The Union Budget 2026–27 outlines a clear and ambitious roadmap for India’s infrastructure-led and technology-driven growth. With a record ₹12.2 lakh crore capital expenditure, the Budget reinforces the government’s commitment to strengthening power infrastructure, accelerating clean energy adoption, expanding domestic manufacturing, and enhancing digital and logistics capabilities.
For the electrical and energy sector, the focus on power sector reforms, transmission augmentation, renewable energy integration, semiconductor and electronics manufacturing, critical minerals, MSME support, and skilling is expected to drive investments, improve supply-chain resilience, and enable faster project execution. These measures align closely with India’s long-term goals of achieving 500 GW of renewable capacity by 2030 and advancing the vision of Viksit Bharat and Aatmanirbhar Bharat.
Industry leaders from across the power, energy, electronics, and advanced manufacturing ecosystems share their perspectives on how Budget 2026–27 will shape growth opportunities, innovation, and India’s transition toward a globally competitive and sustainable industrial future.
Let’s dive deep into the perspective of the Industry Leaders on the Union Budget!
Mr. Sunil Mathur, Managing Director and CEO, Siemens Energy, said, “We welcome the government’s consistent focus on long-term economic growth and structural transformation in the Union Budget 2026-27. The record INR 12.2 lakh crore capital expenditure allocation, sustained emphasis on infrastructure development, and a fiscal deficit target of around 4.3% reflect a continued and disciplined approach to strengthening India’s growth foundations.
The budget’s focus on technology-led manufacturing, digital infrastructure such as data centers, and next-generation mobility including high-speed rail supports India’s ambition to become a global innovation and manufacturing hub. Continued support for MSMEs, skilling, and ease of doing business will be critical in ensuring that growth is broad-based and resilient. As industries navigate rapid technological change, the government’s spotlight on scale, execution, and investments in connectivity, smart infrastructure, and talent development provides a clear and credible roadmap for sustainable and inclusive growth.”
Mr. Praveer Sinha CEO & MD, TATA Power, said, “The budget introduces several measures that directly support its strategic priorities in renewable generation, transmission, distribution, and domestic manufacturing. The announcements reinforce the government’s commitment to ‘Atmanirbharata’ in the energy sector, providing significant tailwinds for the company’s ongoing and future projects.”
Mr. Anil Rai Gupta, Chairman and Managing Director, Havells India Ltd, said, “We commend and congratulate the Government of India for presenting a progressive and industry-focused Union Budget 2026–27 that strengthens India’s journey toward self-reliance and global competitiveness. The proposed capital expenditure of ₹12.2 lakh crore, alongside measures to mobilise private investment through the Infrastructure Risk Guarantee Fund, accelerated CPSE real estate monetisation via REITs, and development of dedicated freight corridors with sustainable cargo focus, will accelerate execution across housing, commercial, industrial, and logistics projects.
Key interventions such as the expansion of the Electronics Components Manufacturing Scheme from ₹22,999 crore to ₹40,000 crore, the ₹10,000 crore, five-year initiative to promote domestic container manufacturing, and rationalisation of customs duties to correct inverted structures reflect a decisive push towards localisation and technology-led manufacturing. These measures are expected to drive capacity creation, strengthen supply chains, and enhance India’s competitiveness across critical industrial sectors.
By advancing the ‘Make in India’ agenda through sustained policy support, targeted investments, and focus on industrial competitiveness, this Budget lays a robust foundation for resilient, inclusive, and technology-driven growth across India’s industrial landscape.”
Mr. Rajesh Ganesh, Managing Director & CEO, Bajel Projects Ltd, said, “The Union Budget 2026-27 is a strong reflection of our government’s vision for building a ‘Viksit Bharat.’ By scaling up public capital expenditure to a historic ₹12.2 lakh crore, the Finance Minister has provided the necessary fuel to accelerate India’s infrastructure-led growth engine.
For the power sector, the budget is particularly visionary. The focus on power sector reforms, specifically the incentives for intra-state transmission augmentation, distribution returns, additional borrowing power, etc. are the catalyst needed to bridge the ‘last-mile’ connectivity gap in our national grid. As India marches toward its 500GW renewable energy target by 2030, the robustness of our transmission infrastructure becomes paramount.
