India's 2027 Budget Prioritizes Clean Energy and Domestic Manufacturing with 40% Increase in Clean Energy Spending
The Indian budget for fiscal year 2027 allocates nearly $5 billion for clean energy, reflecting a 40% increase over the previous year. The focus has shifted towards domestic manufacturing and industrial decarbonization, prioritizing carbon capture, energy storage, and critical mineral supply chains.
The government has set aside $2.2 billion for carbon capture technologies and eliminated import duties on key components. Despite having almost 37 GW of solar cell production capacity, utilization remains below 30%.
The National Critical Mineral Mission receives $4 billion in funding, while the National Green Hydrogen Mission allocation is $68 million. Challenges in project execution and reliance on imports, particularly from China, continue to hinder progress.
