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Budget Signals Shift Toward Energy-Tech Self-Reliance

India’s clean energy roadmap is entering a new phase, with the Union Budget 2026–27 placing strong emphasis on manufacturing depth and technological ownership, according to Mr Amod Anand, Co-Founder & Director, Loom Solar. Key announcements around ISM 2.0, electronics manufacturing, critical minerals, and rare earth corridors indicate that the focus is moving beyond capacity addition to building long-term capabilities within the clean energy ecosystem.

For the solar sector, this transition represents a structural change. India is gradually evolving from a hardware assembly-driven market to one that owns and develops critical layers of the energy-technology stack, including control systems, forecasting platforms, and grid software that enable advanced solar and energy storage solutions.

Mr Anand highlighted that the development of rare earth corridors addresses a less visible yet vital bottleneck in the solar value chain by ensuring access to materials needed for high-efficiency motors, power electronics, and advanced energy systems, thereby reducing strategic dependence on imports, particularly from China.

He added that customs duty exemptions for critical mineral processing, lithium-ion cell manufacturing for storage, and key inputs such as sodium antimonate used in solar glass further strengthen domestic value chains. Together, these measures lay the groundwork for India’s long-term energy transition, while reinforcing energy security and manufacturing resilience.