We see this as a strong opportunity. The government’s emphasis on infrastructure risk guarantees and manufacturing self-reliance aligns well with our strategic pivot toward becoming a specialized power transmission EPC player. Our ongoing investments in manufacturing expansion and backward integration are designed to leverage this very momentum, ensuring we commission complex ISTS and Green Energy Corridor projects with execution excellence.”
Mr. Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions Private Limited, quoted, “The Union Budget 2026–27 charts a decisive course for India’s evolution into a global technology leader. The enhanced capital outlay of ₹12.2 lakh crore and the launch of the India Semiconductor Mission 2.0 reaffirm the government’s commitment to deep-tech indigenization. The ₹40,000 crore allocation for electronics component manufacturing is a strategic intervention that propels the ecosystem toward advanced engineering and value creation. The focus on establishing Rare Earth Corridors further strengthens the foundation for a secure and self-reliant supply chain. The budget’s emphasis on providing skilling programmes will encourage the youth to provide quality employment opportunities.
At Socomec, we welcome the government’s thrust on high-tech manufacturing and the ₹10,000 crore MSME Growth Fund, both of which will accelerate innovation and competitiveness across the electrical sector, driving the vision of an ‘Aatmanirbhar’ and ‘Viksit Bharat’ by 2047.”
Mr. Amod Anand, Co-Founder & Director, Loom Solar Pvt. Ltd. commented, “The announcements around ISM 2.0, electronics manufacturing, critical minerals, and rare earth corridors signal a fundamental shift in India’s clean energy trajectory. For the solar sector, this goes far beyond capacity expansion toward building deep technological sovereignty. India is moving from being a hardware assembler to owning critical layers of the energy-tech IP stack—control systems, forecasting platforms, and grid software that power modern solar and storage ecosystems. The rare earth corridors address a hidden but critical solar bottleneck by securing access to materials essential for high-efficiency motors, power electronics, and advanced energy systems, significantly reducing strategic dependence on China. Complementing this, customs duty exemptions for critical mineral processing, lithium-ion cell manufacturing for storage, and inputs like sodium antimonate for solar glass strengthen domestic value chains across materials, components, and technology—forming the backbone of India’s long-term energy transition and energy security infrastructure,” said Mr Amod Anand, Co-Founder & Director, Loom Solar.
Mr. Vineet Agarwal Managing Director, Transport Corporation of India Limited (TCI) said, “The Union Budget 2026–27 sends a strong and reassuring signal on India’s manufacturing-led growth agenda. By maintaining fiscal discipline with a deficit of 4.3% while scaling capital expenditure to ₹12.2 lakh crore, the Government has reinforced confidence in long-term investments, capacity creation, and a stable, predictable policy environment that strengthens ease of doing business. The Budget’s sharp focus on logistics and industrial infrastructure will be a major enabler of manufacturing scale-up. Dedicated freight corridors, expansion of national waterways, high-speed rail connectivity, investments in ship-repair ecosystems, and a ₹10,000-crore push for container manufacturing will significantly reduce logistics costs and build a robust ecosystem for capital goods and supporting industries. These measures will strengthen MSMEs, crowd in private investment, and generate large-scale employment across manufacturing, logistics, and tourism-linked services. Equally important is the forward-looking emphasis on advanced manufacturing through ISM 2.0, semiconductors, data centres, and AI-led digital platforms. Together, these initiatives lay the foundation for resilient, technology-driven supply chains and position India as a globally competitive hub for manufacturing, trade, tourism, and job creation—aligned with the broader vision of Viksit Bharat.”
Mr. Parmod Sagar, Chairman, MD & CEO of RHI Magnesita India, said, “The continued momentum of infrastructure led growth, supported by an enhanced outlay of ₹12.2 lakh crore, is a welcome move and will significantly benefit enabling industries such as refractories. At RHI Magnesita, we are already investing in advanced CCUS technologies, and the government’s budgetary commitment of ₹20,000 crore towards CCUS across key sectors is a forward-looking step. This will further strengthen industry–government collaboration in accelerating progress toward India’s net zero goals.”
