India's 2027 Budget Prioritizes Clean Energy and Domestic Manufacturing with 40% Increase in Clean Energy Spending
India's 2027 budget allocates nearly $5 billion for clean energy, a 40% increase from the previous year, focusing on carbon capture, energy storage, and domestic manufacturing. The budget emphasizes industrial policy for energy transition, while the government aims to strengthen critical mineral supply chains and reduce import duties on essential components. Despite these efforts, challenges in project execution and market constraints persist, affecting the country's clean energy ambitions.
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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.
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