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India Union Budget 2025 Detailed Analysis

By  Ravi Shekhar , Nitika Sharma , Sanjay Mittal , Shreyanshi Pandey , Mansi Singh
1 min read

Navigating the Future - From 'India @100' to 'Inclusive Growth 2.0' in Budget 2025

UNION BUDGET 2025 
India's Union Budget 2025 sets the stage for a transformative journey, shifting from the vision of 'India @100' to 'Inclusive Growth 2.0.' Focused on sustainable development, innovation, and boosting economic self-reliance, this budget aims to empower key sectors, address regional disparities, enhance digital infrastructure, and drive holistic growth. It seeks to ensure the nation’s resilience, economic prosperity, and competitiveness in a rapidly changing global landscape while fostering inclusivity and environmental sustainability.

KEY ANNOUCEMENTS – FOR INDIAN ENERGY & INFRASTRUCTURE SECTOR 

  • Clean Energy: The Budget emphasizes investments in solar, wind, and green hydrogen, with significant policy reforms designed to accelerate the country's clean energy transition. The vision aligns with India's climate goals for a cleaner, greener future.

  • Power Sector: With a focus on enhancing thermal efficiency, modernizing grids, and improving Discoms' financial health, Budget 2025 sets the stage for a resilient and future-ready power sector.

  • Tourism: Focus on infrastructure development, tax incentives, and skill development programs will rejuvenate India's tourism sector, aiming to position the country as a global tourism hub.

  • Hydrogen: A robust push for green hydrogen with investments aimed at making India a global hub for hydrogen production and export, catalysing innovation, and supporting India's net-zero ambitions.

  • Shipbuilding & Maritime Sector: The Budget outlines funds for maritime infrastructure, port modernization, and tax incentives aimed at enhancing India’s position in global shipping.

INDIA BUDGET 2025: ADVANCING THE GREEN TRANSITION

The Union Budget 2025 lays the foundation for India's next leap in power, renewables, and energy transition, reinforcing the nation's ambition to be a global clean energy powerhouse. A strong push for grid modernization, BESS (Battery Energy Storage Systems), and smart infrastructure signals the government's commitment to enhancing energy security and grid resilience.

With renewable energy at the heart of India’s growth, increased allocations for solar, wind, and hybrid projects aim to accelerate capacity addition, ensuring a seamless shift towards a low-carbon economy. Green hydrogen emerges as a key frontier, with strategic incentives to make India a competitive producer and exporter, aligning with its "Hydrogen Mission" goals. The budget also reinforces green manufacturing, offering incentives for domestic solar PV, battery production, and advanced clean-tech solutions, reducing import dependence and boosting India's global competitiveness. 


Carbon trading mechanisms and climate financing gain prominence, pushing industries to align with net-zero goals while ensuring a sustainable trade framework. In essence, Budget 2025 is a game-changer, setting the stage for a new energy era—where India leads the world in sustainable power, clean technology, and climate-conscious trade. Eninrac Consulting deciphers the roadmap ahead—opportunities, challenges, and the way forward!

INDIA UNION BUDGET 2025-26 FINANCIAL SNAPSHOTS


INDIA UNION BUDGET 2025 -26 SUMMARY OF EXPENDITURE & INCOME 2025-26

INDIA UNION BUDGET 2025 -26 KEY NUMBERS

Budget Estimates for 2025-2026 for Key Energy and Infrastructure Ministries

Budget Estimates for 2025-2026 for Key Other Ministries

Percentage Share of Key Ministries in the Budget Expenditure for 2025-26

Subsidy (In INR Crores) offered by the GoI to key sectors

Outlay (In INR Crores) on Major Schemes on Social Sector Development


Outlay (In INR Crores) on Major Schemes on Industry and Infrastructure Development


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INDIA UNION BUDGET 2025 -26

  • Investment in energy conservation schemes exceeds the previous year’s expenditure by 77.4% indicates a growing recognition of the importance of sustainability and energy efficiency. It reflects an increasing commitment to addressing energy consumption and environmental impact, as businesses or governments allocate more resources to advanced technologies, renewable energy, and energy-saving initiatives.

