Finance Minister NirmalSitharaman’s Union Budget 2026-27 bolsters green supply chains through duty free inputs for India’s INR 20,000 crore Carbon Capture Utilisation and Storage scheme and exemptions for nuclear power, battery storage, critical minerals and solar glass manufacturing.

The 2026-27 budget, with a GDP growth target of around 7%, uses a mix of public spending, tax measures, and planned institutional reforms that can lower long-term economic risks. And while it doesn’t present a separate climate chapter, the budget’s provisions embed sustainability into core growth strategy that seeks to strengthen clean supply chains.

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Energy transition is seen as a priority with allocations across the Ministry of New and Renewable Energy (INR 32,915 crore), Ministry of Power (INR 29,997 crore) and the Department of Atomic Energy (INR 24,124 crore) working together to reduce risks from intermittency and import dependence. Customs duty exemptions for lithium-ion cells are extended to battery energy storage

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