With substantial investments in renewable energy, climate-resilient agriculture and afforestation, the budget lays a strong foundation for a greener future
The Union Budget 2025 signals a decisive shift towards environmental sustainability, reinforcing India's commitment to a cleaner, greener future. With a strong focus on renewable energy, sustainable agriculture, afforestation, waste management and climate resilience, the government has intended to balance economic growth with ecological responsibility. Expanding solar, wind, and hydro energy, along with incentives for green hydrogen, is a welcome step toward reducing India's carbon footprint.
The emphasis on electric vehicles (EVs) and battery storage solutions will further bolster the transition to clean energy, reducing dependence on fossil fuels. However, the chal lenge remains in efficient implementation and ensuring accessibility to these technologies, especially in rural and semi-urban areas. Agriculture, often at the crossroads of economic and environmental policies, has received a much-needed sustainability boost. The PM Dhan-Dhaanya Krishi Yojana and Mission for Aatmanirbharta in Pulses are moving in the right direction, ensuring climate-resilient farming and reducing excessive reliance on chemical fertilisers. However, agroforestry, regenerative farming and watershed management need further integration into mainstream agricultural policy to create a truly sustainable food system.
The budget’s allocation for afforestation and biodiversity conservation reflects an increased understanding of the role that forests and ecosystems play in mitigating climate change. With the Compensatory Afforestation Fund Management Authority (CAMPA) receiving enhanced support, there is hope that India’s forests will be managed with greater transparency and scientific precision. However, urban greening and nature-based solutions in city planning deserve stronger commitments, given the growing challenges of urban heat islands and pollution.
The circular economy model gets a notable push with incentives for waste-to-energy projects, stricter plastic waste management, and extended producer responsibility (EPR) regulations. These are positive steps, but enforcement remains a crucial hurdle. Ensuring that industries comply with waste management norms and moving towards a zero-waste economy will require robust monitoring and public participation.
The budget’s recognition of climate resilience, particularly through disaster management investments and early warning systems, is a commendable effort. Coastal and flood-prone regions will benefit from increased funding for disaster-resistant infrastructure, but a long-term climate adaptation roadmap needs further detailing.
One of the most promising aspects of Budget 2025 is the expansion of India’s Green Finance ecosystem. With tax incentives for Green Bonds and carbon trading markets, the government is encouraging private sector participation in sustainability efforts. However, ensuring that green investments translate into real environmental benefits will require stringent regulatory oversight and transparency.
While Budget 2025 takes significant strides in promoting environmental sustainability, its true success will be measured by execution, enforcement, and long-term commitment.
India has demonstrated political will in tackling climate change, but the challenge remains in aligning policy promises with on-the-ground realities. Sustainability is not just a budgetary allocation; it is a mindset shift. To truly achieve a green future, India needs a whole-of-society approach, where the government, private sector, and citizens work together to ensure that economic growth does not come at the cost of ecological wellbeing. With this budget, India has set the direction—what remains is the resolve to act decisively.
(The writer is a retired IFS officer; views are personal)
