Budget 2025-26

The Union Budget for 2025-26 introduces several initiatives to bolster sustainability efforts across various sectors in India. Key measures include:

1. National Manufacturing Mission

? Objective: Promote the “Make in India” initiative by supporting domestic manufacturing, particularly in clean technologies.

? Focus Areas:

? Clean Tech Manufacturing: Enhance domestic production of solar photovoltaic cells, electric vehicle (EV) batteries, wind turbines, and grid-scale batteries.

? Policy Support: Provide a comprehensive framework for central ministries and states to facilitate manufacturing growth.

? Skill Development: Establish National Centres of Excellence for Skilling in collaboration with global partners to equip the workforce with necessary skills. ?

2. Nuclear Energy Mission

? Goal: Develop at least 100 gigawatts (GW) of nuclear energy capacity by 2047 to diversify energy sources and reduce carbon emissions.

? Key Actions:

? Legislative Amendments: Propose changes to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to encourage private sector participation.

? Small Modular Reactors (SMRs): Allocate ?20,000 crore for research and development of indigenous SMRs, aiming to operationalize at least five by 2033. ?

3. Climate Finance Taxonomy

? Purpose: Develop a standardized system to classify economic activities aligned with environmental objectives, facilitating increased capital flow towards climate adaptation and mitigation projects.

? Expected Outcomes:

? Enhanced Transparency: Provide clear definitions for green financing, ensuring consistency in fund allocation.

? Investor Confidence: Build trust among investors by setting clear guidelines for sustainable investments. ?

4. Urban Challenge Fund

? Allocation: ?1 lakh crore to position cities as growth hubs and improve urban infrastructure.

? Initiatives:

? Creative Redevelopment: Support innovative urban projects to enhance livability and sustainability.

? Water and Sanitation: Invest in infrastructure to provide clean water and efficient sanitation services. ?

5. Support for Electric Vehicles (EVs) and Renewable Energy

? Incentives:

? Duty Exemptions: Remove basic customs duty on critical minerals like lithium-ion battery scrap, cobalt, lead, and zinc to support domestic manufacturing of EVs and renewable energy components.

? Infrastructure Development: Promote the establishment of charging stations and other necessary infrastructure to encourage EV adoption. ?

6. Agricultural Sustainability Initiatives

? Pradhan Mantri Dhan-Dhaanya Krishi Yojana:

? Target: Develop 100 districts with low productivity by promoting sustainable agricultural practices, crop diversification, and improved post-harvest storage.

? Climate-Resilient Seeds: Invest in the development of seeds capable of withstanding adverse weather conditions to ensure food security. ?

7. Maritime and Shipbuilding Infrastructure

? Maritime Development Fund: Establish a ?25,000 crore fund to provide long-term financing for maritime projects, aiming to enhance the shipbuilding industry and promote sustainable practices.

? Ship Recycling: Introduce a Shipbreaking Credit Note Policy to incentivize environmentally friendly ship recycling based on the scrap value of vessels. ?

8. Expansion of Atal Innovation Mission (AIM)

? Objective: Foster a culture of innovation and entrepreneurship with a focus on sustainability.

? Key Components:

? Atal Tinkering Labs: Establish labs in schools to encourage young minds to engage in innovative projects related to environmental sustainability.

? Atal Incubation Centres: Support startups working on sustainable technologies by providing necessary resources and mentorship. ?

These initiatives reflect the government’s commitment to integrating sustainability into India’s economic growth trajectory, addressing environmental challenges, and promoting green technologies across various sectors.