Mr. Vinay Rustagi chief Business Officer at Premier Energies Limited, said, “This is a forward looking budget with an eye on improving long-term energy security and domestic manufacturing industry competitiveness across different parts of the energy sector. Specifically for solar, the big increase in funds allocation for PM-Surya Ghar and KUSUM schemes to Rs. 27,000 crores would be a major help for domestic manufacturers. The government has listened to the industry and announced a provision to develop hi-tech tooling capability for precision equipment and capital goods, which will help to reduce reliance on other countries. Import duty waivers on equipment used for battery storage manufacturing and critical mineral processing are expected to reduce cost of domestically manufactured products. Other significant measures include substantial financial support for developing new technologies like carbon capture and nuclear.”
Mr. Dhaval Radia, Chief Financial Officer (India), ZEISS Group, commented, “Union Budget 2026 reinforces stability at a time when global uncertainty remains elevated. The government’s continued focus on capital expenditure, infrastructure & logistics, tech-driven compliance, and fiscal discipline provides an important foundation for medium-term growth and investor confidence.
That said, India’s next phase of value creation will increasingly depend not just on public spending alone, but on the competitiveness of its operating environment. For advanced manufacturing and healthcare technology companies, challenges today lie in structural frictions such as customs complexity, inverted duty structures, regulatory overlaps, and interpretational tax uncertainty.
As India aspires to move up the value chain – from scale to sophistication – future policy frameworks will need to place greater emphasis on predictability, simplification, and governance. This shift will be critical for attracting long-term investments, accelerating innovation, and positioning India as a global hub for precision manufacturing and technology-led growth.”
Mr. Sumit Sharma, Public Relations & Policy Advisor, Allied Engineering Works Limited, commented, “The 2026–27 Budget materially strengthens the ecosystem around smart metering through financing reform and record infrastructure investment. Public capital expenditure has been raised to ₹12.2 lakh crore, and the government has allocated an increased ₹18,000 crore toward power distribution reforms, including the RDSS to accelerate grid modernization and smart meter rollout. Proposals to restructure PFC & REC and the introduction of an Infrastructure Risk Guarantee Fund further enhance financing confidence. Taken together, these measures signal that digitally monitored power networks are now being treated as foundational national infrastructure and a long-term growth priority.”
Mr. CA Satyanarayana Baratam, Chief Financial Officer & Director, Bondada Group, quoted, “The Budget provides a clear operational framework for the next phase of expansion, driven by accelerated infrastructure creation, improved renewable energy economics, and rising demand from sectors such as data centres and advanced manufacturing. The emphasis on rail connectivity and the growth of Tier II and III hubs aligns perfectly with our execution-driven approach in power, solar, and industrial infrastructure. A key benefit is the reduced import duty on solar glass, which will lower project costs and accelerate the deployment of renewable energy projects, thereby improving their overall feasibility. These initiatives, taken together, boost scalability, strengthen domestic supply chains, and facilitate quicker on-ground execution. We view this as a critical juncture, where clear policy converges with opportunity, enabling us to broaden our presence and make a significant contribution to Bharat’s upcoming era of sustainable, infrastructure-driven growth.”
Mr. Manish Dabkara, Chairman and Managing Director, EKI Energy Services Ltd (EnKing International) and President Carbon Markets Association of India – CMAI said, “The Budget’s ₹20,000 crore outlay for Carbon Capture, Utilisation and Storage represents a significant transition from climate intent to execution. By prioritising CCUS deployment across hard-to-abate sectors such as power, steel, cement, refineries and chemicals, the government has laid the groundwork for industrial decarbonisation at scale. This is further reinforced by complementary measures supporting critical minerals, domestic manufacturing, and energy security.
Together, these initiatives strengthen the foundations of India’s emerging carbon markets by improving project viability, enabling credible emissions reduction pathways, and attracting private capital into climate solutions. The Budget positions sustainability not as a constraint on growth, but as an enabler of competitiveness, industrial resilience, and long-term economic stability; an approach that will be vital as India advances toward its net-zero ambitions.”