  • The significant cut down in the budget allocation for the transmission system in Arunachal Pradesh for 2025-2026 from 1315.01 Cr to 0.01 Cr could be attributed to several factors, such as the potential completion of key ongoing projects, enhancements in grid infrastructure and budgetary limitations due to other state priorities. This suggests that substantial investments in the transmission network have already been made, reducing the need for significant additional funding in the upcoming budget.


  • Hike in the budget for the Power System Development Fund indicates budgetary support for upgrading transmission lines, grid modernization, implementing smart grid initiatives, strengthening distribution network etc. Expenditure on scheme for power system development fund has seen a jump of 60% in budget 2025 – 2026 as compared to the budget 2024-2025. Transfer to Power System Development Fund has also seen the rise this year as compared to the last budget this aligns with the goal to strengthen the Power System of the country.


  • More investment in reform-linked distribution schemes indicates a focused effort to enhance the efficiency and reliability of power distribution systems. It reflects a commitment to modernizing infrastructure, improving service delivery, reducing losses, and ensuring better financial health of distribution utilities. These reforms often involve upgrading technology, improving metering and billing systems, and implementing performance-based incentives, all aimed at creating a more sustainable and transparent power distribution system. Such investments typically seek to reduce power outages, ensure equitable access, and foster long-term economic growth in the energy sector.


    In budget 2025-2026 a hike of 27% is seen that shows the government focus on the betterment of the power sector by taking the needful reforms with the aim of high results.

  • Central Assistance for Pakul Dul HEP under J and K PMDP 2015 as grant to CVPPPL and grant towards the cost of downstream projection work od Subansiri Lower Project (NHPC) have seen a significant decrease i.e. from 568.68 Cr to 300 Cr that accounts to 47.24% and from 51.98 Cr to 13 Cr that accounts to approx. 75% decline respectively.


  • Significant decrease of expenditure fund is seen in other public sectors also i.e. Support for flood moderation storage – Hydro Electric project (33.4%), Payment pertaining to International Arbitration Case (58.3%) and Manufacturing Zones under Atmanirbar Bharat Package (75%).


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Eninrac Insights on India’s Green Hydrogen Market:

It is indeed true that the initial excitement or buzz around green hydrogen business in India stands reduced with the initial enthusiasm from companies of all sizes entering India's green hydrogen sector has diminished, leading to a landscape increasingly dominated by large corporations. Although there are many contributing factors but some prominent one’s are enlisted as below:


1. High Capital Expenditure and Technological Barriers:

The production of green hydrogen requires substantial investments in advanced technologies like electrolysers. These high capital expenditures pose significant challenges for small and medium-sized enterprises (SMEs). For instance, the India Green Hydrogen Market is projected to be worth $8 billion by 2030 and $340 billion by 2050, indicating substantial investments primarily from major players.

2. Economies of Scale Favoring Large Corporations:

Large corporations benefit from economies of scale, enabling them to distribute high initial costs over extensive operations, thereby reducing the per-unit cost of green hydrogen production. Companies like Reliance Industries and Adani Group have announced significant investments in green hydrogen, leveraging their scale to achieve cost efficiencies. For example, Reliance Industries invested $10 billion to generate 100 GW of solar electricity from renewable sources to produce green hydrogen by 2025.

Factsheet-India’s Green Hydrogen Development Roadmap


Source: eninrac consulting

3. Infrastructure and Supply Chain Challenges:

Developing a robust infrastructure for the production, storage, and distribution of green hydrogen demands significant investment, which is more accessible to large corporations. Challenges such as land allocation issues, high investment burdens, connectivity problems, and delays in government clearances have deterred smaller companies from participating in green hydrogen tenders.

