Union Minister H.D. Kumaraswamy has called for India to shift from a consumer to a global manufacturer in clean energy. The government has committed ₹36,280 crore to support electric mobility, battery production, and critical minerals, while aiming for 300 million tonnes of steel capacity by 2030. Investors should monitor how this policy support impacts capital spending and operational efficiency in manufacturing sectors.
Union Minister for Steel and Heavy Industries, H.D. Kumaraswamy, stated on August 6, 2026, that India’s energy security depends on building domestic manufacturing capabilities rather than relying on external sources. Speaking at the 7th CII International Energy Conference, the Minister emphasized that India must evolve from a large-scale consumer of clean technologies to a central production hub for the global energy transition.
To achieve this, the government has earmarked a total of ₹36,280 crore across three key areas. This includes ₹10,900 crore for the PM E-DRIVE Scheme to support electric mobility, ₹18,100 crore under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, and ₹7,280 crore to boost the manufacturing of Sintered Rare Earth Permanent Magnets. These funds are designed to build a local ecosystem for critical components that are currently imported.
As the world’s second-largest steel producer, India is positioning the steel industry as the foundation of this energy shift. Renewable energy infrastructure, such as wind turbines, hydrogen plants, and battery factories, requires significant volumes of specialized steel. The government is pushing to increase national steelmaking capacity to 300 million tonnes by 2030, with a strong focus on transitioning to eco-friendly production methods. This transition is essential not only for meeting domestic growth but also for remaining competitive in international markets that are increasingly demanding sustainable products.
For investors, this policy direction highlights a strategic shift toward high-value manufacturing and energy independence. The success of these initiatives will depend heavily on the ability of domestic companies to execute projects on time and maintain cost competitiveness. A key area of concern remains the industry's dependence on imported raw materials for clean energy components. Companies that can effectively integrate these new technologies while managing the costs of decarbonization may be better positioned for the long term.
Investors tracking the sector should monitor the pace of project commissioning related to these government schemes. The effectiveness of the PLI incentives and the actual expansion of steel capacity will be critical factors in determining which companies benefit from the government's push toward self-reliance. As these infrastructure projects roll out, industry updates on capacity utilization and import-substitution progress will provide a clearer picture of the sector's growth trajectory.