The urban population in India—the world’s most populous country—is expected to reach 675 million by 2035 as per the World Cities Report 2022 by UN-Habitat. As most commercial and industrial activities occur in urban areas and electricity is a major factor for development, this population increase will fuel a surge in electricity demand, leading to acute pressure on traditional energy grids and frequent blackouts.

The proliferation of distributed solar energy in India faces significant challenges, primarily due to the high initial investment costs of setting up a solar energy system. Also, the motivation to invest in these solutions is often found lacking, despite government subsidy schemes like the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) and the PM Surya Ghar: Muft Bijli Yojana.

With the Union Budget 2025–26 announcement of a 100 GW target for nuclear energy capacity by 2047 and Rs 20,000 crore outlay for small modular reactors (SMRs), the government’s emphasis on nuclear energy expansion is clear. There is also a clear emphasis on public–private partnerships in nuclear energy in the last two consecutive union budgets. Historically, the Department of Atomic Energy (DAE) has struggled to meet its capacity targets, largely due to challenges in securing sufficient investments.

Karnataka generated an estimated 12,140 tonnes of municipal solid waste (MSW) per day in 2023, with Bengaluru alone accounting for nearly half of this total. Much of this waste remains unsegregated, unprocessed, and left to decompose in landfills. However, this waste holds the potential to solve a major challenge in Karnataka’s cement industry.

India’s total primary energy demand stood at 39 exajoules in 2022–23, with coal contributing 55 percent, crude oil 28 percent, natural gas 5.7 percent, and the remaining coming from renewable energy sources, hydroelectric power, and nuclear energy. To meet this demand, India has relied significantly on imports, including 17 percent coal, 85 percent crude oil, 44 percent natural gas, and 95 percent methanol.

With sabka vikas as its theme, the Union Budget 2025-26 aims at stimulating balanced growth of all regions. Accelerating economic growth and securing inclusive development are, indeed, appropriate goals for a developing country like India.
 

However, in an era marked by climate change and environmental degradation, they may not be sufficient. The global climate emergency mandates that climate change mitigation and adaptation be made central to India’s economic and social policy frameworks – and in this aspect, the Budget is found wanting.