Will India's energy sector get a significant boost in budget 2024–25?

23 Jul 2024

Due to the Lok Sabha elections conducted in April–May 2024, the government was constricted from presenting an interim budget before the House, which granted the government the authority to allocate limited funds until the results of the Lok Sabha elections were announced and a newly elected government took over the office. Accordingly, it was not expected that any key sectorial reforms would be implemented in the interim budget.

One of the primary highlights of the interim budget was the allocation of Rs. 600 crore by the government to the National Green Hydrogen Fund, with the objective of achieving India's commitment to 'net zero' by 2070. The government has also allocated Rs. 10,000 crore towards solar power projects across the country (a significant increase of 110% compared to the Rs. 4,757 crore allocated in the Union budget for FY 2023–24). The increased allocation is due to the implementation of the PM-Surya Ghar: Muft Bijli Yojna, which aims to install up to 1 crore solar rooftop systems in residential sectors.

After the Lok Sabha elections, it is expected that the union budget for FY 2024–25 will be presented to the parliament in July 2024. Taking into account that the energy and renewables sector has been a key focus area of the current government and other governments across the world, it is expected that the newly formed NDA government will continue to focus on the energy and renewable sector.