4. Net Worth Criterion for Players Participating in RfS for SECI Bids:

The Request for Selection (RFS) mandates a minimum net worth of ₹10 million per MW (approximately USD 120,000) and a performance bank guarantee of ₹1.48 million per MW (around USD 18,048). With a minimum bid capacity set at 100 MW under Bucket 1, bidders are required to demonstrate a net worth of ₹1 billion (USD 12 million) and provide a performance bank guarantee of ₹148 million (USD 1.8 million).
These stringent financial requirements create significant barriers for micro, small, and medium enterprises (MSMEs), as their investment in plant and machinery is capped at ₹500 million (USD 6 million). This effectively excludes many manufacturing businesses and start-ups from entering the electrolyzer manufacturing sector. Furthermore, the substantial financial burden of the bank guarantee requirement poses an additional challenge for entities without established credit lines, making it even more difficult for them to participate in the bidding process.

5. Access to Financing:

Large corporations often have better access to financing options, enabling them to undertake significant projects in the green hydrogen sector. For example, Adani New Industries invested $50 billion in green hydrogen in collaboration with TotalEnergies to create the world’s largest green hydrogen ecosystem.

6. Technological Advancements and Expertise

The development and deployment of green hydrogen technologies require advanced expertise and research capabilities. Large corporations typically have dedicated research and development departments, allowing them to innovate and stay ahead in the sector. For instance, companies like Siemens and Thyssenkrupp are investing in research and development to expand their product lines in the green hydrogen market.

7.    Market Dynamics and Competitive Pressures

The competitive landscape of the green hydrogen sector favors entities that can operate at scale and absorb market fluctuations. Large corporations can leverage their diversified portfolios to mitigate risks associated with the nascent green hydrogen market, a flexibility that smaller companies often lack.

Conclusion

The dominance of large players in India's green hydrogen sector is a multifaceted issue stemming from high capital requirements, economies of scale, infrastructure challenges, policy uncertainties, financing access, technological expertise, and market dynamics. Addressing these challenges requires targeted policy interventions, financial incentives, and support mechanisms to enable smaller companies to participate meaningfully in the green hydrogen economy.

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NATIONAL ELECTRIC MOBILITY ROADMAP-GHANA

By 2035 Ghana aims to ensure that 60% of the government’s vehicle fleet is comprised of electric vehicles

ROADMAP FOR ELECTRIC BUSES IN GHANA

E-buses are one of the emerging technologies that offer opportunities to design an efficient transport system in terms of technology and fuel shift and economic incentives that can strongly contribute to economic transformation. The Ministry of Transport has proposed various targets for deployment and diffusion of the e-intracity bus technology.
The government has committed to introducing one-thousand (1,000) electric buses and related charging and maintenance infrastructure for intra-city (40%) and intercity (60%) transport services within the short term period.
The first phase involves the supply, operation and maintenance of five hundred (500) Complete Built Unit (CBU) electric buses for intra and intercity transport services which would be delivered in five (5) batches. The second phase involves the supply of five hundred (500) Semi-Knocked-Down (SKD) buses and assembly in Ghana in partnership with local assemblers.

In November 2024, Ghana rolled out its first batch e-Buses

Ghana made history with the commissioning of its first batch of electric buses for Metro Mass Transit Limited. The initiative marks a significant shift towards a more sustainable and innovative public transportation system.

Implementation Phases for the National Electric Mobility Plan:

Phase I: (2024-2026)- This phase will be the preparatory phase. The key focus will be on addressing the challenges & barriers to EV uptake

Key activities during this phase would include-

  • Establishment of the Climate Change Unit
  • Establishment of the regulatory framework
  • Development of standards & protocols for charging infrastructure to ensure inter-operability
  • Incorporating EVSE into Building Code Regulation
  • Establishment of incentives: financial & non-financial
  • Mobilization of funds to finance incentives
  • Development of human capital for the electric vehicles value chain
  • Building the capacity of Ghana National Fire Service to manage EV related fires
  • Addressing electricity supply issues including grid stability, grid congestion pressures etc.
  • Development of standards & regulations for converting internal combustion engine vehicles to electric vehicles
  • Public education & awareness creation
Phase II: (2027-2035)- The principal objective of this phase is to ensure a successful take-off & successful transition to EVs in Ghana. The target is that by the end of this phase EV penetration rate will be 35%.

