Union Budget 2026: Sustainability initiatives lauded by experts

Mumbai: The government’s environmental sustainability through green growth, nature protection linked with livelihoods, tourism and urban development has been praised by expert. However, they listed out initiatives for the future. 

“The budgetary allocation to the ministry of new and renewable energy has been enhanced further to a record high of Rs 32,914 crore (BE 2026-27) and a bulk of that (Rs 22,000 crore) is allocated for the flagship solar rooftop scheme PM Suryaghar Yojana. Coupled with the exemption given to battery manufacturing, VGF for BESS and grant to CCUS, the focus of the government is rightly tilting towards building an energy transition ecosystem,” said Aarti Khosla, Founder & Director, Climate Trends.

“To translate the Viksit Bharat intent into tangible economic impact, the government is leveraging competitive federalism through challenge mode financing. This mechanism compels states to compete for central resources—ranging from Chemical Parks to University Townships—ensuring that funds support viable, reform-oriented projects rather than mere entitlement," said Prof Anjal Prakash, Clinical Associate Professor and Research Director, Bharti Institute of Public Policy ISB.

"Technology serves as the primary implementation engine to bridge the gap between allocation and outcome. The rollout of Bharat-VISTAAR in agriculture illustrates a move from generic aid to customised, AI-driven risk mitigation for farmers,” the professor added.

“The restructuring of PFC and REC can be a major boost for the power sector by improving credit allocation and supporting the clean energy transition. Exemptions on capital goods for critical minerals will help companies set up domestic processing and refining capacity, strengthening raw material supply chains for green technologies,” saidLabanya Prakash Jena, Director, Climate and Sustainability Initiative.

“With measures like duty exemptions for capital goods for lithium-ion cell manufacturing or for inputs used in solar glass production, the budget frames India’s energy transition within a broader push for industrial competitiveness and resilient supply chains, supporting domestic production of critical inputs and access to key minerals,” pointed out Trishant Dev, Deputy Programme Manager, Centre for Science and Environment (CSE).

“Industries across the world are increasingly investing in climate mitigation by reducing the carbon footprint of their operations and supply chains. However, climate change is also heightening the vulnerability of industries, particularly MSMEs, which are more exposed to physical risks such as heat stress, flooding, water scarcity and supply-chain disruptions. The budget’s focus on strengthening MSMEs through improved access to finance, risk-mitigation instruments and institutional support is timely. These allocations can not only help MSMEs scale and remain competitive, but also enable them to build climate resilience and adopt cleaner, more resource-efficient practices,” added Ulka Kelkar, Executive Program Director, Climate, Economics and Finance Program, WRI India.

“The announcement of 'Rare Earth Corridors' marks a pivotal shift from national policies and regulatory reforms to state-level execution via local value add. It builds on the National Critical Minerals Mission and the recent Magnet Manufacturing Scheme by grounding them in the coastal states. By anchoring supply chains in mineral-rich states we are finally bridging the critical gap between upstream mining and downstream manufacturing. Crucially, the Budget backs this intent with hard fiscal support—specifically by extending Schedule XII tax deductions to exploration and exempting duties on processing machinery, which directly de-risks private entry,” added Rishabh Jain, Fellow, CEEW.