Renewable Stocks Rally as National Manufacturing Mission Gets a Boost in Union Budget 2025-26
The renewable energy sector witnessed a significant surge in stock prices following the announcement of a National Manufacturing Mission in the Union Budget 2025-26. The mission, aimed at supporting clean-tech manufacturing, particularly in the areas of EV batteries and solar panels, has sparked optimism among investors. As of 11:30 am, renewable stocks saw a notable rise of around 5 percent.
Prominent stocks like Waaree Energies, Inox Wind, NTPC Green, JSW Energy, NHPC, and SJVN saw gains of 2-5 percent. These stocks were among the top gainers as the market responded positively to the government’s emphasis on strengthening domestic production capabilities for clean energy technologies.
During her Budget speech on February 1, Finance Minister Nirmala Sitharaman introduced the National Manufacturing Mission, which aims to bolster clean-tech manufacturing within India. This mission is expected to focus on enhancing domestic production of critical renewable energy components like EV batteries and solar panels. Market experts had previously indicated that they were hoping for government initiatives that would incentivize local manufacturing in emerging renewable sectors and help resolve the execution challenges involved in adopting clean energy solutions at scale.
The renewable sector had also been anticipating more support for battery storage. While the government already has a production-linked incentive (PLI) scheme in place to promote battery production, industry stakeholders were hoping for additional duty-based support to make local manufacturing more competitive.
In the previous Budget, the Finance Minister had waived import duties on 25 minerals, including lithium, which was widely welcomed by the electric vehicle (EV) industry. This year, battery manufacturers hoped that the government would introduce higher tariffs on battery imports from China, in a bid to protect and promote domestic manufacturing.
This focused support for local production within the renewable energy sector, especially in the crucial areas of battery storage and solar panels, has generated confidence among industry players and investors, marking a positive step toward India’s clean energy future.
