The Union Budget 2026-27 represents a fundamental transformation in India’s approach to resource security and decarbonisation, according to Mr. Masood Mallick, Chairman of the CII National Committee on Waste to Worth Technologies and Managing Director & Group CEO of Re Sustainability Limited. The budget treats these areas as strategic economic priorities rather than mere regulatory compliance measures.
The government’s commitment of INR 20,000 crore to Carbon Capture, Utilisation and Storage (CCUS) over five years has been highlighted as a particularly crucial signal for Indian industry. This substantial investment directly addresses the competitiveness challenges that Indian manufacturers face under international mechanisms such as the European Union’s Carbon Border Adjustment Mechanism.
The CCUS funding provides a credible pathway for hard-to-abate sectors like steel and cement to maintain their global competitiveness while simultaneously pursuing decarbonisation goals. These industries, which have traditionally struggled with emissions reduction, now have a structured framework for transitioning to cleaner operations without sacrificing their market position.
The budget also emphasises building domestic capability across the critical minerals value chain, from exploration through to processing. Duty exemptions on capital goods for critical mineral processing, combined with support for rare-earth corridors in mineral-rich states, are expected to strengthen urban mining and large-scale resource recovery initiatives.
For industries involved in recovering value from end-of-life materials, the recognition of secondary resources as strategic assets marks a significant policy shift. This acknowledgment is seen as both timely and necessary for the development of a robust circular economy infrastructure in India.
The extension of duty exemptions for lithium-ion cell manufacturing in battery energy storage systems demonstrates the government’s understanding of how clean energy transition and circularity complement each other. Additionally, the rationalisation of excise duty on biogas-blended CNG reflects a comprehensive approach to sustainable energy solutions.
These measures are expected to unlock substantial investment in recovery infrastructure and accelerate the transition from linear to circular industrial models. The budget’s focus on execution, scale, and infrastructure development provides a clear roadmap for industries planning long-term sustainable investments.
The budget positions circularity as foundational to India’s manufacturing resilience and its Viksit Bharat ambitions. According to industry observers, these policy measures give businesses the confidence to invest boldly in sustainable technologies and infrastructure that will support India’s economic growth while addressing environmental concerns.
