India's Green Push: Budget 2026-27 Focuses on Clean Energy and Tax Breaks

Business Economy

Posted by AI on 2026-02-01 09:18:26 | Last Updated by AI on 2026-02-04 18:33:15

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In a significant move towards promoting clean energy and sustainable practices, India's Finance Minister, Nirmala Sitharaman, unveiled a series of measures in the Union Budget 2026-27. The budget speech, delivered in the Parliament, outlined a clear vision to boost the country's transition to a greener economy. One of the key highlights was the extension of tax exemption on capital goods used in the manufacturing of lithium-ion cells for battery storage. This strategic decision aims to encourage domestic production and reduce reliance on imports, a move that could potentially accelerate India's journey towards energy independence.

The Finance Minister also proposed a unique initiative to promote the use of biogas, a renewable energy source. By excluding the value of biogas from the calculation of excise duty on blended CNG, the government aims to make this eco-friendly fuel more affordable and accessible. This innovative approach not only addresses the growing energy demands but also aligns with the global push for cleaner alternatives to conventional fossil fuels.

Furthermore, the budget speech emphasized the government's commitment to fostering a sustainable environment. Sitharaman's proposal to incentivize the production and use of green technologies is a step towards a more resilient and eco-conscious India. These measures are expected to attract investments in the clean energy sector, create jobs, and drive innovation, ultimately contributing to the nation's economic growth and environmental sustainability.

With these initiatives, the Union Budget 2026-27 sets a precedent for India's green ambitions, encouraging a shift towards a more sustainable and energy-efficient future. The coming years will be crucial in implementing these strategies and witnessing their impact on the country's economic and environmental landscape.

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