Mr. Raju Kumar, Partner and Energy Tax Leader, EY India, said, “Energy transition as a question of Industrial resilience and system reliability, not just capacity expansion seems to be the key mantra of Budget 2026. The establishment of Rare Earth Corridors in Odisha, Andhra Pradesh, Kerala and Tamil Nadu, alongside customs-duty exemptions for capital goods used in critical-mineral processing, directly addresses input security for renewables, storage and electric mobility. The ₹20,000-crore CCUS programme provides a credible pathway to decarbonise power, steel and cement, while extending customs-duty exemptions for nuclear projects till 2035 strengthens long-term baseload stability. On the tax front, exemptions for battery energy storage systems, lithium-ion cells, solar-glass inputs and biogas-blended CNG materially improve project viability. Collectively, these measures are likely to compress project costs, unlock private capital, and accelerate deployment of storage-backed renewables, while the restructuring of PFC and REC could improve credit flow and execution discipline across the power sector.”
Mr. Rajnish Gupta, Partner Tax and Economic Policy Group, EY India, said, “India has significant resources of rare earths and this will bring them to production in a shorter time frame. A coordinated national framework can crowd in private investment, enable faster clearances and link mining with downstream applications such as EVs, electronics and defence. Such corridors can also reduce India’s import dependence over time and position the country as a trusted alternative supplier in global critical mineral value chains. Customs duty concessions on processing equipment will support scale, efficiency and competitiveness in the rare earth value chain.”
Ms. Heena Khushalani, Partner, Climate Change and Sustainability Services, EY India, said, “Energy transition continues to be a major theme for India’s sustainable development. The current budget allocation of 20000 Crores to strengthen CCUS is a welcome move and will go a long way in supporting the large industries in their decarbonisation targets, also supporting their export products be competitive in global markets. The proposal to restructure PFC and REC to scale and improve efficiency will only strengthen the country’s financing towards energy transition.”
Ms. Garima Bharadwaj, Co-founder & CTO, Enlite, said, “Tech‑stack exemptions for data centres are a pragmatic move; reducing capex by 10–15 % and helping India reach ~4.5 GW capacity sooner, while expanding green‑certified facilities. Broader Budget 2026 measures – including a record ₹12.2 lakh crore infrastructure capex, a ₹40,000 crore electronics components scheme, and a ₹20,000 crore carbon capture push – will accelerate Make‑in‑India manufacturing, smart energy systems and industrial decarbonization. Across urban assets, real‑time data, automation and analytics will turn sustainability intent into measurable operational and climate impact,”
Ms. Dr Vibha Dhawan, Director General, TERI – The Energy and Resources Institute, said, “The Union Budget 2026 consolidates India’s long-term transition towards clean, secure, and innovation-driven growth. The continued emphasis on green energy—particularly renewed attention to nuclear power alongside solar and battery energy storage—highlights the importance of diversifying India’s energy mix with reliable baseload capacity, especially for hard-to-abate sectors. Equally significant is the Budget’s push to mainstream artificial intelligence across sectors, from manufacturing to public services, with a clear focus on AI-led productivity gains, efficiency, and digital transparency.
In agriculture, where inefficiencies in water use, fertilizer application, and labour continue to constrain outcomes, AI-enabled resource efficiency and precision tools have the potential to be transformative. Together with enhanced support for clean energy, rural energy transition mechanisms, and the expansion of digital infrastructure, the Budget signals a future where distributed renewable systems, data-driven decision-making, and sustainable agriculture reinforce one another. Taken together, these interventions lay a strong foundation for sustainable growth aligned with India’s Viksit Bharat vision by 2047.”
Mr. Jayadev Galla , Chairman and Managing Director, Amara Raja Energy & Mobility Ltd, said,”The sustained focus on infrastructure, especially logistics, freight corridors and inland waterways, is critical for manufacturers as it lowers transportation costs and improves supply chain reliability. We welcome the focused support for domestic lithium-ion cell manufacturing, energy storage, and critical minerals, which are essential for reducing import dependence,”
Mr. Devansh Jain, Executive Director, INOXGFL Group, said, “We thank the Government of India led by Hon’ble Prime Minister Shri Narendra Modi, and Hon’ble Finance Minister Shrimati Nirmala Sitharaman for presenting the Union Budget.
