, the government must further accelerate progress with clear, definitive, and progressive policies. Effective implementation of these measures will strengthen India’s position as a global leader in sustainable energy.

Q. How do you see the budget shaping the overall economy, including inflation, consumer spending, and business confidence?

India’s commitment to achieving carbon neutrality by 2070 requires revolutionary steps to reduce fossil fuel dependence, ensure long-term energy security, stabilize prices, and mitigate inflation risks. A focused approach to renewable energy expansion will have a broad impact on the economy. Lower electricity costs from widespread solar and wind adoption could reduce operational expenses for industries, ultimately benefiting consumers. Business confidence in the renewable sector will rise with financial incentives for MSMEs, SMEs, and start-ups, as well as improved policy execution, single-window clearances, and faster approvals. A structured approach to financing—through Green Sovereign Bonds, low-interest loans from banks and NBFCs, and investor-friendly policies—will drive greater participation in utility-scale renewable projects. In the long run, a thriving renewable energy sector will contribute to sustainable economic growth, reduce trade deficits on energy imports, and reinforce India’s commitment to a low-carbon future.