This article analyses the Union Budget 2025-26 and its impact on India's power
sector, focusing on reforms, financial allocations, and strategic investments. It covers the
Nuclear Energy Mission, distribution sector reforms, domestic manufacturing incentives, and
welfare measures. Emphasising private sector participation and financial stability, it
explores efforts to integrate renewables with nuclear energy for a balanced transition.

The Union Budget for 2025-26 marks a pivotal moment for India's power sector,
introducing transformative reforms aimed at modernising and expanding its nuclear and
conventional energy infrastructure. The budget pledges transformative reforms spanning
over 6 domains, which include power sector, financial sector, taxation, urban development,
mining and regulatory reforms. This fiscal plan highlighted India as the fastest growing
among all major economies. With the goal of Viksit Bharat 2047, reforms in the power sector
signal a renewed focus towards clean energy transition by enhancing different energy
sources including our nuclear capabilities, while also encouraging strategic investments to
support long-term growth. By establishing a framework that aims to streamline operations
and attract private participation, the budget underscores the government's commitment to
bolstering the nation's energy infrastructure and ensuring robust energy security for India.

The power sector's budget for FY 2025-26 shows an increase compared to the revised
estimates for 2024-25, which stood at ₹19,845 crore, down from the original budget estimate
of ₹20,502 crore for the same year. The increase in the current year's allocation to ₹21,847
crore marks a steady 10.09% year-on-year increase. It signals a promising outlook for the
power sector, suggesting a more stable and optimistic approach to funding in the coming
year. The shift from revised estimates to a higher budget estimate highlights the
government's focus on strengthening the sector's financial backing and ensuring that the
energy infrastructure can meet India's growing demands.

Author

Kalyani Shukla

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