The Union Budget 2026–27 underscores the Government of India’s sustained commitment to building a resilient, low-carbon energy system—an approach that closely aligns with INOXGFL Group’s integrated clean energy strategy across renewables, manufacturing and infrastructure.
The continued policy support for battery energy storage systems, including customs duty exemptions for lithium-ion cell manufacturing, along with duty relief for key solar manufacturing inputs, will play a critical role in strengthening grid stability and accelerating large-scale renewable integration. These measures are particularly relevant for developers and manufacturers working to build end-to-end domestic clean-energy value chains.
The Budget’s ₹20,000 crore allocation for carbon capture, utilisation and storage (CCUS) further complements India’s transition by offering a pragmatic decarbonisation pathway for energy-intensive industries, while preserving industrial competitiveness and energy security.
Overall, the Budget reflects a balanced and forward-looking energy vision—one that combines clean energy deployment with infrastructure expansion, manufacturing depth and self-reliance. We commend the government for laying a strong and credible foundation to support India’s long-term clean energy growth and industrial transformation.”
Mr. Dr. Harshad Mehta, Non-Executive Chairman, RIR Power Electronics Limited, said, “We welcome the Union Budget 2026–27 and appreciate the Government’s continued focus on building a robust, self-reliant semiconductor and advanced manufacturing ecosystem. The transition from India Semiconductor Mission (ISM) 1.0 to ISM 2.0, spanning equipment and materials manufacturing, full-stack Indian IP, and resilient supply chains, addresses the structural needs of a capital-intensive industry with development cycles. The emphasis on industry-led R&D, talent development, and strategic sectoral scaling significantly strengthens India’s semiconductor value chain. Additionally, the operationalisation of 20 new National Waterways, beginning with NW-5 in Odisha, will further enhance logistics efficiency and enable faster market access from our upcoming Odisha facility. Collectively, these initiatives reinforce India’s ambition to emerge as a credible, competitive, and self-reliant manufacturing hub on a global scale.”
Mr. Rajesh Chhabra, General Manager, APAC, Large Markets, Acronis, said, “We applaud the administration for realizing how AI and other cutting-edge technology may propel inclusive national advancement. A strong basis for digital growth is established by the focus on large-scale AI capacity construction, which is backed by specialized technology and R&D missions. In addition to accelerating innovation, these measures will improve the security and resilience of India’s quickly growing digital environment.”
Mr. Piyush Goyal Co-Founder & CEO, Volks Energie, said, “Budget 2026 marks a decisive shift toward building resilient, future-ready infrastructure. The sustained push on industrial corridors, freight connectivity and urban infrastructure, backed by a capital expenditure outlay of ₹12.2 lakh crore, significantly expands India’s physical and economic backbone. In this context, the exemption of basic customs duty on capital goods used for manufacturing Battery Energy Storage Systems is a timely and strategic move. It lowers costs, strengthens domestic manufacturing, and accelerates the integration of energy storage into large infrastructure projects. As infrastructure scales, solutions such as BESS will be critical for managing peak demand, ensuring grid stability, and enabling a reliable, sustainable energy ecosystem aligned with India’s long-term growth and climate goals.”
Mr. Rahul Munjal HERO Chairman and Managing Director, Hero Future Energies, said, “I would like to congratulate the Hon’ble Finance Minister for rolling out a pragmatic yet visionary Union Budget, aimed at building a developed and self-reliant India. It sets a roadmap for inclusive, sustainable and accelerated economic growth, with a clear focus on robust infrastructure and connectivity, domestic manufacturing excellence, balanced regional growth and creation of a future ready workforce. The government’s reform agenda marks a decisive shift from improving the ‘ease of doing business’ to accelerating ‘the speed of doing business’, through simplified regulations and technology-enabled approvals.
Targeted customs duty exemptions for lithium-ion cells, battery energy storage systems and key clean-energy manufacturing inputs will help scale domestic capacity and improve project viability. The commitment to carbon capture, utilisation and storage acknowledges the need for credible transition pathways for sectors such as power, steel, cement and refining, while long-term support for nuclear energy creates a stable framework for capital-intensive energy investments.”
