- India’s #UnionBudget2026 came out this week and while energy didn’t make the headlines, there were quiet climate undertones. Here are 6 takeaways: 🧵1/8
- 1️⃣ Capital expenditure (CapEx) is the headline this year—but the signal is continuity. The budget carries forward India’s #CleanEnergy manufacturing & storage agenda through schemes like Auto PLI, PM-Edrive, & battery storage initiatives. 2/8
- 2️⃣ Prioritizing rare earth corridors, which would connect 4 states, signals a shift from exporting raw minerals to building domestic value chains. If implemented well, this could reduce import dependence & position India in emerging clean-tech & strategic mineral markets. 3/8Feb 6, 2026 16:03
- 3️⃣ Basic custom duties exemptions Exemptions on imports of #CleanEnergy materials & capital goods can ⬇️ production costs & ⬆️ competitiveness. When paired with industrial policy & recycling ecosystems, they help India capture greater value in the energy transition. 4/8
- 4️⃣ Carbon capture, utilization, & storage is high cost & high risk The Budget's INR 20,000 crore for #CCUS signals serious intent to develop the technology yet policy-makers must weight costs & viability against proven, lower-cost alternatives. Learn more: iisd.org/articles/ins... 5/8
- 5️⃣ Rising #LPG subsidies come with risks. LPG subsidy allocations are up marginally this year, yet if crude prices swing, it could rise further. Better targeting + faster diversification away from oil dependence can ease fiscal pressure while protecting vulnerable households. 6/8
- 6️⃣Coal gasification received a significant allocation of ₹3,500 crore—signalling a major push to make it viable. With the technology emerging as a key part of India's industrial strategy, climate & financial risks must be transparently assessed. 📗 iisd.org/publications... 7/8
- What needs to come next? The India budget’s significant CapEx is welcome—but must be carefully calibrated to deliver results. The action now shifts to line ministries to clear bottlenecks & accelerate implementation of key clean energy schemes across #EVs, #CriticalMinerals, & #renewables. 8/8