Principle activities during this phase would include –

  • Provision of information on EVs & associated benefits
  • Ensuring secure, resilient & sustainable EV supply chains
  • Implementation of incentives for consumers & suppliers: low-interest loans
  • Implementation of incentives for electric vehicle supply equipment (EVSE). EVSE supplies electricity to an electric vehicles. EVSE systems include electrical conductors, related equipment, software &communications protocols that deliver energy efficiently & safely to the vehicle. These are classified as Level I (120 volts AC).Level 2 (240 volts AC) & DC fast charger (480 volts DC & higher)
  • Promotion of battery swapping stations
  • Procurement of EVs by the government institutions: 60% of the government vehicles fleet to be EVs by 2035.
  • Procurement of EVs by government institutions:60% of government vehicles fleet to be EVs by 2035
  • Procurement of EVSE by public institutions: 100% of MDAs & MMDAs have EVSE
  • Ensuring charging infrastructure roll out at homes & private workplaces
  • Promoting assembling of EVs in Ghana
  • Supporting production of lithium-ion batteries in Ghana
  • Promoting collaboration with countries in the sub-region for the adoption of EVs
  • Supporting electrifications of ICEs
  • Encouraging public transport operators to move to EVs
  • Promoting PPP investment for EV charging infrastructure
  • Data analysis & research to provide relevant information to support decision-making related EV transition
  • Phase III: (2036-2045)- During this phase, efforts will be made to ensure that by the year 2045 no new petrol or diesel vehicles would be sold or imported into Ghana
  • Gradually phase out the incentives for promoting EV uptake
  • Strengthen efforts to assemble EVs in Ghana
  • Consolidate Ghana’s position as the hub for the supply of lithium-ion batteries
  • Strengthen public education on plans to phase out the sale of ICE vehicles in Ghana
  • Ensure that the government vehicle fleet will be 100% EVs by the year 2040
  • Strengthen Customs Division to seal all potential loopholes for entry of ICEs into Ghana
  • Continue to support the electrification of ICEs into Ghana
  • Continue efforts to ensure a stable & adequate supply of electricity to support EV transition

Policy Goals and Prioritized Measures

Policy Goal Prioritized Policy Measures
Economic & fiscal measures Affordable financing mechanisms, incentives and targeted subsidies
Affordable and special electricity (energy) tariff for charging EVs
Infrastructural measures Installation of intra-city and inter-city charging points
Garages, maintenance workshops and training centres
Traffic management: Contraflow bus lanes and dedicated bus lanes
Technical measures More extended range and battery capacity
Skills development, retrofitting of ICEVs, and low-carbon technology transfer
Institutional framework, policy and regulatory measures Review of the Harmonized System (HS) Customs code
Standardization, licensing and certification of EVs and related components
Research, capacity building, assembly and manufacturing
Energy security/ renewable EV charging and battery storage facilities, recycling and end-of-life disposal systems
Social measures Procuring, piloting and testing EVs
Roadmap on EV awareness creation and campaigns
Local EV development measures to accelerate the uptake of EVs Review and adapt the Ghana Automotive Development Policy for ICEVs to provide enabling environment for local start-ups
Establish an assembling plant and ensure local content and automotive standards are enforced in the domestic industry
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India Union Budget 2025 Budgetary Allocations For Ministry Of Power

India Union Budget 2025 Budgetary Allocations For Ministry Of Power

Ministry of Power Expenditure Budget 2025 Breakdown: Sectoral Allocations and Market Insights, Break...

Is Indian Hydrogen Market not fit for SME’s as Large Firms dominate?

Is Indian Hydrogen Market not fit for SME’s as Large Firms dominate?

It is indeed true that the initial excitement or buzz around green hydrogen business in India stands...

National Electric Mobility Roadmap Of Ghana

National Electric Mobility Roadmap Of Ghana

E-buses are one of the emerging technologies that offer opportunities to design an efficient transpo...