How the Budget can position us as a global clean-tech leader

THE UNION GOVERNMENT is set to unveil its annual Budget tomorrow.

- ■ SUMANT SINHA

As on previous occasions, the finance minister will carefully navigate strategies to drive growth, fiscal consolidation and enabling economic policy adjustments to geopolitical shifts. Energy transition remains a key theme intersecting all three areas and warrants special attention this year too.

The recent World Economic Forum meeting in Davos reaffirmed this imperative. Accelerating climate action across countries was a central theme, even as the US announced its withdrawal from the Paris Agreement. My takeaway from the discussions is that the world admires India's progress in clean energy, and needs more from us—both in terms of faster deployment and becoming the supply chain alternative to China.

Under the current political leadership, we are broadly on track on both counts. Below are six critical areas where, with some adjustments, the outcomes can be even more favourable.

Expedited transition from tendering to execution: India has done remarkably well to boost the scale of renewable energy (RE) procurement—over 50 gigawatt (GW) capacity was tendered in FY24, and approximately 47 GW capacity tenders have been issued in the first nine months of FY25. These bids can be converted into firm power purchase agreements through the deft use of, and enforceability of, renewable purchase obligations.