India has earmarked ₹11.2 trillion ($125 billion) for infrastructure spending in FY 2025–26, with a sharp focus on green energy, transmission capacity, and smart grids. The allocation, the same as last year’s, reflects continuity in public investment aimed at catalysing private capital.
“This is the decade of infrastructure, and clean energy is at its core,” finance minister Nirmala Sitharaman said while presenting the budget.
The outlay blends investments across energy, transport, and defense. Crucially, it ties into a broader ₹67.42 trillion ($800 billion) pipeline of projects in green hydrogen, clean manufacturing, and semiconductors—signalling India’s intent to become a hub for sustainable industrial ecosystems.
Policy reforms—such as streamlined land acquisition, faster environmental clearances, and smart power contracts—are being introduced to de-risk private investment.
For corporates, the opportunity is significant. “Transmission and grid upgrades are the next trillion-dollar industries,” said Sumant Sinha, chairman of ReNew Energy. “Without them, India’s energy transition will stall.”
Technology priorities include green hydrogen pilots, digitised grid systems, and advanced energy storage. The government has already committed funds to set up three new gigawatt-scale hydrogen hubs.
Analysts say India’s infrastructure bet positions it for export-driven growth, with ESG credentials increasingly demanded in global trade.